Segments in General Ledger
- First Segment: This can represent a company
name. For example, an individual may own multiple companies, such as Tata
Consultancy, Tata Motors, and Tata Power.
- Second Segment: This represents a business
unit or department within the company. Examples include Sales,
Administration, Finance, and Procurement.
- Third Segment: This segment indicates
account types. Examples include Cash, Revenue, Payables, Intercompany
Payables, Note Revenue, Unrecognized Revenue, Expenses, and Accruals.
Each of these segments will have
predefined values. For instance:
- Segment 1: 1001, 1002, 1003
- Segment 2: 2001, 2002, 2003
- Segment 3: 3001, 3002, 3003
The account combination is formed
by combining these segments, such as:
- 1001-2003-3001
- 1002-2001-3002
Managing Chart of Accounts
Manage Chart of Account Value
Sets: This task allows you to create value sets for each segment. You can
define attributes such as name, length, and type. We can add the values for these value sets.
Manage Chart of Accounts
Structure: To set this up, select “Manage Structure,” provide a name, code,
and delimiter (e.g., “-”). Then, add the structure by specifying the segment
names, corresponding value sets, and labels using the available options.
- Company: Primary Balancing Segment
- Department: Cost Centre Segment
- Account: Natural Account Segment
Other Available Segment Labels
- Intercompany Segment
- Local Use Segment
- Management Segment
- Primary Balancing Segment
- Secondary Balancing Segment
- Third Balancing Segment
Finally, create an instance of
this structure and deploy it for use. You can use the “Manage Chart of Account
Structure” task to create and deploy the instance.