Previous	Next		Contents	Index	Navigation	Glossary	Library

To make effective decisions about your account structure, consider the structure and dimensions of your organization.

   To determine the account structure that best suits your organization:

1. Examine your organization structure to identify how you measure performance and profitability.

You may even want multiple organizational structures to allow views of the organization from multiple perspectives. For example, if you have both regional and country managers, you can set up one segment which is based on "Location". You can use summary accounts to roll up managers from each location to their respective country managers.

2. Visualize each segment of your account as a unit dimension of your business. Combine units that are based on similar dimensions to avoid using multiple segments that measure the same dimension.

3. Identify the functions, products, programs, funding sources, regions, or any other business dimensions you want to track.

4. Determine your reporting needs. Consider the following questions as you begin defining your account structure:

• What information will better help you manage your organization?

• What different ways can you look at your operations?

• What kinds of reports do managers ask for? Product or service managers may want to see a gross margin report for each of their products or services. Managers responsible for a particular functional area, such as the Vice President of Research and Development, might want to see an employee expense report for the entire division.

• What reports you now prepare with some difficulty?

• What reports do need that other financial information systems, such as a revenue tracking system, provide?

• What statistical reporting, such as headcount by division, or unit sales by product, do you want to perform?

• Do you need to perform project reporting?

• At what levels of detail do you produce reports?

See Also

Defining Your Chart of Accounts

Designing Your Account Segments

Defining Accounts

Planning Your Summary Accounts

Designing Your Accounting Flexfield

Designing Your Account Segments

Defining Your Account Structure

Key Flexfields in Oracle Applications