Is it correct that each company code has its own general ledger when using the same Chart of Accounts (COA) in SAP S/4HANA?

In SAP S/4HANA, each company code is indeed designed to maintain its own separate general ledger, even when utilizing the same Chart of Accounts (COA). This structure allows for financial activities and reporting to be managed distinctly for each company code while still having a consistent framework using the common COA.

By implementing this approach, organizations benefit from tailored financial reporting and control, as the general ledger captures all transactions and balances specific to that company code. This is vital for businesses operating multiple legal entities or divisions, as it aids in compliance with local accounting regulations and provides the necessary granularity in financial reporting.

The capability for consolidated reporting (as alluded to in one of the options) exists but is a function of the overall system design — the general ledgers for each company code would still remain distinct and separate within the system framework. Thus, while consolidated reporting is a valuable feature for overall business insights, it does not negate the individual ledger structure established per company code.

Overall, the definition of a unique general ledger for each company code enhances financial transparency and accountability while maintaining the flexibility required for managing varied business operations.