Example of Defining the Structure for Natural Accounts

Define the structure for natural accounts. The natural account structure is a key flexfield to define the structure for the natural account in the chart of accounts.

The account structure flexfield specifies the structure code for the natural account structure. It indicates the hierarchy of natural account against the local statutory requirement. For example, local government requires that the natural account must have eight digits, the first four digits for the first level, the next two digits for the second level, and the last two digits for the third level. The structure in this case is 4-2-2.

Define the subsidiary account sources based on the chart of accounts. There are three types of subsidiary account sources available:

• Chart of account segments: Segments in chart of accounts except for natural account segment and company segment.

• Third party and employee supplier information: Customers, suppliers, and employees can be taken as subsidiary account.

• Project: A seeded supporting reference populates the project number to be a subsidiary account.

You can specify about 30 subsidiary segments. Subsidiary segment is mapped to subsidiary account sequentially when saving.

Scenario

For example, consider defining the following subsidiary segment mapping as follows:

• Segment 1: Chart of Account Department

• Segment 2: Subledger Accounting Customer

• Segment 3: Subledger Accounting Supplier

You can delete any segment and add a new one. Consider removing segment 2 and adding a new segment as follows:

• Segment 1: Chart of Account Department

• Segment 3: Subledger Accounting Supplier

• Segment 4: Project - Project Number

Save the mapping. The final result is:

• Segment 1: Chart of Account Department

• Segment 2: Subledger Accounting Supplier

• Segment 3: Project - Project Number