Account Segments and Chart of Accounts

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I'm creating a chart of accounts for three different stores that are operated under the same Tax ID #. So I'm guessing I need to create segments for each store and a chart of accounts for each segment. The P&L accounts for each store will be identical but just need to be able to separate out each store. I also need to be able to report them on a combined P&L as well as a P&L for each individual store. There will only be one combined Balance Sheet.

So my question is, how do I create the segments? Each account will be 4 numbers long. Each store identifier is also 4 numbers long. Do I need a 4th "main" segment for balance sheet accounts? And after segments are created how will I then create the chart of accounts. I've never done this before and want to make sure I do it right before I get going!

Thank you!

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Community Member on at

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RE: Account Segments and Chart of Accounts

Leslie,

I have to make Advance Payment to Vendor. I make the payment in the following way;

Purchasing>>Manual Payment>>Enter the required information..But when I go to Distribution I cannot make Entry for Income Tax With-held at source. How can I make the following entry through Manual Payment;

Dr. Trade and Other Payable USD 20,000

Cr. Bank Account USD 19,200

Cr. Income Tax Deducted at source USD 800

I am unable to make entry for USD 800 through Manual Payment. Please guide me how can I make the Entry for USD 800 at the time of making advance Payment to Vendor.

An urgent response will be highly appreciated.

Thanks and Regards

Tahir Usman

Pakistan
Community Member on at

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RE: Account Segments and Chart of Accounts

Hi Leslie, I know this is an older thread and I hope you read this and respond, because I too need to setup separate accounts per company and I don't understand what you mean here:

>>If you are using a combined balance sheet, then your segment number for your BS accounts would be 0000.<<

So if you setup a segment for each store how to consolidate?

You can't have something like this:

01-1000 -- cash store 1

02-1000 -- cash store 2

00-1000 -- cash all stores

01-6000 -- advertising store 1

02-6000 -- advertising store 2

00-6000 -- advertising all stores

Since those 00 store segments would not populated as there is no store 00

Confused on how to consolidate. Any help would be greatly appreciated. thanks

Gi
Richard Wheeler 75,848 Moderator on at

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RE: Account Segments and Chart of Accounts

Thinking to the future and if you ever want to use Mass Modify you would not want to use 0000 as you could use that for your template company. This would allow you to quickly create another store in your ledger. When it comes to your reports you would not use the first segment to group but use the second. This way they will fall into into the same natural account range. Of course, if you use account categories to create your reports you could use the combination of the first segment and category to further define your report. Creating financial reports is an art and you will learn by doing. If necessary, create a test company and play in your sandbox.
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RE: Account Segments and Chart of Accounts

Two more quick questions on the matter.

When entering balance sheet accounts some are related to a specific store but some accounts are for all of them, such as Security Deposits, Accumulated Dept, etc. Does it matter which store indicator I use? Or should I be putting like 0000 in?

And then when setting up my segments should my Main Segment ID be the one for the main accounts, not for the stores correct?

Thanks!
L Vail 65,271 on at

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RE: Account Segments and Chart of Accounts

Richard is correct about needing only two characters if your store count will not ever approach 99, but if the 4-digit store numbers are established and used on other company documents, I would continue using it.

Leslie
Richard Wheeler 75,848 Moderator on at

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RE: Account Segments and Chart of Accounts

If the store identifier is 4 digits long that means you will have enough space for about 10,000 stores. For 99 or less stores a 2 digit identifier would be sufficient.

01-1000

02-1000

03-1000 and so on an so on would work. Follow the standard numbering scheme for GL accounts and you will be fine. GP will provide the dashes all you need are the numbers. Personally I prefer to use numbers only but GP will allow you to use letters for account numbers. You just need to pick the appropriate expansion option.
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L Vail 65,271 on at

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RE: Account Segments and Chart of Accounts

Correct Kelsey. You do not need a segment to identify balance sheet or P&L, that is identified by account on the Account Maintenance window. This is probably trite, but you do not need a space between the segment identifier (the dash) for any of the accounts. I noticed you had a space between the segments in the Cash account above.

Kind regards,

Leslie
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RE: Account Segments and Chart of Accounts

Ok, so I'm just needing two segments, I was showing three?

6126 - 1000 - Cash

6128 - 1000 - Cash

6130 - 1000 - Cash

6126-6000 - Advertising

6128-6000 - Advertising

6130-6000 - Advertising

The first segment is the store and the second would be the main account. Correct?
Richard Wheeler 75,848 Moderator on at

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RE: Account Segments and Chart of Accounts

If the first segment represents your stores and the third segment represents the natural account, what is the second segment? Have you already run GP Utilities and defined the default GL segment structure? GP supports up to 10 segments and 66 characters. You would want the default to be something larger than what you need now to allow for growth.

Using your example you would set the first segment to a maximum length of 2

The second segment to a maximum length of 4

The third segment to a maximum length of 4

So your account settings would be 3 segments with a length of 10. Set the main account to your natural account.
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RE: Account Segments and Chart of Accounts

Thank you all! I think I understand more now. I was thinking about segments all wrong. I need two segments, one for Main Accounts(00) and one for the Stores (01). So if I'm thinking about this correctly this is what I want my accounts to look like for example:

Balance Sheet Accounts:

00-6126-1000 - cash

00-6128-1000 - cash

00-6130-1000 - cash

P&L Accounts:

01-6126-6000 - advertising

01-6128-6000 - advertising

01-6130-6000 - advertising

Then I would have a consolidated Balance Sheet which is what I need and then I'd need a consolidated P&L in addition to separate P&L's for each store.

So my question is how to get them to look like this format in the Account Format Window (pending I'm thinking/doing this correctly now.) Then making my Chart of Account should be a breeze :)