Change in Relationship for General Ledger from Child to Parent level

[Former Member]

The following explanation will provide the information on change in hierarchy of general ledger accounts. The existing Child will become parent and two general ledger accounts will be incorporated under existing Parent. But this process will have impact on earlier year’s data. All the data for the earlier years will need to be moved.

Business Reasons:

1. When the business need to comply with the legal reporting purpose and they want to bifurcate the existing general ledger data in two separate general ledger accounts.
2. When the management requires the reports based on different purpose such as land and building should be separately accounted for control purpose.

There can be different process that one can follow. I have explained here the process to add new general ledger accounts under existing GL, where existing GL is having data posted on it.

1. BI backend data available on GL A1180_Other Property, Plant and Equipment

2. The present hierarchy for the asset is shown in following screen shot

3.  We want to add two GL Accounts under A1180

·                  A1183- Other Properties

·                  A1184-Other Plant and Equipment

1.   4.  We will also add intermediate GL account for moving the balance from A1180 to A1185_Other Intermediate.  GL account will be added in ACCOUNT Dimension.

5. Run the copy package from A1180 to A1185 and run clear package for clearing data from A1180.

After clearing the data and values for GLA1180 becomes zero. The system will allow assigning new GL accounts in the Hierarchy.

6.  Assign A1183- Other Property (Now Child)and A1184- Other Plant and Equipment(Now Child) to  A1180- Other Property and Plant and Equipment (Now Parent)

Above mentioned changes will not display unless you run the refresh dimension members from Excel side. The below mentioned is the changed hierarchy

7. Now transfer data from A1185_Other Intermediate to A1183 by using Copy package.

1.   8. Run Clear package to clear the data from GL A1185_Other Intermediate.

In this process, we can use move package for movement of data. The following are impacted areas

• Data for the previous years in consolidation and forecasted years in budgeting.
• Mapping process Change.
• Same ACCOUNT Dimension used in different applications.
• Account dimension Properties.
• Dimension formulas in Account dimension.
• Business rules, reports and input templates.