Chart of Accounts Features and Functions
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Chart of Accounts Setup
The most important step in the set up process is defining the chart of accounts, because it forms the basis for financial reporting. Care must be taken to describe not just the business as it exists today but how it might exist in the future, and to include all possible views of an organization without making the chart of accounts so large that data input speed is decreased and the chances for inaccuracy are increased.
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GL Account Code Setup
This category considers accounts which are different from standard posting accounts.
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Major Structures Setup
Rather than attaching a reporting unit (such as a department) to the chart of accounts itself, some users might want to define the reporting units in an entirely different function.
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Valid Posting Accounts
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Prepaid Expense Tracking
All products offer depreciation tracking applications or functions. But a system may also support a similar function for identifying each prepaid expense item and the period over which it is being expensed, and then calculate the appropriate expense across each period.
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Processing Allocations
Most larger organizations contain any number of units whose function is to support other groups. This question is designed to identify the relative level of sophistication of a product when it comes to allocating costs to other reporting units.
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Allocations (Formula Basis)
One of the most effective ways of allocating costs is through using what can become fairly complex formulas to measure activity or some other factor (or groups of factors) by which costs can be allocated rationally. These criteria are designed to identify the complexity of the formulas used by each product to allocate costs. Allocation formulas are based on each of these criteria.
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GL Setup Features and Functions
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