Project Study - Company Definition

Project Study

Business Requirement
Creation of the new business model, based on the Corporate Strategy aimed at diversifying the business. Currently the Business is one entity which has to be divided in to three. Oracle ERP has to be designed so that a corporate consolidation can be achieved.

Business Solution
Incorporate flexible and expandable chart of accounts

• focused to current mode of business requirement
• anticipating future requirements

Chart of Account Model

The Chart Of Accounts is based on the assumption that all companies have the same Accounting Segment, Currency & Calendar requirement. Accounting structure will use the Company segment as the balancing segment. Each company could have its own range of accounting segments. No segment will be used to capture values of multiple dimensions, eg. Department segment will not be used to capture values identifying Location. Each segment will have a unique meaning.

 Chart of Account Structure

 The chart of accounts will be defined as specified below.

 Company

This segment uniquely identifies each individual Entity in the Organization structure. This segment also will be used as the balancing segment.

Department
This segment uniquely identifies each individual department. Departments could be either common to companies or independent. A Numerical Value identifies a specific Department. Alpha numeric parent values will be used as group level identifies.

Location
Location identifies the location of the business activity

Natural Account
An account is used to identify a General Ledger transaction for a specific purpose. Accounts are the fundamental building blocks of Financial Transactions. Transactions are always associated with one or more accounts.

The Natural Account structure has to be designed on a hierarchical model consisting of parent, child and rollup groups.

Sub Account
A sub-account is an optional part of the accounting string that allows tracking of financial activity within a particular account. Sub-accounts are often used to help track numbers when several different activities may be funded by the same account. For example a marketing campaign can constitute of multiple marketing expenses. Since all of the activity is still captured within a single account, it is easy to report on the finances of the overall account. Sub-Accounts acts as an attribute of the account to which it reports The Sub account will constitute list of values that would be defaulted based on the Natural Account value.

 Project

The use of this code allows tracking of Transactions on project basis. This allows financial reporting based on projects.

Inter Company

This segment will be used to identify transaction used as intercompany transactions

Future
This segment is maintained for future expansion if any.