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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / CoA - Newbie question
Finance | Project Operations, Human Resources, ...
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CoA - Newbie question

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Posted on by Community member 3
Hi
 
We are in the early stages of a project to convert to D365 F&O and do not yet have our systems Integrator appointed and I am trying to get my basic CoA principals sorted ahead of the came.
 
We are currently using Oracle E1 (JDE) and we have a global CoA at Group level but individual counties can split the accounts to suit their own local requirements.
eg Main account 62180 is 'Other Travel Expenses' which everyone has to use but eg Spain will have 62180.01, 62180.02 62180.03 etc to split it how they need it and Sweden will have  62180.01, 62180.02 62180.03 etc to split it how they need it.
The main account (eg 62180) is global but the .01 .02 .03 etc are local and will be different in each company - if they are used at all. 
 
The main accounts are mandated globally but local companies can split for their own purpose - what is the best method of achieving this in D365?
 
Many thanks
  • Suggested answer
    saurabh bharti Profile Picture
    saurabh bharti 15,029 Super User 2024 Season 2 on at
    CoA - Newbie question
    Hi,
     
    There is no straight forward answer to this and this is most complicated decision when you start D365 implementation because we have to consider many things.
     
    Now there can multiple ways and each has its own pros and cons. Here are few in my opinion:
     
    Shared COA: 
    1. Use as Global chart of accounts 
    2. Accounts which are local can be restricted using legal entity obverride so that other company does not use
    3. To have consolidate figure you can try having 62180 as Total type and rest all as subset of thsi
     
    Inidvisual COA:
     
    1. Define COA for all inddivisual company
    2. Use one COnsolidated COA and map that as consolidated account to each legal entity COA
     
    Here is MS offcial document as well
     
    Having said that , please do consider pros and cons of the approaches in terms of reporting, Maintainance  and control
  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 16,176 Most Valuable Professional on at
    CoA - Newbie question
    You can do consolidation reporting or you can manage through financial reports. In financial reports you can assign the COAs accounts however you need to. If consolidation is used, you can set the consolidation account.
  • Suggested answer
    Bharath jain Profile Picture
    Bharath jain 862 on at
    CoA - Newbie question
    Hi,
     
    If its a global chart of accounts, you can create a main account and restrict that to a particular legal entity through legal entity override option. In this way you can have a shared chart of accounts and yet have specific main accounts related to legal entity.
     
    This is not exactly how it works in Oracle, but you can use it as a workaround.
     
    Regards,
    Bharath Jain
  • Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    CoA - Newbie question
    Hi,
    You can refer to the documentation about COA, hope it helps.
    Plan your local chart of accounts - Finance | Dynamics 365 | Microsoft Learn
    Best Regards,
    Hana
  • André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,784 Super User 2024 Season 2 on at
    CoA - Newbie question
    Hi,
     
    In case you need to have different accounts per country or legal entity, you can't use a shared chart of accounts. You can set up a global CoA as default for other legal entities and to be used in a potential consolidation company. In the CoA's of the countries, you can add other accounts and link them to the global one using e.g. a consolidation account or main account category.

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