GL Chart of Accounts

• Overview
• Defining and Organising Financial Statements
• Setting Up Individual Accounts
• • Nominals
  • Defining Revaluation Data
  • Creating Management and Analysis Codes
  • Creating Relationships
  • Defining Nominal / Management Code Relationships
  • Defining Management/Management Code Relationships
  • Defining Management / Nominal Code Relationships
  • Manipulating Full Accounts
  • Mini Chart of Accounts
  • Defining Set Codes
  • Suspense Accounts

Overview

The Chart of Accounts is a list of ledger account names and numbers, usually sequenced in the same order in which the accounts appear on financial statements. In e5 GL, assigning account numbers by financial statement classification is not required, but recommended. Determine the necessary statement classifications and then assign each account to its associated classification, regardless of the actual account number.

The Chart of Accounts provides the framework in which e5 GL operates. Set up the Chart of Accounts with the goal of producing financial statements that are meaningful to your business. You can determine the structure and the information presentation of the two primary financial statements: the BS and the P & L statement. The following are the tasks involved in setting up the Chart of Accounts:

• Defining and organising financial statements. Define balance sheet versions along with groups and categories to customise and organise financial statements.
• Setting up individual accounts. Assign individual accounts to groups and categories so that postings to accounts update the appropriate BS and P & L balances. Defining different revaluation accounts for individual accounts allows for re-valuing data at a newer exchange rate.
• Creating management and analysis codes. Create management and analysis codes to define additional sections of the account code based on the account definition.
• Creating relationships. Define specific relationships to control valid combinations of accounts and management codes.
• Manipulating full accounts. Full accounts can be disabled and purged and disabled accounts can be enabled.
• Creating a Mini Chart of Accounts. Create a Mini Chart of Accounts, that represents GL accounts, for convenience in selecting accounts.
• Defining set codes. Group accounts together for inquiry purposes.
• Submitting the GL Set Code Rebuild process. The GL Set Code Rebuild process rebuilds the list of path keys for a set code based upon the access code associated with the set code selected.

If using the Dynamic Balance Sheet, the system can reclassify an account from one group and category to another group and category, when the update is not expected. For example:

Nominal 1000 has a group of `A' and Category of `01' and a Dynamic Group of `L' with a category of `02' and usually has a debit balance.

If using the Dynamic Balance Sheet, the system maintains two balances for Group/Category A 01. The Dynamic Balance Sheet and Standard Balance Sheet balances are different and are maintained separately. Standard Balance Sheet values are maintained by the data entry processes. Dynamic Balance Sheet values are updated when the balance rebuild processes EP2, EP3 and EP5 are run. Data entry processes do not update dynamic balances. To update a dynamic balance related to a group or category, run process EP2. To update a dynamic balance related to a specific structure, run process EP3.

Defining and Organising Financial Statements

Groups and categories determine the structure of the two primary financial statements: the Balance Sheet and the P & L statement. Define and amend groups and categories to customise the headings and subheadings, respectively, of the Balance Sheet and Profit and Loss financial statements.

Up to 49 alternate sets of both groups and categories can be created for management reports and inquiries if Alternate Balance Sheet is checked on the Company Controls screen MEAB. Differentiate each set of groups and categories with a unique, user-defined code called a balance sheet version code. See Balance Sheet Controls screen MEAU for more information on creating balance sheet controls.

When creating nominal codes, specify the group and category to indicate where the nominal code balance appears across the two primary financial statements.

If using a Dynamic Balance Sheet, specify on the Company Controls screen MEAB, which groups and categories can be created specifically to hold the swing balances. Swing groups are not designated differently than other groups and categories. When specifying a group as Dynamic Group on the Currency Group Category format of the Nominal screen MEBB, the group is tagged as a swing group. 36 groups can be defined.

Setting Up Individual Accounts

Individual accounts are attached to groups and categories so that postings to accounts update the appropriate Balance Sheet and Profit and Loss  balances. Different revaluation accounts can be defined for individual accounts to re-value data at a newer exchange rate.

If using a Dynamic Balance Sheet, specify the normal group/category and normal balance type, debits or credits, for the nominal. Also, designate the dynamic group and category to hold the nominal balance when the balance on the nominal is not the normal type. For example, if account X's normal balance is debit but account X has a credit balance, the system holds the credit balance in a specified dynamic group/category.

Specify where a nominal should appear in different sections of a financial statement by using multiple balance sheet versions. If using multiple balance sheet versions for groups and categories and there are any versions with Nominal Mandatory checked on the B.S. Controls screen MEAU, a special format of the Nominal screen MEBB can be accessed to assign the group/category for that balance sheet version. If Nominal Mandatory is checked, then accessing the special format of the Nominal screen MEBB is optional.

You have the option to purge nominal codes that do not have balances. Purging nominal codes marks the nominal codes for deletion. Submit the GL Deferred Purge process EZ1 to physically delete the nominal codes from the database.

See Background Processing for more information on submitting processes.

Nominals

Define the individual accounts used within a company. Each account attaches to a group and category within the BS or P & L statement. As a result, postings to an individual account update the applicable BS or P & L balances.

Defining Revaluation Data

Currency revaluation maintains data at the current exchange rate. If you request currency revaluation, currency revaluation details can be added or amended for a specific account. Any difference as a result of revaluation, posts to the revaluation account specified on the Revaluation Data screen MEBC.

Before adding revaluation details, set up the following:

• A currency relationship on the Currency Relationship screen MAGC.
• An account on the Nominal screen MEBB.
• A relationship between an account and management code on the Nominal/Management Code Relationship screen MEBF.

Any difference as a result of revaluation is posted to the revaluation account, the loss account or the gains account specified on the Currency Revaluation Accounts screen MAGM, unless a specific nominal is specified on the Revaluation Data screen MEBC.

Creating Management and Analysis Codes

Create management and analysis codes to define additional sections of the account code of the complete GL account structure based on the account definition. There are different identifiers for management and analysis codes:

Management code sections are represented by A - J

Analysis code sections are represented by 0 - 4

Section identifiers are entered and displayed at Code ID. In each management and analysis section, enter management or analysis codes.

The screens display Management Codes, not Analysis Codes, in the headers and fields, until you enter an analysis code identifier.

If using ICA, add management codes once ICA has been "switched on" at the GL Company Controls screen MEAB. To ensure the integrity of the ICA structure, first delete management codes from the ICA structure on the Intra Company Account screen MECJ and the Path Key Definition screen MECH before deleting the codes from the Chart of Accounts. Then run the normal structure maintenance processes and Chart of Accounts deletion jobs to process the amendments.

Ensure that when management codes are deleted from the ICA structure, they are subsequently deleted from the Chart of Accounts. Otherwise, the ICA structure will be compromised.

Optionally, you can purge management and analysis codes that do not contain balances. Purging management and analysis codes marks the management and analysis codes for deletion. Submit the GL Deferred Purge process, EZ1, to physically delete the management and analysis codes from the database.

See Background Processing for more information on submitting processes.

Creating Relationships

Relationships between accounts and management codes are created and amended by using either of the following methods:

• If Nominal Relation contains M on the Nominal screen MEBB, first create a nominal/management code relationship before using the nominal/management code combination. Optionally, enter the management codes that can post to the nominal. For example, you can control which locations can post to Accrued Bonuses.
• If Nominal Relation contains A on the Nominal screen MEBB, the system automatically creates a relationship upon posting to the nominal/management code combination. Optionally, enter the nominals that the management code can use. Prior to postings, a warning appears informing that a relationship does not exist but will be created. After the entry and posting are completed, the relationship is created.

Set up the following before setting up a nominal/management code relationship:

• An account on the Nominal screen MEBB
• A management or analysis code on the Management/Analysis Code screen MEBE

Defining Nominal/Management Code Relationships

Nominal to management code relationships can be created and amended. Either enter the management codes that can post to the nominal or enter the nominal codes that the management code can use. If using the second method prior to postings, a warning appears informing that a relationship does not exist but will be created. After the entry and posting are completed, the relationship is created.

Defining Management/Nominal Code Relationships

Management to nominal code relationships can be created and amended. Either enter the management codes that can post to the nominal or enter the nominals that the management code can use. If using the second method, prior to postings, a warning appears informing that a relationship does not exist but will be created. After the entry and posting are completed, the relationship is created.

Defining Management/Management Code Relationships

Management to Management code relationships can be created and amended. Enter the management codes that can post to the management code you are using.

Manipulating Full Accounts

Full accounts can be disabled or purged without disturbing the individual sections of the account code. Optionally, enable a full account that was previously disabled.

Before using the Full Account screen MEBI, first set up an account on the Nominal screen MEBB and then a relationship between a nominal and management code relationship on the Nominal/Management Code relationships screen MEBF.

If the Full Account option is required, click the Delete Check box on the GL Company Controls screen MEAB. Otherwise, the system can still post to any disabled or purged full accounts.

Mini Chart of Accounts

You can define short codes, up to six characters, that relate to GL accounts. Then enter these short codes, instead of lengthy GL account numbers, to quickly select an account. For example, assume that you have a 20 character account code defined that represents a gasoline and oil account. You can define a mini chart of accounts code named gas to represent that account. The Mini Chart of Accounts (MCA) code is shorter and easier to remember.

Defining Set Codes

A set code is a method of grouping accounts together to inquire upon a set of accounts. For example, you may routinely deal with several accounts which are not contiguous (e.g. NOM1 NOMA and 0001). To enquire on balances for these accounts you would need to enter each separately and view individual details. However, by combining these into a single set code and using the set code to specify an enquiry, details of all the nominals can be seen on one enquiry.

Set codes require maintenance and a set code rebuild re-build process is provided to aid in this process (Process EBX)

Suspense Accounts

As well as being able to set Suspense Accounts up against the Control accounts at Company level it is also possible to define different Suspense accounts to be used down at Path code level. It is possible, using mask processing to utilise different suspense accounts depending upon certain parts of the account key.

See also

General Ledger Home Page