+2
Hi Team,
We have Client which has its Branch/entities across globe and having one entity in India as well. the main head office/group company is in France.
Do you foresee any requirement to have a dedicated Code Part for Local COA (Chart of accounts) for Indian Entity in addition to Code A which is for Group COA when we have global mapping to be done. Though this is more on Client business but any has any related expertise to guide on what can be good practice.
+11
Hi,
besides using a codepart which is a waste in my opinion, you can use e.g. an attribute on the account.
So for reporting purposes you can create reports based on the attributes.
Another possibility is to use account structures. You can name the nodes in the structure and put the mapped global accounts underneath the node.
Both proposed way are very flexible as the attribute or the node from the structure can be changed and the result of that change will be reflected in the reports (also for historical data).
In case you use a codepart the information is fixed in the voucher. I case of a codepart there will be a need to repost the items. Or worse if a subledger as AP, AR, or fixed assets is affected the “original posting string” will be used (with the old codepart) when it comes to payments, rollbacks or other transactions.
Regards
Ralph
+16
Whilst I agree with the above from Ralph, this will probably depend on how different the group CoA is to the local chart of accounts and it’s hard to advise without knowing the detail.
IFS does support the use of a different CoA used with the internal ledger, but this involves a lot of extra setup (all posting controls have to be done for the group accounts and local accounts). But in some scenarios, that is the only way forward.
Hi,
I have a good deal of experience with this.
Often times the attribute concept will not work. For example, post an entry to ABC account and XYZ Department, local account must be different.
Or Corporate account is 1 account yet local need more.
In many cases, you can only do this as a separate code part.
Ideally, try to use the account and attribute, as first solution, but don’t be surprised if that will not work, and you may need a local account as a code part.
In most international solutions, I try and reserve up to 2 code parts for local use age. One of those can be local account.
Best regards,
Thomas
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