1. Financial Management Fundamentals Implementation Guide
  2. Understanding Chart of Accounts Revisions

Understanding Chart of Accounts Revisions

After you set up your chart of accounts, you might need to add, revise, or delete accounts for various reasons. You might need to add accounts to your chart of accounts as your business grows. You might need to revise accounts to make the levels of detail, posting edit codes, and descriptions consistent across all business units. Or you might want to delete accounts that were created in error.

If you use an account for adjustment entries only, such as journal allocations or reburdening transactions, you can set a flag on the account to only allow adjustment entries to be posted to the account. To identify the document types that are acceptable for adjusting entries, you set up codes in UDC table 09/AA. Only transactions with those document types can be posted to the account. This enables you to close an account to all transactions except adjusting entries.

Assume that you set up account 5.8720 to allow adjustment entries only and you set up codes for XX (reburdening entry) and JA (journal allocations) in UDC table 09/AA. You create a journal entry (document type JE) for account 5.8720 and try to post the entry. The system will issue an error message because account 5.8720 allows adjustment entries only. If you change the document type on the entry to XX or JA, the system will post the entry, assuming all other posting criteria is met.

The Adjustment Entry check box or field appears in these programs:

  • Account Master (P0901)

  • Account Master Search (P0901S)

  • Account Master Search (Return Account ID) (P0901SA)

The Adjustment Entry check box also appears in the Business Unit Master program (P0006). You can specify that a business unit and all associated accounts within the business unit allow adjustment entries only.

See Understanding Business Unit Setup.

Note: Verify that the business unit, object, and subsidiary are accurate for each account before you enter transactions. To ensure the integrity of your chart of accounts, you can set the Security processing options for the Review and Revise Accounts program (P0901) to prevent the object and subsidiary fields from being changed if balances exist in the F0902 or F0911 table. If you use an alternate chart of accounts, you can use the Security processing options to prevent the Category Code 21–23 fields from being changed if balances exist in the F0902 or F0911 table. It is recommended that you restrict access to these processing options so that your chart of accounts is not inadvertently changed.