What if Balancing Segment is not needed?
Posted: 12 September 2008 02:48 AM
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As I understand at least two segments are mandatory in the chart of account structure:

1)balancing segment
2) and natural account segment

What if the client does not need a balancing segment.
What if they want to keep the whole ledger balanced (DEBIT=CREDIT) rather than each company within a ledger.

The client is one single company. There no balancing entities in reality.

I dont want to create one dummy company 01 as a work around. As this would cause a noise in data entry.  There is no other segment that could be designated as a balancing segment like Department or Cost Center etc.

This is what we want:

ACCOUNT-UNIT-PROJECT

Any suggestions?

Thanks in advance

Hasan Mir

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Posted: 12 September 2008 03:31 AM   [ # 1 ]
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So what is unit ?  A business unit?  You sure you don’t want to balance by that?

Adding a company segment as your balancing segment and always having it as ‘01’ is probably a good idea to future proof your chart of accounts.  If you acquire another company or decide to split into multiple companies later you will need this and for now having that extra segment doesn’t really do any harm does it?

david
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Posted: 12 September 2008 04:48 AM   [ # 2 ]
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Thanks for a quick reply.

Unit is more of “property units”.  This is a property management company.  This cannot be a balancing segment. DEBITS will not always be equal to CREDIT at unit level.

A dummy company segment (value 01 all the times) will come with a cost of data entry.

Hasan

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Posted: 12 September 2008 06:21 AM   [ # 3 ]
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It’s not really a dummy company value - you have a company, it’s just that you have only 1 at the moment.  The data entry shouldn’t be an issue you’ll be able to default the single company in there.

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Posted: 12 September 2008 09:52 AM   [ # 4 ]
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I guess this is what I will end up doing. Thanks.

However I wonder why Oracle assumes that every implementation would make use of balancing segment.  I know that mostly medium to large scale enterprises use ERP but still that does not mean the each of them will use balancing segment.

Hasan

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Posted: 11 November 2009 08:10 PM   [ # 5 ]
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This is great. I’ll definitely make this a guide. Thanks for sharing it.


Regards,
Raide
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