Ledger account and dimension structure

In Financials, ledger accounts and dimensions are used to track assets, liabilities, equity, profits, and losses. Separate ledger accounts are required to record the day-to-day transactions of businesses and the resulting changes on the balance sheet or profit and loss financial statements. Dimensions are optional. You can use dimensions to further classify the transactions within a ledger account.

For the accounts and dimensions, you can define parent-child relations for subtotaling and for consolidating the amounts on reports and inquiries. On a financial report, the amount on a parent account consists of the sum of the balances of the child accounts.

For ledger accounts, you can use 99 levels of subtotals. For dimensions, you can use 10 levels of subtotals.

The sublevel of a ledger account is defined in the Chart of Accounts (tfgld0508m000) session. Accounts with sublevel zero are posting-level accounts. Accounts with a sublevel higher than zero are parent accounts. Once the balances have been updated in the child level accounts, the parents are automatically updated. You can display or print reports by child accounts or by parent ledger accounts.

When you define the structure, these fields are important:In the Chart of Accounts (tfgld0508m000) session:

• Statutory Parent Account
• Complementary Parent Account
• Sublevel
• Print Sequence

In the Dimensions (tfgld0510m000) session:

• Parent Dimension
• Sublevel
• Print Sequence

How to define the totals for ledger accounts is described below. The same procedure applies to each of the dimensions.

You can define the structure for updating the totals by using the Complementary Parent Account and Statutory Parent Account fields in the Chart of Accounts (tfgld0508m000) session. In these fields you can specify the parent account in the parent-child structure.

The amounts posted to the lower-level accounts are totaled in the higher-level parent account. Parent accounts must have a sublevel greater than zero.

Example

You can only enter transactions in ledger accounts and dimensions with sublevel zero. You can define 99 levels for ledger accounts and 10 levels for dimensions.

The ledger account's sublevel is not used for totaling the amounts. The general ledger's parent-child structure defines in which accounts the amounts of other accounts are totaled. The sublevel is only used for printing balance sheets and trial balances, for example by using the following sessions:

• Print Trial Balance (tfgld3402m000)
• Print Trial Balance - Dimensions/Ledger Accounts (tfgld3406m000)

If you enter and process transactions in ledger accounts to which you link one or more dimensions, you can view the history of the ledger account classified by each of the dimensions. The ledger account at sublevel zero is displayed, which is classified to the dimensions at level zero.