Company structure recommendations

While there is no right or wrong way to set up your company, incorporating these recommendations will put you on a solid path for defining an effective company structure:

• Use clear alpha names for summary accounting units. These names will be used for consolidation and reporting.

• To simplify reporting, include all posting accounting units at the same level in the company.

• Skip some numbers when assigning addresses to leave room if you need to add new accounting units in the future.

• Use smart numbering when defining level address for accounting units to make it easy to select a range of accounting units. For example, a retail organization might have a Men's department in many stores. By assigning level addresses with a consistent numbering pattern, it is easier to create a report for the Men's departments only. So if four departments had level addresses of 01-01, 02-01, 03-01, and 04-01, then you can include all of them by selecting all accounting units where the level one was 01 to 04 and the level two was 01 to 01.