ERP - GL - Chart Of Accounts

Segments in General Ledger

 Segments are dimensions used to represent an account in a financial system. A company can have anywhere from 3 to 30 segments, with each segment representing a specific type of account.

1. 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.
2. Second Segment: This represents a business unit or department within the company. Examples include Sales, Administration, Finance, and Procurement.
3. 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

1. Intercompany Segment
2. Local Use Segment
3. Management Segment
4. Primary Balancing Segment
5. Secondary Balancing Segment
6. 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.