Understanding a Model Chart of Accounts

To create a model chart of accounts, create one master model business unit that includes the complete chart of accounts or create a model business unit for every business unit type and assign object accounts to it. You can then use these models as a basis for your actual chart of accounts.

By creating a model chart of accounts, you ensure that when you copy the accounts from the model business units into your actual (or production) business units, the accounts are standardized across business units and companies.

Depending on your organizational structure, you can create more than one model chart of accounts. For example, you can create one model for balance sheet accounts and another model for income statement (profit and loss) accounts.

You should create your model chart of accounts using a consistent numbering scheme for your object accounts so that they can be copied across all business units.

After you enter the business unit, object account, and subsidiary information for a new account, you can add a comment, memo, or other text.

Carefully proofread your model chart of accounts to ensure that the descriptions, spelling, level of detail assignments, and posting edit codes are accurate. The model chart of accounts provides the basis for your entire chart of accounts. Revise accounts as needed to correct errors before you copy the model accounts to business units. Copying the model reproduces any errors in multiple business units.