sunplus account and analysis account structure and dimensional analysis
TRANSCRIPT
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SunPlus Account and Analysis
Account StructureAnd
Dimensional Analysis
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Global Dimensional Chart of Accounts
• The Seventh-day Adventist Church has adopted a standardized chart of accounts which is called the GDCoA – Global Dimensional Chart of Accounts – in SunPlus circles.
• The GDCoA is built upon a dimensional account structure which varies from traditional accounts structures.
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How Does the GDCoA Differ From Traditional Charts of Account?
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Traditional Charts of Accounts
• Transactions are classified at the Chart of Accounts level by opening a physical (natural) account.
GDCOA• Transactions are classified during ledger entry
by attaching dimension analysis codes to the entry.
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Let’s see how that works in practice.
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Let’s take a Traditional Chart of Accounts expense account.
10141201
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The Traditional Account Code Structure broke down like this:_-_ _-_ _-_ _ _
Object Code
Classification
Allocation
Ledger
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Because classification took place at the account level, in the Traditional system you would have the following account ranges to allow for necessary Salary, Travel, and Office Supply Expense accounts:
Office Supplies 10141300-399
Travel Expense 10141200-299
Salary Expense 10141000-099
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In order to classify expenses by department, it would be necessary to open a physical (natural) account for each type of expense for each department.
So you would haveSalary Expense 10141000 Salary Expense – Treasury 10141050 Salary Expense – Youth 10141095 Etc.
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You would have a similar list of accounts for each type of Expense for each department in the organization.
The Chart of Accounts was huge.
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Let’s see how the GDCoA works.
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The Traditional Account Code would now be broken down like this:
1-0 1-4 1-2 0 1
Natural Class (Object Code)
Restriction (Classification)
Function (Allocation)
Fund (Ledger)
The information represented by the first five digits becomes an Analysis Dimension.
Natural Account
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GDCoA
• The Object Class is now the Natural Account code.
• All other information (Fund, Allocation, etc.) is added at Ledger Entry by attaching Analysis Codes to the transaction.
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GDCoA
• So in the new structure, there are fewer Natural Accounts.
• Using our Salary Expense account example, there would be one Natural Account for Salary Expense.
• The Global Dimensional Chart of Accounts is much smaller than the traditional Chart of Accounts.
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GDCoA
• The new account structure accommodates the easy creation of reports.
• Each transaction can now be analyzed and reported on based on – Account Code (Natural Account)– Any (Every) Analysis Dimension reflected in the
transaction posting