SAP FICO Global Parameters refer to a set of mandatory variants and control parameters that must be maintained for every company code to enable smooth financial accounting and integration with Controlling.
These parameters define the basic accounting framework of a company code, such as:
Chart of Accounts
Fiscal Year Variant
Posting Period Variant
Field Status Variant
All these are maintained based on the Variant Principle.
Master Data
O Master Data is the information which remains in the system for a long period of time and does not change so often such as G/L Master Data, Customer Master Data, Vendor Master Data, Bank Master Data, Item Master, User Master Data etc.
O It represents the business objects that contains agreed upon information which is shared across an organization
O It is non-transactional in nature but is used in transactional documents as an information about a G/L account, Customer/Vendor or an item etc.
O G/L Master data (Centrally) - Both chart of accounts level/segment and company code level/segment - T-code: FSOO. The example is Operational chart of accounts. Table name is SKA1
O G/L Master data (Chart of accounts level/segment) - T-code: FSPO. The examples are Group chart of accounts and Country chart of accounts. Table name is SKAS- if you don't find the same group chart of account and country chart of account, so you can use the transaction code FSP0 to create them.
O G/L Master data (Company code level/segment) - T-code: FSSO. Table name is SKB1
O Menu path: SAP Easy Access -> Accounting -> Financial Accounting -> General Ledger -> Master Records -> G/L Accounts -> Individual Processing
O G/L Master data can either be created through SAP Easy Access or through SAP FIORI app: Manage G/L Account Master Data with the Role Name: SAP_BR_GL_ACCOUNTANT
Business Scenario
O The company wants to have one operative chart of accounts which is common among all the company codes and it wants group chart of accounts for consolidation purposes and country chart of accounts for reporting purposes
O The company also wants that the length of an account should be 6 and wants to create the following G/L account groups with their respective number ranges:
O Asset: 100000-199999
O Liabilities: 200000-299999
O Expenses: 500000-599999
O Revenue: 600000-699999
2 - Open Item Management
O If you set the "Open item management" indicator in the master record for an account, the line items in this account is marked as open or cleared
O You normally set this indicator for those G/L accounts which are required for clearing
O It is easier to see which business transactions still need to be cleared
O You should use open item management for the following accounts:
O Bank clearing accounts
O Clearing accounts for goods receipt/invoice receipt
O Salary clearing accounts
O You can only activate or deactivate open item management if the account has a zero balance
Reconciliation Account
O This account is normally assigned to the Customers' and Vendors' master record to record all the transactions in the sub-ledger
O When you post to an account in the sub-ledger, the system automatically posts to the corresponding reconciliation account
O It ensures that the total of all the G/L account balances is always zero
O You cannot post to a reconciliation account manually
O Using the reconciliation account procedure, it is possible to create a balance sheet and a profit and loss statement at any time
O The line item display is generally active by default for a reconciliation account
Archiving a G/L Account – Mark for Deletion and Block for Posting
1. Archiving a G/L Account
When an organization no longer needs an account, it doesn't just "disappear." It must go through a formal process to ensure data integrity.
Requirements for Archiving:
The account must be Marked for Deletion in both the Chart of Accounts (COA) segment and the Company Code segment.
The system performs checks before archiving. A critical check is ensuring that all transaction figures associated with that G/L master data have already been archived.
Navigation: Top menu > G/L account >Set delete flag.
2. Blocking for Posting
If you want to stop users from making new entries but aren't ready to archive the account yet, you "block" it.
Scope: Like deletion, you can block an account in both the COA and Company Code segments.
Special Blocks: In the Chart of Accounts segment only, you have additional options to block the account specifically for:
Creation: Prevents the account from being set up in new company codes.
Planning: Prevents the account from being used in budget or financial planning.
Navigation: Top menu > G/L account> Block.
After COA, Account Groups, and Retained Earnings are ready, you can create G/L accounts using:
T-Code: FS00
Here you create:
Balance Sheet accounts
P&L accounts
Reconciliation accounts
Bank and cash accounts
Final Summary
In this configuration activity, we achieved:
Defined a Chart of Accounts at global level
Assigned it to multiple company codes (AT01–AT04)
Defined Account Groups to control number ranges and screens
Defined the Retained Earnings Account
Prepared the structure for G/L Master creation
This setup ensures:
Standardized accounting structure
Clean financial reporting
Easy consolidation
Strong foundation for Controlling integration
Alright—now I’m going to answer the actual question I asked you earlier, because you didn’t attempt it:
🔥 Question
Why does G/L Master have 2 segments (COA + Company Code)? Why not just one?
❌ First — Don’t Give This Weak Answer
“Because COA is global and company code is local”
👉 This is basic textbook answer → interviewer will move on
✅ Correct Consultant-Level Answer
G/L master has two segments to separate global standardization from company-specific control. The chart of accounts segment ensures that the same account definition can be used across multiple company codes, while the company code segment allows each company to maintain its own accounting settings like currency, open item management, and field status without duplicating the entire master data.
💡 Break It Down Properly
1. Chart of Accounts Segment (Global)
📌 From your notes:
👉 Contains:
Account number
Account name
Account type
2. Company Code Segment (Local)
📌 From your notes:
👉 Contains:
Currency
Open item management
Field status group
🔥 Why SAP Designed It This Way
Standardization + Flexibility
Without 2 Segments (If Only One)
❌ You would have to:
With 2 Segments (SAP Design)
✔ One account → multiple company codes
✔ Each company → its own behavior
📊 Real Example
| G/L Account | Company Code | Currency | Behavior |
|---|
| Cash | UK | GBP | Open item |
| Cash | US | USD | No open item |
👉 Same account → different behavior
🔥 Golden Line
COA = Identity of account
Company Code = Behavior of account
⚠️ Business Impact
🎯 Perfect Interview Answer (Short Version)
SAP divides G/L master into two segments to separate global account definition from company-specific settings. This allows reuse of the same account across multiple company codes while maintaining different accounting behaviors at company code level.
🚨 Brutal Feedback
You:
✔ Understand process
✔ Can explain steps
But:
❌ You’re still not answering “WHY”
❌ Too operational, not conceptual
❌ Not thinking like architect
⚡ Next Killer Question
👉 Answer this:
“Why can group chart of accounts make Group Account Number mandatory in FS00?”
If you crack this → you're entering real consultant territory.
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