Evaluating a Product's Account Number Structure

 

An important feature that you should always evaluate early on is the size and segmentation of the product's account number structure. Often you can eliminate many inadequate products by first checking this feature. If that structure is inadequate—no matter how superior the product in every other way—the software should be rejected. It's important to understand what's behind that statement.

Many companies need an account number which offers four segments or more. For example,  larger companies often have territories, subsidiaries, divisions, and departments that must be identified and rolled up in the accounting system via four, five or six segments in the account number. Many large not-for-profits need at least four segments in their account number structures—for the account, sub-account, department, and program. Many government agencies need at least four segments in their account number structures to identify the account, sub-account, department and fund. To help you understand why this is important, consider the following example:

Let us assume that a high school purchase some English books. In this case, the four-segment account number debited is as follows:

6050 (Expense) (Book Expense)

SMITH (Sub-account) (Mrs. Smith's Class)

ENG (Department) (English Department)

FED (Funds Used) (Federal Funds)

Using this account numbering scheme, the high school can later produce P&L for the entire school, individual departments, and even for each class. The high school can also produce a report that accounts for all expenditures of federal funds. 

A summary of the account number structure for selected accounting software products is listed below:

Entry Level Products
Sage Simply Accounting	4 characters, 1 segment
APPGEN	10 characters, 10 segments
Sage BusinessVision	5 characters, 1 segment
Sage BusinessWorks	6 characters, 2 segments
M.Y.O.B. Premier	4 characters, 4 segments
Oracle Small Business Manager	27 characters, 1 segment
One Write Plus	6 characters, 2 segments
Peachtree Accounting	15 characters, 15 segments
QuickBooks Premier	64 characters, 2 segments
QuickBooks Enterprise	64 characters, 2 segments
Mid Market Products
Sage ACCPAC ERP	45 characters, 10 segments
Sage BusinessVision	5 characters, 1 segment
Cougar Mountain	30 characters, 6 segments
CYMA	24 characters, 10 segments
Dynamics GP	66 characters, 10 segments
Macola Progression	15 Characters, 3 segments
Sage MAS 90	9 characters, 3 segments
Dynamics NAV	20 characters, 10 segments  (May be modified to an unlimited number)
Sage PFW ERP	32 characters, 30 segments
ACCPAC Pro Series	24 characters, 6 segments
Dynamics SL	30 characters, 9 segments
Syspro	15 characters, 15 segments
Traverse	30 characters, 7 segments
Visual AccountMate	30 characters, 9 segments
Beginning Enterprise Products
Sage ACCPAC Executive ERP	81 characters, 9 segments
Dynamics AX	Unlimited, Freely Modifiable
Sage MAS 500 ERP	100 characters, 15 segments
Deltek	15 characters, 15 segments
Dynamics GP	66 characters, 10 segments
Epicor	32 characters, 4 segments
Lawson Enterprise	53 characters, 15 segments
Macola Progression	15 Characters, 3 segments
Sage ACCPAC ERP	78 characters, 9 segments
Dynamics SL	30 characters, 9 segments
Syspro	15 characters, 15 segments
Enterprise Products
Dynamics AX	Unlimited, Freely Modifiable
eEnterprise	66 characters, 10 segments
JD Edwards	26 characters, 26 segments
Oracle E-Business Suite	2000 characters, 30 segments
PeopleSoft	Unlimited characters, unlimited segments
SAP R/3	Unlimited characters, unlimited segments
Sage ACCPAC Executive ERP	78 characters, 9 segments
Dynamics SL	30 characters, 9 segments

 

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