V8 -- UPDATE -- One for the folks with the green eyeshades: Cha

As promised, here's what we learned/where we ended up with respect to
the questions posed below. Our source was an Epicor iSolutions
consultant who has demonstrated an intimate knowledge of these issues.
We had an opportunity earlier in our implementation to work with them,
so they had proved their capability/credibility in this area to us prior
to this discussion.

"Per our conversion, we're agreed that a two-digit Division and
four-digit Department should not create any particular hardship for a
company using Vantage. In Kaleidescape's case, since we're licensed for
multi-company, this is even more true (since we should not have to
"burn" Divisions to create pseudo-companies....)

We further understand that the "native" reports will simply show all
Chart of Account objects and is insensitive to our segmentation. We will
use the Financial Statement Generator or FRx to produce appropriate
Financial Statements that show/hide detail as appropriate.

We also understand that it is strongly encouraged to maintain parallel
Charts in a multi-company Vantage environment as that makes
consolidations more meaningful/easier due to the fact that the accounts
should describe identical expense/revenue centers in each of the
companies (exceptions to the Cash Accounts, Notes Payable, etc. are duly
noted....)

Lastly, P&Ls are derived from a strict interpretation of the accumulated
Chart-of-Accounts, which is to say that, in some instances, we will need
to create parallel Chart segments for some departments to get their
amounts into the right COGS, GA, etc. buckets. The upside of this is, is
that by doing so, it would provide the ability to generate P&Ls by
department."

This is the chart structure that we're likely to adopt at Kaleidescape:

DIVISION
2 numeric characters

CHART
10 numeric characters w/ three segments <--Note, you need to include the
separator characters as part of the total number of characters for this
"Element"
- 2 numeric characters to describe Categorization of Natural Account
(SALES, COGS, etc.)
- 4 numeric characters to describe Natural Account
- 2 numeric characters to describe Subaccount

DEPARTMENT
4 numeric characters

SEPARATOR CHARACTER
- (Dash/Hyphen character)

Example: 00-65-1200-01-0001


John Sykes
Kaleidescape, Inc.

| -----Original Message-----
| From: vantage@yahoogroups.com
| [mailto:vantage@yahoogroups.com] On Behalf Of John Sykes
| Sent: Tuesday, October 25, 2005 5:12 PM
| To: vantage@yahoogroups.com
| Subject: [Vantage] V8 -- One for the folks with the green
| eyeshades: Chart of Accounts Structure
|
| Hello V-Team:
|
| We're finally at the point in our implementation process where we're
| "starting to cut metal" and actually beginning to throw some
| fundamental
| configuration switches in our production Vantage 8.0
| database. We have
| a number of questions about the Chart of Accounts structure as it
| applies to Vantage that are articulated below. If anyone has strong
| opinions on any of the questions we've posed, I'd appreciate hearing
| from you (but, please, do not feel obliged to weigh-in on the entire
| laundry list if you don't know, care, or have the time,
| etc...I'll take
| what I can get and I promise to report back what we've
| learned in order
| to share the collective wisdom of this group.)
|
| We *THINK* we'd like to structure our Vantage 8.0 Chart of Accounts as
| follows:
|
| DIVISION
| 2 numeric characters
|
| CHART
| 6 numeric characters w/ two segments
| - 4 numeric characters to describe Account
| - 2 numeric characters to describe Subaccount
|
| DEPARTMENT
| 4 numeric characters
|
| SEPARATOR CHARACTER
| - (Dash/Hyphen character)
|
| Example: 00-1200-01-0001
|
| Before we commit to this structure, we would like to understand the
| following items:
|
| 1. Are there any known issues with a two-digit Division segment? i.e.
| Are you aware of other Companies that have actually run into problems
| because they "only" used two digits/characters? Is this a
| natural number
| of characters for Vantage? (does it prefer more/less
| characters for any
| reason, etc.?)
|
| 2. What, if any, are the issues with multiple segments for the Chart
| segment? For example, can additional segments be suppressed when
| generating reports (i.e. so that only the first/primary segment of the
| Chart is shown on financial statements)? Do the pre-built financial
| reports support a multi-segmented Chart automatically (i.e. will they
| properly sum and show/hide detail, etc.)? What are the data-entry
| implications of a segmented Chart? (i.e. will the second
| segment default
| to -00 if only the first segment is provided, etc.) In particular, our
| desire to implement a second segment in the Chart segment is a forward
| looking act that's designed to give us future flexibility as
| the company
| grows. Kaleidescape expects to be a billion dollar company
| and we'd like
| to be thinking about a Chart of Accounts schema that would support an
| organization of this size.
|
| 3. Are there any known issues with a four-digit Department segment? In
| particular, the thrust of this question is, is "Does Vantage
| care/mind?"
| -- This is enough "addressing space" for Kaleidescape -- Any
| downsides,
| with respect to Vantage (or with other customers/companies you have
| known...) to just going with a four-digit Department segment?
|
| 4. In a multi-company Vantage environment, our assumption is,
| is that it
| is desirable/preferred to have all related companies share the same
| Chart of Accounts, e.g. 00-1200-01-0001 for Company A is the same
| division/chart/department as 00-1200-01-0001 for Company B.
|
| 5. For P&L calculations in pre-built financial statements, how are
| Expenses recognized? i.e. Are Expenses simply the sum of all
| transactions in a Chart that is "normally" an Expense? Are
| Expenses the
| sum of all transactions for a Department that is "normally"
| an Expense?
| Or, are both Charts and Departments used to
| represent/designate Expense
| items in the standard Vantage financial statements.
|
| Sincere regards,
|
| John Sykes
| Director, IT
| Kaleidescape, Inc.
| 650.625.6161 O
| 650.625.6101 F
| mailto:john.sykes@...
| <mailto:john.sykes@...>
| www.kaleidescape.com <http://www.kaleidescape.com/>
|
|
|
| [Non-text portions of this message have been removed]
|
|
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