Segment Category - Parent>Child Hierarchy


For those of you that have segment categories defined, how would you setup a basic structure such as Asset > Current Assets > Cash?

  1. Is “Asset” the Parent Category of “Current Assets”, and “Current Assets” the Parent of “Cash”?

  2. Or would categories “Current Assets” and “Cash” both just show “Assets” as their parent category and you rely on sequence to determine where they go on reports?

Any help is appreciated

Thank you!

Peter, I would normally use option 1. There are other categories such as Inventory, AR, prepaid expenses under current assets. Using a parent of Current Assets gives me a subtotal of these categories.

something like this example: Balance Sheet Example | AccountingCoach

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Thanks Bryan - Was thinking that as well. Appreciate you replying.