COA - Mandatory Segments

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tgs100
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COA - Mandatory Segments

Post by tgs100 »

Generic Discussion Topic
================

What are the mandatory segments in COA and <b>why</b>?

Cheers,
Saravanan
madhusudhan.palla
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Post by madhusudhan.palla »

Mandatory segments are 2

1) Balancing Segment
2)Natural Accout segment

way

we need atleast two segments for entering transactions.
tgs100
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Post by tgs100 »

That is nice...


So you mean cost center is not mandatory?

Even if we have only one company (only one balancing segment value), should we include balancing segment in COA?

Cheers,
Saravanan
hiszaki
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Post by hiszaki »

HI Saravanan

If you have only one company, you need to define 1 segment in the COA related to company.
Some standard function in the application (Forms - requests) define to be group by balance segment so if you not define the balance segment may be couldn't use the standard functions.

Thanks
Hisham
madhusudhan.palla
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Post by madhusudhan.palla »

as per my knowledge, Cost Centre segment is not mandatory.
tgs100
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Post by tgs100 »

Balancing Segment - It is mandatory - System uses this segment to balance the accounting entries for each balancing segment value.
Cost Center becomes mandatory if you use FA module. Many FA reports refers this flexfield qualifier.

Any other views?

Cheers,
Saravanan
stalinvstalin@gmail.com
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Post by stalinvstalin@gmail.com »

HI SARVANAN,


U ARE CORRECET.BECOZ COST CENTRE MEANS A GROUP OF PEOPLE AND MACHINES WORK TOGETHER TO GENERATE PROFITS.

IF WE HAVE FA MODULE THEN ONLY IT IS MANDATROY OR ELSE WE CAN GO WITH 2 MANDATORY SEGMETS.

PLEASE RAISE SOME OTHER DISCUSSIONS SARVAN.THEY ARE VERY HELP FULL.

STALIN.
tgs100
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Post by tgs100 »

Some of the implementations have "Sub Account" as one of the segment in the COA. Sub Account is the Dependant segment of Account Segment.

What is the pros and cons of having sub account in the COA? Under what scenarios/requirements, sub account segment is required in COA?

Cheers,
Saravanan
anu_uma
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Post by anu_uma »

Hi,

As per my understanding and working exp, we can use it if we want to go in depth of tracking the accounts.

As I have worked with the COA as Sub accounts, we have not utilized it in depth and as per my analysis, it has given more issues than helping us. As a Consultant I will not suggest for sub accounts as it is dependent,
I don't think we have to go for sub accounts, we can do the structure of the natural account with 4-6 or more digits based on the depth of required information.

Regards,
Uma
tgs100
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Post by tgs100 »

Good one...Looking for more views/thoughts...

Post your views/suggestions..There is nothing right or wrong in going for only <b>account </b>segment or <b>account + Sub account</b> segments.

Cheers,
Saravanan
karthikeyanp1981
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Post by karthikeyanp1981 »

Hi TGS,

cannot think of a valid justification or a perfect business scenario which would demand a Sub Account segment in the Chart of Account Structure. Even though the sub account is dependant on the Accounting segment, the natural account qualfier only applies to Account segment and not sub account. I am of the opinion, that no point in having segments that does not carry a flexfield qualifier.

Will be pleased like other members, if you can share where exactly the Sub Accounts may come in to use ...

Regards,
Karthikeyan
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