Product Tip Tuesday: How Does My Chart of Accounts String Fit into Adaptive?

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Your chart of accounts provides a picture of the financial health of your business. It can be as complex and detailed as your company needs dictate.

Most companies use fields in the chart of accounts string for different purposes. Typically, one field is used for Department and another for Account, but there are often additional fields for Entity, Location, Project, etc.

Watch the webcast, “How to Avoid Three Costly Reporting Mistakes”

Consider the following account string below as an example:

EntityLocationDepartmentAccountProject

Entity = North America, EMEA, APAC, etc.

Location = US, UK, Germany, France, etc.

Department = Sales, Marketing, Finance, HR, etc.

Account = Salaries, Payroll Taxes, Benefits, Office Supplies, etc.

Project = Project A, Project B, etc.

In Adaptive, each of the above items must correspond with specific levels, accounts, and dimensions. Let’s define each of these three.

Levels

The level tree is used to hold a company’s organization structure. The Entity, Location, and Department fields all fall into this section. The level tree can be tiered as many levels as needed, which allows it to handle multiple COA fields. It’s important to remember that all fields must have unique names.

Adaptive Insights, cloud cpm software, corporate performance management, business budgeting software, budgeting and forecasting, visual analytics, financial reporting software

General Ledger Accounts

The GL accounts section is where you’ll find the Account field. We recommend you add rollups to your accounts so you have natural subtotals. We also recommend that you mimic the most common row layout of your P&L and Balance Sheet reports.

Adaptive Insights, cloud cpm software, corporate performance management, business budgeting software, budgeting and forecasting, visual analytics, financial reporting software

 Dimensions

A dimension is a sorting and reporting device, or an attribute with a list of possible values. Dimensions can be used in a variety of ways, such as tagging and viewing data in different groupings. In our sample string, Project is a dimension with values rolling up to it.

Adaptive Insights, cloud cpm software, corporate performance management, business budgeting software, budgeting and forecasting, visual analytics, financial reporting software

Watch the webcast, “How to Avoid Three Costly Reporting Mistakes”

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