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.
Consider the following account string below as an example:
Entity – Location – Department – Account – Project
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.
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.
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.
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.