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Chart Of Account & Consolidation

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Posted on by Raheel Shakeel Khan

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Hi Everyone,

I currently have 7 legal entities, each with its own Chart of Accounts, which has led to duplication and unnecessary accounts. I am planning to implement a new shared Chart of Accounts across all entities to standardize the COA and support financial consolidation.

As part of this transition, I would like to understand the step-by-step process for smoothly transferring existing budgets and procurement category posting profiles to the new shared COA.

Could anyone please share guidance or best practices for ensuring a smooth and successful implementation?

Thanks

Raheel

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Dynamics 365 Finance

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André Arnaud de Cal... 301,146 Super User 2025 Season 2 on at

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Hi Raheel,

When you have transactions in a legal entity, it is not possible to change the setting on the Ledger form. Instead, you can consider using the consolidation field on existing main accounts or create new main accounts per CoA.

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Raheel Shakeel Khan 285 on at

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Hi Andre,
Thank you for your response,

I agree with you

However, I would like to understand the following: if I have a budget or procurement category linked to a main account, and I plan to deactivate (or suspend) that account and create a new main account within the same Chart of Accounts, how can I transfer the remaining budget to the new account?

Secondly, if the client requires a shared Chart of Accounts to enable smooth consolidation, I believe it would be necessary to set up a new environment where the standardized COA can be configured for all legal entities. From there, we can migrate relevant data such as AP, AR, Fixed Assets, Project Management & Accounting, etc., into the new environment. Would you agree that this approach would be a productive practice to support effective consolidation and comprehensive financial analysis?

Currently, they have not clear picture of financials due to different COA and main account.

Thanks

Raheel

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Abhilash Warrier 5,426 Super User 2025 Season 2 on at

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Hi Raheel,

Please review the below suggestions –

Review the ledger balance for each legal entity & prepare the template for loading the opening balance.

Review the plan for migrating the open transactions.

You may need to create a new COA and update it in the General Ledger Setup, also you will be required to create new legal entities.

Post-Transaction Changes:
Once transactions have been posted in the legal entity, the chart of accounts cannot be changed. Therefore, it's crucial to plan and configure the COA before posting any transactions.

4. Review the budget utilized and post the revised budgets, for example the GL budget entries.

Hope this was helpful.

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Arvind Bharti 722 Super User 2025 Season 2 on at

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Hi Raheel,

Since you already have transactions posted , recommendations are not to change or update COA for legal entity and you can't even do that as well.

So as Andre mentioned use this standard COA as global consolidation COA in the cnsolidation LE and map these accounts in 7 LE for each main account > Consolidation account field

So while performing consolidation balances will move to the consolidated account in consolidated LE

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