Chart of Account
Posted: 19 February 2008 07:32 PM
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Hi all,

I need to design a COA that will capture financial information and performance of a multi-national organisation operating in Europe, Africa, North America, Asia.

Europe has 6 countries and 15 cities

Asia 4 countries and 7 cities,

Africa 4 countries six cities

North America 2 countries and 10 cities

Report will based on continent operations, such as Europe, Asia, Africa and North America

Report will also based on countries and cities.

Remember each country is under one continent while many cities are under one country.

Pls could anybody advise on how I should approach the COA


Regards


Yemfola

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Posted: 08 May 2008 07:35 AM   [ # 1 ]
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You need to consider not just the countries but the legal entites as the LE would have to produce local statutary reports.  You should use your balancing segment value (BSV) to represent your LE and if city really does mean something maybe have a segment for that too, like a cost centre (?).  I would also advise having an Intercompany Segment if you are a global org you’re going to have a lot of intercompany I expect.

Take a look at these blog posts for further information and examples

http://davidhaimes.wordpress.com/2007/11/21/how-do-i-define-my-legal-entities/

http://davidhaimes.wordpress.com/2007/12/11/can-i-assign-an-operating-unit-to-2-legal-entities/

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Posted: 09 July 2008 05:57 AM   [ # 2 ]
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In addition to Davids suggestion, you can have a location segment too with a Parent Child relationship for Continent-Country-City. I am assuming that a group of Balancing Segment Values (which will be associated with the Legal Entities) could have operations in multiple cities within the same country. Usually there would be a new Legal Entity ( and hence an new Balancing Segment Value) associated with operations out of a country. Other segments in your COA will be dependent on the accounting and reporting requirements. The type of operations the organizations would do could also determine if you can do with only one COA or you need multiple COA. Although you can have upto 20 segments it is generally considered to be a bad design if your COA segments are about 10 or above

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