Understanding Flexible Accounting for PIS/PASEP and COFINS Tax Credits (9.2 Update)

You can use Flexible Accounting to make the journal entries more meaningful by making the account numbers flexible during a transaction. By building the account numbers dynamically, the chart of accounts segment information (such as business unit and subsidiary) can be captured. The segments are used to aggregate the financial activity recorded in a business unit or subsidiary.

For example, if you have an account maintained for a specific branch/plant for a particular item, whenever a receipt is created from a vendor, you can perform flexible accounting with business unit and item as subsidiary.

For example, if branch plant is 30, Object account is 4111, and the item type for the item number 230 is RM, the account is formed as 30.4111.RM. When a transaction is performed with this setup, 30.4111.RM must exist in the account master (P0901).