Companies can summarize information in a variety of ways, such as by organization level, product line, geographical location or taxable entity. Each company can define a variety of reporting structures to support its reporting requirements. Each structure gives a different view of the company’s financial data. Examples of structures are:
- Chart of accounts
- Alternate chart for regulatory reporting
A reporting structure is like an organization chart. Every box on the chart is assigned a name, such as DIVISION-A. In a company’s chart of accounts, a typical reference name would be ASSETS.
The reference names make it easy to specify entire groups of accounts when defining reports or doing allocations. For example, to access total assets for Division A, simply use the names ASSETS and DIVISION-A.
There is no practical limit to the number of reporting structures a company can have defined in the system. Each company can have its own set of structure definitions or can share another company’s structure definitions. A common set of reporting structures can be defined and used by many companies.
Reporting structures provide simplified system maintenance. For example, when organizational or account number changes occur, a simple change to the structure definition normally takes care of all reporting changes, eliminating the need to alter individual report definitions. Structure editing and updating can be performed in online or in batch for maximum responsiveness and efficiency