GL configuration change

Hello,
Original setup in our company was that Balance Sheet Accounts have no cost center (the field ‘Business Unit’ for those accounts contains only the company code)
I would like to know if it is possible to change this setup, linking balance sheet accounts with different cost centers, like for the P&L accounts.
Consider that we have already 7 years of historic data, AAIs setup according that design, etc..
Thanks in advance
Charles Perez
[email protected]

Charles -

What you have setup now is "standard" -- one balance sheet per COMPANY and the balance sheet business unit number = company number.

For financials - this type of setup is essential because of the way the financial Automatic Accounting Instructions (AAIs) select which account numbers to use. For example - the default bank account AAI (PBxxx) will select only one account per company (regardless of how many bank accounts are actually in your chart of accounts). Some AAIs give you the option of leaving BU blank and it will default the business unit from the transaction (but not ALL the AAIs will do this).

Could you please clarify WHY you would like to do this? If these cost centers have a legitimate balance sheet that they need to maintain, then they should probably be setup as their own companies in JDE (you can always consolidate multiple companies for reporting). If that is what you want to do - then here is a high level overview of the process:

A. Verify all integrity reports are clean
B. Backup your data
C. Setup your new company numbers
D. Add your new "balance sheet" business units (and accounts)
E. Change the company numbers on your PL business units so that they are correct
F. Run the update programs (let me know if you need a specific list)
G. Change your AAIs accordingly (and verify intercompany constants)
H. Re-run all your integrity reports (make sure they are clean)
I. Run some test financials and validate data
J. Enjoy!

Regards,

Julie McKnight

We have approx 20 different Business Units in our Company which have to have their own Balance Sheets. We have accomplished this by ensuring all entries to the balance sheet accounts bear the right Business Unit in the Subledger field. Flex accounting is very helpful for this and we look forward to a newer upgrade when Flex Accounting will work for the II series of transactions ( e.g. II, ID, IW, PI etc). We use Simple Balance Sheet with Data Selection on the Subledger field. It runs very quickly and generates the desired information for each Busines Unit.

Thanks Pjoh for the answer.
The problem is that, with your solution (using subledgers), we can no longer use the subledger functionality to do accounts reconciliations.
Is that correct ?
Thanks and regards

Julie,
Thanks a lot for the answer.

The reason why I want to do this is to keep the tracking of assets, inventory, liabilities (balance sheet items) by cost center (divisions of different industrial activities, such as for instance food inventory, non food inventory, beverage, etc.).
How do companies normally fulfill this need in JDE ?

Thanks again and reagrds

Rciardo

For items like Inventory, it is common for those accounts to exist at a cost center level. Same is true for many other balance sheet accounts -- except where your Financial AAIs would cause a challenge (bank accounts, trade accounts, etc.).

Make sure that your Balance Sheet reports pull by account range & company (not just by balance sheet business unit). Also, you will need to review and adjust your distribution AAIs to get the money to the right accounts.

Probably the biggest deciding question is whether each of these cost centers should balance on their own? Do you expect there to be intercompany entries between them to keep them in balance? If so, then they should become companies.

Hope this helps!

Julie McKnight