Account Structures

This section describes how the Define Account Structure function operates, how to work with multi-accounts, how to sort accounts and the options you have for locking the accounts.

Accounts are one of the foundations for all processes in IBM® Controller. When you define an account, you can enter details about, for example, intercompany balances, the conversion method to be used to convert the account, different reconciliation checks between accounts and if the account is to be summed up to other accounts. The relevant codes are described below.

Expand Accounts

All base accounts with underlying movement accounts are displayed in the accounts list as a folder with a plus sign. These base accounts can be expanded to show the underlying movement accounts. Even if a movement account has been changed manually, its connection to the base account will still be shown in the tree structure.

Color Coding

If accounts are shown in red, it means that they are summation accounts.

Sort Order

When you create a new account it appears in the accounts list below the currently selected account. You can change the sorting order of the accounts later on the Reorder tab.

Account Types

When defining an account you specify a code for the account type the account belongs to. The account types determine whether the account is a main account that should be included in the total reconciliation or whether it is a statistical account.

The table shows the codes that are used and what they represent:

Table 1. Account type codes
Code Account Type

A

Assets

L

Liabilities

E

Equity

I

Income

C

Expenses

R

Statistical account: debit balance sheet account

S

Statistical account: credit balance sheet account

T

Statistical account: debit profit and loss account

U

Statistical account: credit profit and loss account

Balance Control or Not

  • The codes A, L, E, I and C are main account codes which are used for Balance sheet and Profit and Loss accounts to enable balance control when you enter data. Equity and Liabilities have different codes to enable the report writer to easily calculate variance controls. From the company's point of view, an increase in equity is positive, while an increase in liabilities is negative.
  • The codes R, S, T and U are used for other accounts, such as a number of employees account. These statistical accounts are not included in the balance control.

Codes for Intercompany Accounts

When defining an account, you specify a code for the accounts to be used for intercompany accounts. The codes define things such as whether a transaction currency has to be entered.

The following table shows the available codes for intercompany accounts:

Table 2. Intercompany account codes and descriptions
Code Description
I

Intercompany balances are entered without transaction currency.
J

Intercompany balances are entered with transaction currency.
M

Intercompany balances are entered with percentage margin.
A

Acquisition Calculations

Reconciliation Codes

By specifying reconciliation codes and references to other accounts you determine how a specific account will handle reconciliation of opening balances and between accounts. It is also possible to copy opening balances.

Note: Reconciliation codes should be entered in the specification account and not in the account in the profit and loss account or balance sheet.

The table shows available reconciliation codes:

Table 3. Reconciliation codes and descriptions
Code Function

+

Reconciliation for the same period/actuality +

-

Reconciliation for the same period/actuality -

I

Reconciliation to previous year's closing balance +

J

Copy previous year's closing balance +

K

Reconciliation to previous year's closing balance -

L

Copy previous year's closing balance -

Currency Translation Codes

When defining an account you specify the currency translation code to be used. The currency translation code determines the method to be used to convert currency.

For a list of all the available currency translation codes, see Currency Translation Codes for Accounts.

Decimals

The number of decimals is only defined for statistical accounts. A summation account should not have fewer decimals than the account included in the summation account with the highest number of decimals. The number of decimals for main accounts is determined by the decimals defined per currency code in the Define Currency Codes window. If a statistical account is reconciled against a main account, then the statistical account will be handled as a main account, concerning the number of decimals. This also applies if the statistical account is included, together with the main accounts, in the control tables for the acquisition calculations, intercompany balances and intercompany profit. In the account structure, the Main Connected check box will be selected for such statistical accounts.

Calculation Accounts

Calculation accounts are used specifically to store and perform calculations relating to a range of ratios based on values taken from more than one account. The accounts are handled just like ordinary accounts, that is, they are summed up during consolidation.

For more information, see Calculation Reports.

Advanced Formula Calculation Accounts

Advanced formula calculation accounts are used for calculating and storing financial and non-financial metrics. The calculations are carried out in several steps, where the account definition is the first.

When you define the advanced formula calculation account, the calculation formula is defined directly in the account structure, in the Edit Formula window. Note that advanced formula calculation accounts must be of the type Statistical.

For more information about working with advanced formula calculations, see Advanced Formula Calculation Accounts.

Account Properties

When defining accounts, you can select the following properties:

Table 4. Account properties and descriptions
Property Description
Consolidate Select Consolidate to indicate that the account will be included in the consolidation process.
Sign Change Select Sign Change to if the account is to be handled with reversed sign. The default sign is determined in the general configuration, on the Reconcile tab.
Comments Select Comments to enable the user to enter a comment on a reported value in the data entry window. If this option is not selected, the account will not be open for entering comments during data entry. Summation accounts cannot contain comments.
Mandatory Comment Select Mandatory Comment to force the user to enter comments on this account during data entry.
Counter Dimension Select Counter Dimension to enable the use of intercompany transactions with extended dimension 1. This is useful when the counterpart enters intercompany balances on a different dimension.
Calculation Type Select Calculation Type if the account will be used as a calculation account for key ratios or an advanced formula calculation account. This only applies to statistical accounts. Calculated key ratios can only be saved to calculation accounts. To be able to select Calculation Type, you need to clear Consolidate.

If you select AFC Account, then press Edit Formula to define the function formulas to be stored on the account. For more information about editing formulas, see Define formulas for advanced formula calculation accounts.
Movement Account Movement Account is automatically selected for all accounts that have ever been generated from the Movement Accounts - Generate window. This option cannot be changed manually. You can see that a movement account has been manually changed by clicking on the Overview tab and checking the code under the heading Account Type 2. If the code is C, the account has been changed manually, otherwise it has been generated.
Main Connected Main Connected is automatically selected, and cannot be changed manually.