Many companies are acquiring, merging or even consolidating, which means changes to their charts of accounts.
There are many points to consider before you tackle this projects, such as:
- What is the expected business value outcome?
- Administrative - Will this be difficult to maintain?
- Compliance - Consider local and international accounting standards.
- Daily use - Will the accounting staff understand the changes?
- Will the changes return measureable benefit in terms of expense control and more accurate reporting?
- What is the time frame to implement the task?
- Is this a long term or short term plan?
- Implementation / testing time.
- Internal documentation updated?
- Staff training.
- What additional man hours are needed to accomplish this effort in terms of planning, implementing, testing and training?
Once you have determined that the change is needed, here are a few things to consider as you embark on the project:
- What changes are expected to the chart of accounts?
- How many companies?
- How many business units per company?
- Do you need to track divisions?
- Consider special reporting requirements:
- Account Structure - Does this remain the same for BU, OBJ and SUB?
- Level of detail - Do you need additional layers for reporting?
- 3rd account number - Are you importing data from an acquisition and want to track previous account numbers?
- Is there a need to group business units or accounts using Category Codes?
- Is there a need to track detail specifics that make use of subledgers and /or enhanced subledgers?
- Is there a requirement to follow IFRS – International Financial Reporting Standards?
Tips for a smooth project:
- Create a project plan. This is a must!
- Create a Master Data Spreadsheet.
- Consider what tools are already provided in JD Edwards World.
- Do you have custom programs?
- Create a test environment to test prior to go-live.
- Set a realistic go-live date.
Finally, here are a few Knowledge Documents to review on My Oracle Support to assist:
- How to Standardize the Chart of Accounts (Doc ID 984333.1)
- Global Changes to Business Units, Object Accounts and Subsidiaries (Doc ID 627074.1)
- Changing the Company Number on Business Units (Jobs) and Accounts (Doc ID 626863.1)
- How to Transfer Amounts (Detail and Balances) to Another Account (Doc ID 15578184.1)
- Overview of the International Financial Reporting Standards (IFRS) functionality within JDE World (Doc ID 1296548.1)
- Release A9.3 Introduces Enhanced Subledger Accounting and Reporting (Doc ID 1451614.1)
- FAQ: Account Master (F0901) and Chart of Accounts (F0909) (Doc ID 972513)
Remember, if you have questions unique to your chart of accounts needs, or any general question, post your questions on the JD Edwards World Community for a quick response from Oracle experts, or to get input from other customers.