A chart of accounts designed for a company that no longer exists
Most established E-Business Suite estates carry an accounting flexfield designed a decade or more ago, for an organisation that has since bought, sold or restructured most of what the segments describe. There is a segment for a division that was disposed of, a segment reserved for future use that never found one, and a natural account range that ran out and got extended into whatever values were free. Reporting still works, because three people know all of the exceptions.
Two routes exist and they cost very different amounts. The cheaper route leaves the structure alone and fixes the reporting: hierarchies and parent values that give the group the view it needs, cross validation rules that stop new bad combinations being created, and security rules that keep users inside their own part of the tree. The expensive route restructures, which means remapping history, revisiting every report, allocation, interface and custom form, and agreeing a comparative basis with the auditors before anything moves.
Deciding between them should follow evidence rather than preference. Count the manual reclassification journals raised each month, ask how many reports are built by exporting to a spreadsheet and rearranging columns, and check whether the problem is presentation or control. Presentation problems are usually cheaper to solve in a reporting layer. Control problems, where wrong combinations keep being posted, need the rules tightened at source. Restructuring the flexfield itself is a project in its own right and should never be a workstream inside something else.
- Cross validation rules added so new invalid combinations cannot be created, whatever history holds
- Reporting hierarchies and parent values used before any structural change is considered
- Manual reclassification journals counted monthly as evidence of how bad the problem really is
- Value set maintenance given a named owner and a request route, rather than open access
- Any flexfield restructure scoped as a separate project with its own auditor agreement