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Setting Up Your System for Management Reporting
Setting Up Your System for Management Reporting
Once you decide to set up your system for managerial reporting, you should follow the steps below (each step is discussed in more detail in the sections that follow):
1. Set the Use Management Accounts flag to Y (yes) on Reference File category 133, System Options, during system installation. This category cannot be maintained once it is set up.
2. Define each of your subsystems as either fiscal (F), managerial (M), or common (C) on Reference File category 026, Subsystem Reporting Classes, during system installation. This category cannot be changed once it is set up.
Note: Remember that only transactions corresponding to the reporting class of the subsystem can be performed in the subsystem.
3. For each account you define in the chart of accounts through the Account Master Maintenance conversation, specify the appropriate reporting class:
Fiscal (F): the account may only be used for fiscal reporting.
Managerial (M): the account may only be used for managerial reporting.
Common (C): the account may be used for fiscal and managerial reporting.
4. Define the various special accounts used by the system: Intercompany Accounts (category 117), Retained Earnings Accounts (category 124), Special Account Number Assignments (category 131, used for unrealized exchange gain/loss accounts).
Using Management Accounts: Considerations
Once you set up your system to use management reporting on Reference File category 133, there are several considerations you should note:
· The Reporting Class field becomes mandatory in the following conversations: Account Master Maintenance, Journal Entry, Allocation Specification, General Ledger Revaluation (for report only option). If you do not use management reporting, the reporting class in all conversations is C, and the field is not displayed.
· For accounts, the reporting class can not be changed once it is defined.
· For journals, the reporting class defaults to C, but may be overridden when first defined.
· For allocations, the reporting class defaults to C, but may be overridden or changed at any time.
· With management reporting, all statistical accounts must have a reporting class of M, and the reporting class of the suspense account must be C.
Financial Subsystems
Before you set up your subsystems (Accounts Payable - AP, Accounts Receivable - AR, and Inventory Accounting - IA) for management reporting, carefully consider how you want to define them.
Each subsystem must be assigned a unique reporting class (fiscal, managerial, or common), and only transactions corresponding to that type may be made within the subsystem. You assign this reporting class on Reference File category 026.
For instance, the Accounts Receivable and Accounts Payable subsystems are usually set up with a common reporting class (C), while the Inventory Accounting subsystem is usually set up with a common or managerial reporting class (C or M).
Note: Remember that, in some countries, it is not possible to set up any of your subsystems as managerial. You must set up your system to comply with the legal reporting requirements of your government.
Reference File Categories
The following Reference File categories must be maintained to set up your managerial reporting system.
· 133 - System Option Assignment: You specify on this category whether you will use managerial accounts in your system. To use managerial accounts, set the Use Management Accounts flag to Y (yes) on the detail screen. This category cannot be maintained after it is set up.
The figure below shows a sample detail screen for this category with the flag set to Y.
WILLIAMS COMMON FEATURES 12/09/92
DSP01 REFERENCE FILE CATEGORY 133 INQUIRE
Category Name SYSTEM OPTIONS
BLANK KEY
Category Key
SNGL/MLT CURR(S,M) CURRENCY LEVEL (G,C,L)
Data M L
X X
ADDRESS FORMAT BOOK CODE
Data 1 Y
X Y
USE MANAGEMENT ACCOUNTS USE ESL/SSD USE COST ANALYSIS
Data Y Y Y
Y Y Y
F2=Command F3=Exit F9=Inquiry F10=Function Select
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System Option Assignment - Category 133 - Detail Screen
· 026 - Subsystem Reporting Class: On this category you specify the reporting class for each of your financial subsystems. The figure below shows an example of the detail screen for this category. This category cannot be maintained once it is set up.
Note: In the illustration below, all of the subsystems are set up with a reporting class of common (C).
WILLIAMS COMMON FEATURES 12/09/92
DSP01 REFERENCE FILE CATEGORY 026 ADD
Category Name SUBSYST REPORTING CLASS
BLANK KEY
Category Key
ACCOUNTS RECEIVABLE REPORTING CLASS
Data C
X
ACCOUNTS PAYABLE REPORTING CLASS
Data C
X
INVENTORY ACCOUNTING REPORTING CLASS
Data C
X
F2=Command F3=Exit F9=Inquiry F10=Function Select
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Subsystem Report Class - Category 026 - Detail Screen
· 117 - Intercompany Account Table: For managerial reporting, you must specify a reporting class in addition to the receiving/paying company/locations on the function select screen. You may define inter-company transaction accounts for all three reporting classes (fiscal, managerial, or common) if you have accounts for each reporting class and company defined on the chart of accounts.
· 124 - Retained Earnings Account: Specify the accounts to be used for year-to-date (YTD) and inception-to-date (ITD) retained earnings. For management reporting, you also have to define managerial YTD and ITD retained earnings accounts.
The next figure shows a sample of the detail screen for category 124 with managerial accounts defined.
WILLIAMS COMMON FEATURES 12/10/92
DSP01 REFERENCE FILE CATEGORY 124 CHANGE
Category Name RETAINED EARNINGS
CO(3) LOC(3)
Category Key 001BRU
YEAR-TO-DATE RETAINED EARNINGS ACCOUNT/CENTER
Data 3130F
XXXXXXXXXX XXXXXXXXXX
INCEPTION-TO-DATE RETAINED EARNINGS ACCOUNT/CENTER
Data 3120F
XXXXXXXXXX XXXXXXXXXX
MANAGEMENT YTD RET EARN ACCT/CTR MGMT ITD RET EARN ACCT/CTR
Data 3130M 3120M
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
F2=Command F3=Exit F9=Inquiry F10=Function Select
F12=Lower Case F15=Rekey Data
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Retained Earnings Account - Category 124 - Detail Screen
· 131 - Special Account Number Assignment: Specify the account/center to be used for unrealized exchange gain/loss for a company/location. For managerial reporting, you must also specify an account/center for fiscal and managerial transactions.
The figure below shows a sample of the detail screen for this category with fiscal and managerial account/centers defined.
WILLIAMS COMMON FEATURES 12/10/92
DSP01 REFERENCE FILE CATEGORY 131 CHANGE
Category Name SPECIAL ACCOUNTS
TYPE(2) CO(3) LOC(3)
Category Key 20001BRU
ACCOUNT/CENTER
Data 2220
XXXXXXXXXX XXXXXXXXXX
FISCAL ACCOUNT/CENTER (IF MANAGEMENT ACCOUNTS USED)
Data 2220F
XXXXXXXXXX XXXXXXXXXX
MANAGEMENT ACCOUNT/CENTER (IF MANAGEMENT ACCOUNTS USED)
Data 2220M
XXXXXXXXXX XXXXXXXXXX
F2=Command F3=Exit F9=Inquiry F10=Function Select
F12=Lower Case F15=Rekey Data
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Special Account Number Assignment - Category 131 - Detail screen