The SAP S/4HANA Cloud, public edition solution is delivered, based on your scope items, with preconfigured content for core business processes in finance, procurement, manufacturing, sales, and supply chain. The chart of accounts (CoA), a list of all G/L account master records, is part of the preconfigured SAP Best Practices reference content. The global standard operating CoA delivered with SAP S/4HANA Cloud, public edition is YCOA.
Note the following:
- YCOA cannot be changed.
- YCAO is assigned to all company codes preconfigured by SAP. This assignment cannot be changed.
- All company codes must share the same YCOA.
The default list of accounts delivered as part of YCOA in SAP S/4HANA Cloud, public edition covers a wide range of G/L accounts and is structured to meet the requirements of several organizations and industries. While the standard YCOA is intended for use in several industries, it does not cover the best practices followed in public sector organizations. For this reason, the public sector industry variant of YCOA has been introduced. The public sector industry variant of YCOA delivered with SAP S/4HANA Cloud, public edition is USL. With this variant, a standard delivered list of accounts from the operating chart of accounts are renumbered without changing the properties of the G/L accounts.
When you initially scope your SAP S/4HANA Cloud system and release the configuration data from SAP Central Business Configuration for the first time, you can choose to adopt the standard YCOA or the public sector industry variant of YCOA. Once the YCOA has been released from SAP Central Business Configuration and is active in the SAP S/4HANA Cloud system, G/L accounts cannot be renumbered using the industry variant. However, as part of your implementation, you have the option to renumber per your requirement using the self-service configuration UI (SSCUI) 150000 - Renumber G/L Accounts.
Purpose of Public Sector Industry Variant CoA
The key purpose of the public sector industry variant of YCOA is to provide a public sector best business practice chart of accounts. As part of the industry variant initiative, the SAP public sector solution in Public Cloud customizes the default delivered operating chart of accounts, taking the core list of G/L accounts in the 'YCOA' operating chart of accounts and renumbering them without altering their characteristics. This adaptation ensures that it meets the specific requirements of public sector organizations.
Typically, the list of G/L accounts in the chart of accounts is a customer-owned document. However, in SAP S/4HANA Cloud, public edition, G/L accounts are configuration data and, by default, SAP delivers a list of accounts based on the scope items selected. The objective of this public sector industry variant solution is to map the default delivery from the YCOA operating chart of accounts to new numbers when necessary. This provides a best business practice chart of accounts for the public sector. This helps kick start the chart of accounts initiative instead of starting it from scratch.
Customers still have the option to use an implementation-based tool in which they can renumber G/L accounts as necessary, irrespective of whether or not they choose to use the industry variant chart of accounts.
The USL variant is packaged in scope item 5R0. This provides a public sector best business practice chart of accounts that is intended to fit the generic requirements of state and local governments that use full and modified accrual accounting. Other public sector organizations may use 5R0 and renumber accounts if necessary using an implementation-based G/L accounts renumbering tool.
Currently, there is only one USL variant (internal variant identification for US GASB generic state and local government chart of accounts). In the future, there is the potential to deliver more variants for different US public sector sub-industries, such as universities, school districts, airports, local transits, and nonprofit organizations.
The public sector industry variant USL (scope item 5R0) is not intended for Canada or other countries.
To use the public sector industry variant of the chart of accounts, you must select it during the first scope definition. This is done in SAP Central Business Configuration tool as part of the Define Scope step.
Note
The industry variant chart of accounts, USL (scope item 5R0), can only be selected during the first time you do your scope definition. It cannot be added at a later point of time, even during a scope extension.What Does the Industry Variant do?
A lot of accounts that are delivered as part of default delivery are structured in a way that may not fit public sector practices. The industry variant restructures these accounts by renumbering and/or redescribing them in a way that fits public sector practices.
The industry variant USL is packaged and preconfigured in scope item 5R0. This package maps an SAP standard G/L account (Internal ID) to SAP public sector for best practice G/L account range (External ID). If required, this mapping can involve changing the account description, in addition to renumbering.
For example, in the standard operating chart of accounts, Zero Balance Clearing Accounts (which are used in document splitting and balancing) are delivered with account number ranges 29500000 to 29500999 with description Zero Balance Clearing Account for…. In the public sector, it is a common best practice to report balances in these accounts as part of Equity in Pooled Cash, which is part of cash and cash equivalents. As part of the USL variant packaged in scope item 5R0, these accounts are renumbered and redescribed as 10000000 - Equity in Pooled Cash - ….
The objective of the industry variant is to renumber the G/L accounts without changing the characteristics of the delivered accounts. In this way, the accounts continue to fit the original scope for which they were created. The industry variant can be used in the following scenarios:
- Accounts from YCOA reused as is, without renumbering, because they fit the industry variant structure.
- Accounts from YCOA reused with renumbering because they do not fit the industry variant structure.
- New accounts created by industries. These are special accounts created by the public sector solution that will have special leading alphanumeric characters in the default delivery. The industry variant changes them to a common looking account.
- Accounts not required by industry. These accounts are renumbered and repurposed to "unused" category between 99999000 and 99999999.
- Accounts with description changes.
Results
Once the industry variant USL (scope item 5R0) is chosen in your scoping, the standard default-delivered accounts are renumbered and stored in an SAP Central Business Configuration workspace. G/L account content and the related configurations are updated with the new numbers to be deployed.
While the G/L account is renumbered and the description might be changed, all characteristics and attributes are retained. For example, all the following items are reflected in the newly renumbered account:
- Manage G/L accounts - the master data itself
- Automatic account assignment configurations
- Financial statement version
- Content wherever G/L account or cost element is used, for example, allocations
- Dependent data elements, such as budget account, cash origin account, and carryforward account
SAP Best Practices test scripts are delivered as part of each scope item. These test scripts, if they have G/L accounts, carry default-delivered numbers, that is, internal IDs. If you have scoped and deployed with 5R0, allow additional effort to update the test script to external IDs.
The chart of accounts YCOA is always used as the operating chart of accounts, regardless of the industry and country of the customer.
This chart of accounts is used in the business process configurations delivered via SAP Best Practices. With this approach, accounts with the same business semantic can be reused without duplicating configuration and testing efforts.
SAP Best Practices are used to deliver mappings to deviating account IDs and deviating account descriptions adapted to external public sector charts of accounts. The business semantic of those accounts remains. These mappings are called variants of the operating chart of accounts.
During the installation of an SAP S/4HANA Cloud, public edition, the customer can select the public sector variant (scope item 5R0) so that the system appears from the beginning in accordance with such an external standard chart of accounts.
High-Level Overview
Before Deployment
During the first scoping, the customer selects the relevant business scope items for their organization. If the customer needs the public sector best business practice chart of accounts, the public sector chart of accounts variant must be selected (exclusively) as part of the scope. The relevant accounts that need to be renumbered are identified based on the selected Business Scope.
Note
The variant must be selected during the very first scoping. It cannot be changed at a later point in time.After Deployment
Additional customer-specific adaptaions related to the G/L Account ID and description can be done based on the renumbering tool. This is a customer-specific implementation.
It is also possible for the customer to add scope items. If G/L accounts are delivered as part of these subsequent scope items and if they are part of renumbering variant, they will be automatically renumbered (if necessary), without additional effort.
If there is a conflict between a renumbered account and a customer-created account, SAP renumbering will automatically obtain the next available G/L account number.
YCOA Number Ranges
The number ranges of the standard delivery of operating chart of accounts (YCOA), without the public sector variant, are provided in the table.
YCOA Number Ranges Without Public Sector Variant
| Number Range | Description |
|---|---|
| 10000000~19999999 | Assets |
| 20000000~29999999 | Liabilities |
| 30000000~39999999 | Equities |
| 40000000~49999999 | Revenues |
| 50000000~59999999 | Cost of Sales |
| 60000000~69999999 | Operating Expenses |
| 70000000~79999999 | Other Income and Expenses |
| 90000000~99999999 | Secondary Cost Elements (for internal allocation) |
The number ranges of the public sector variant of YCOA, after public sector variant 'USL' (scope item 5R0) is deployed, are provided in the table.
YCOA Number Ranges After Public Sector Variant
| Number Range | Description |
|---|---|
| 10000000~19999999 | Assets and deferred outflows of resources |
| 20000000~29999999 | Liabilities and deferred outflows of resources |
| 30000000~39999999 | Fund balances/Net positions |
| 40000000~49999999 | Revenues |
| 50000000~59999999 | Expenses |
| 90000000~99999000 | Controlling specific accounts |
| 99999001~99999999 | Not used accounts |
The following is an overview of the broader classifications (for balance sheet accounts) of public sector variant of YCOA, after public sector variant 'USL' (Scope Item 5R0).
YCOA Number Ranges After Public Sector Variant: Broader Classification
| 1st Level Classification | 2nd Level Classification | From | To |
|---|---|---|---|
| Assets and Deferred Outflows of Resources | 10000000 | 19999999 | |
| Current Assets | 10000000 | 13999999 | |
| Non-Current Assets | 14000000 | 14999999 | |
| Restricted Assets | 15000000 | 15999999 | |
| Capital Assets | 16000000 | 16999999 | |
| Other Assets | 19000000 | 19099999 | |
| Deferred Outflow of Assets | 19100000 | 19199999 | |
| Liabilities and Deferred Inflows of Resources | 20000000 | 29999999 | |
| Current Liabilities | 20000000 | 22999999 | |
| Non-Current Liabilities | 23000000 | 23999999 | |
| Liabilities Payable From Restricted Assets | 24000000 | 24999999 | |
| Deferred Inflow of Resources | 26000000 | 26999999 | |
| Other Liabilities | 29000000 | 29999999 | |
| Equity/Retained Earnings | 30000000 | 39999999 | |
| Net Position | 30000000 | 30999999 | |
| Fund Balances | 31000000 | 33999999 | |
| Migration | 39910000 | 39919999 |
The following is an overview of the broader classifications (for revenues) of public sector variant of YCOA, after public sector variant 'USL' (Scope Item 5R0).
YCOA Number Ranges After Public Sector Variant: Broader Classification for Revenues
| 1st Level Classification | 2nd Level Classification | From | To |
|---|---|---|---|
| Revenues | 40000000 | 49999999 |
Note
This is a future development and is subject to change.The following is an overview of the broader classifications (for expenses, CO specific, and unused accounts) of public sector variant of YCOA, after public sector variant 'USL' (Scope Item 5R0).
YCOA Number Ranges After Public Sector Variant: Broader Classification for Expenses, CO Specific, and Unused Accounts
| 1st Level Classification | 2nd Level Classification | From | To |
|---|---|---|---|
| Expenses | 50000000 | 59999999 | |
| Personal Services and Employee Benefits | 50000000 | 50999999 | |
| Purchased/Contracted Services | 51100000 | 51399999 | |
| Material & Supplies | 51400000 | 51699999 | |
| Capital Outlays | 52000000 | 52499999 | |
| Interfund/Interdepartmental Charges | 52500000 | 52599999 | |
| Depreciation/Amortization | 52600000 | 52799999 | |
| Other Costs | 55000000 | 55099999 | |
| Debt Service & Leases | 55100000 | 55799999 | |
| Other Financing Uses | 56000000 | 56099999 | |
| Settlement Accounts | 59000000 | 59199999 | |
| Cash Origin Constant | 59001000 | 59001999 | |
| Controlling Specific GL Accounts | 90000000 | 99999000 | |
| Unused Accounts | 99999001 | 99999999 |
Public Sector Variant: Key Considerations
- Ease of setting up budget control hierarchies for budget accounts
In the public sector variant of operating chart of accounts, P&L accounts (especially expenses accounts) are grouped together. This is done to support the best practices followed in budget account grouping for budget appropriations.
Public sector natural account grouping, such as personnel, supplies, services, capital, and debt services, are delivered to facilitate the setting up budget control for these hierarchies.
- Account grouping structure that support ACFR reporting
The structure and number ranges in the public sector variant are built with the Annual Comprehensive Financial Report (ACFR) in mind.
- Accounts for modified accrual account
Some public sector organizations have to report by modified accrual accounting. Certain scenarios require separate G/L accounts for modified accrual accounting and reporting.
While these accounts are delivered as part of the standard operating chart of accounts, they may include special numbering, for example, a G/L account that starts with a letter.
The public sector industry variant renumbers these accounts and fits them in the appropriate category.
- New accounts for public sector specific processes
Public sector-specific revenue accounts (for example, revenue accounts, other financing sources, and uses) may use a special number range that start with letters. Similar to modified accrual accounts, the public sector industry variant renumbers these accounts.
- Unused
Accounts for some packaged content do not apply for public sector processes. In such cases, these accounts are mapped to an unused list between 99999001 to 99999999.
The following options are available:
- If no renumbering is required, use the standard delivered operating chart of account.
- To renumber the standard delivered list of G/L accounts, use the public sector industry variant USL (5R0).
- For customer-specific requirements, use renumbering SSCUI 150000.
- To renumber the standard delivered list of G/L accounts, use the public sector industry variant USL (5R0) and use renumbering SSCUI 150000 as part of the implementation.
A comparison of renumbering using the industry variant and implementation-based tool (SSCUI 150000) is provided in the table.
Differences between Renumbering Using Industry Variant and the Implementation-based Tool
| Industry Variant - Scope Item 5R0 | Implementation Tool (SSCUI 150000) | |
|---|---|---|
| Phase | Must be done as part of scoping the very first time | As part of Implementation |
| Delivery | SAP delivered | Customer specific |
| Charges | Can be renumbered later in the implementation | - |
| Limitations | Cannot be initiated once scoping is done | Cannot be used once posting is done against an account |
| Downtime | Deployed with renumbered accounts once scoping is complete | System downtime when tool is running renumbering |
| Change Log | There will be no change log for renumbering | There will be a change log available in the Manage G/L account app |
To verify whether or not 5R0 is active, complete the following steps:
- In the SAP Central Business Configuration tool, choose the Define Scope app.
- Navigate to My selected Scope.
- Expand Public Sector Management.
If Account mapping for US GASB is displayed, 5R0 is active.
Within a G/L account, it is not possible to verify whether or not it went through industry chart of accounts-mapping variant.
Key Takeaways
- The standard delivered operating chart of accounts cannot be changed. This means that you must use the operating chart of account YCOA. However, you have the option to renumber using the public sector industry variant and/or an implementation based tool.
- The public sector industry variant delivered by SAP provides best business practice chart of accounts for state and local governments. This variant can be used to renumber the G/L accounts of 'YCOA' operating chart of accounts. This provides a good starting point and can be further enhanced to meet the needs of the customer.
- During scoping, you must decide whether or not you want to use the public sector industry variant. It is not possible to add the public sector industry variant afterwards.
- Once renumbered, underlying master data, configurations, and content are reflected in the renumbered G/L account.