Before creating transactions and generating general ledger distributions for these transactions, you must define the account structure. The account structure includes segments that represent specific information about the account. From the Account Structure page, you specify which segments will exist in your account.
An account structure requires only one segment, an account code, which can be one to 100 characters long using alpha-numeric characters. Typically, account codes define cash, accounts receivable, and various revenue accounts. You can add additional segments, depending upon your organization’s needs, which are calculated from an area that you can select, such as event, program, or department. These segments can be up to 100 characters as well, but keep in mind, your total account number cannot exceed 100 characters.
You can also include composite segments in your account structure. Composite segments are segments calculated from two to four areas. You can define these as well. For example, you can define an account segment, called “Location,” based on site and program that is six characters long and separated by a hyphen. For more information about composite segments, see Composite Segments.
We recommend you plan out your account structure and chart of accounts before defining them in the system. On the Account Structure page you can add, edit, and delete account segments that make up the account. To access the Account Structure page, click Define Account Structure on the General ledger setup page.