3 Replies Latest reply on Jan 8, 2013 12:33 PM by 983522

    Supplier as a segment in COA

    Anuj Singh 28

      We want to use Suppliers as one of the segments in designing our COA. To implement this, we are exploring to use Standard value set based on PO_VENDORS as the COA Value Set. This will enable to use the supplier number as Segment Values in COA. It will be helpful if one can provide inputs/case studies/discussion/notes on the same.
        • 1. Re: Supplier as a segment in COA

          Technically the approach you have taken for making the suppliers details available in the COA segment is fine ...
          Functionally, what is the need to do so ...?
          Suppliers are not integral part of organization ..
          There is no reporting requirement by suppliers are required ....
          There is no value addition because of this segment, as there is no equivalent flexfield qualifier available for the same ...
          By capturing suppliers information on every transaction, every accounting entry, every adjustment, you are increasing the data that is being collected and it has direct impact on processing and would case potential performance issues ... Hardware requirements should allow such scalability as well ...
          Why Payables Module alone was unable to satisfy the requirement ... if there are few modifications required, it can very well be taken care in the payables module ...
          The accounting entries generated at the subledgers are transferred to payables, which cases duplication of data, that is why subledger does not transfer transaction data to General ledger it only transfers accounting entries ... if the accounting entry again contains the subledger data, its clearly redundant to have a subledger in first place....
          Having said all that, if all or majority of the transactions are supplier focused and you are not using subledgers (only General Ledger) or your requirement cannot be met in payables module nor it can be customized .... then you can go ahead with this approach ....

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          • 2. Re: Supplier as a segment in COA
            Kashif Manzoor
            What is the business justification to use supplier no as segment in COA ?
            How you will control duplication of suppliers which is very common in number of organizations. Personally I haven’t heard any COA with such segments
            • 3. Re: Supplier as a segment in COA

              Having a supplier segment in COA is doable but it is not recommended, for this kind of information i.e. supplier or customer ERPs have introduced subledger concept. Subledgers help minimizing the length of chart of account.

              Prior to subledger concept people used to have only one module, which was customized or homegrown GL and every information was captured in that, i.e. earlier there were customers receivable accounts in GL,suppliers liability accounts in GL. Nowadays only one or two recievable accounts in GL are defined, customers are defined into receivable module and GL main receivable accounts are mapped to customers. Same way only one or two liability accounts are created and suppliers are created in payable module and liability accounts are mapped to suppliers.

              Conceptually in main ledger you keep only accouts and combinations which you want to report in GL only. If you open that door some of your standard reports will become very lengthy and it will impact productivity and in the long run say after 2 to 5 years your system will gradually slow down in responding to requests and reports will take longer times.


              Edited by: 980519 on Jan 8, 2013 4:32 AM
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