What Should I Consider When I Add a Company Level?
You may need to add a new level to your company structure at some point, such as if business expansion causes you to split your company into regions when previously you had been organized by state.
Before adding a level to your company carefully consider what the new structure will look like. You should review your current company structure and plan your changes on paper before completing them in the General Ledger application. Consider the following examples:
Example 1
ABC Company is moving Housewares (01-10-10) beneath the Furniture department (01-10-20) in Store 1. However, ABC Company has only four levels. In order to move Housewares, a new level must first be defined in order to create a location for the subordinate accounts of Housewares to exist. When the Housewares summary account is moved, the system automatically assigns the new level addresses to the children: Bedding (01-10-20-10-10) and Kitchen (01-10-20-10-20).
Example 2
ABC Corporation is consolidating its Bedding (01-20-10) and Kitchen (01-20-20) posting accounts under the new summary account of Housewares. To complete this restructure, a temporary summary accounting unit is created to house the Bedding and Kitchen accounting units until the new level is added.
Once the new level is in place, the Housewares summary accounting unit is created for the new level and assigned a level address of 01-10-10. The Bedding and Kitchen accounting units are then transferred to the new Housewares accounting unit. Finally, the temporary location is deleted.
