What is meant by group account?

What is the purpose of group account?

The purpose of group accounts is to report the results and financial position of the businesses in a way that makes them readily comparable, even though they have different legal structures.

What is group account in financial accounting?

Group accounts are prepared in accordance with the substance over form concept. While the parent and subsidiary are separate legal entities, group accounts are prepared as if they were a single entity. The preparation of group accounts is a bit like preparing a single set of accounts for my marriage.

What is an account group in SAP?

Definition. The account group is a summary of accounts based on criteria that effects how master records are created. The account group determines: The number interval from which the account number is selected when a G/L account is created.

What do you mean by Accounting?

Definition of accounting 1 : the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman. 2a : work done in accounting or by accountants.