Evaluating Accounting
Software:
Examine the Account Number Structure
This article is part of a series entitled
“Evaluating Accounting Software” in which J. Carlton Collins explains
his quick and dirty 20-minute guide to evaluating an accounting software
package. The article series starts here:
http://www.asaresearch.com/articles/evaluating.htm
An important feature that you should always
evaluate early on is the size and segmentation of the product's account
number structure. Often you can eliminate many inadequate products by
first checking this feature. If that structure is inadequate—no matter
how superior the product in every other way—the software should be
rejected. It's important to understand what's behind that statement.
Many companies need an
account number which offers four segments or more. For example, larger
companies often have territories, subsidiaries, divisions, and
departments that must be identified and rolled up in the accounting
system via four, five or six segments in the account number. Many large
not-for-profits need at least four segments in their account number
structures—for the account, sub-account, department, and program. Many
government agencies need at least four segments in their account number
structures to identify the account, sub-account, department and fund. To
help you understand why this is important, consider the following
example:
Let us assume that a
high school purchase some English books. In this case, the
four-segment account number debited is as follows:
|
6050
(Expense)
(Book Expense) |
SMITH
(Sub-account)
(Mrs. Smith's Class) |
ENG
(Department)
(English Department) |
FED
(Funds Used)
(Federal Funds) |
Using this account
numbering scheme, the high school can later produce P&L for the entire
school, individual departments, and even for each class. The high
school can also produce a report that accounts for all expenditures of
federal funds.
A summary of the account number structure
for selected accounting software products is listed below:
|
Entry Level Products |
|
ACCPAC Discovery
Series |
12 characters, 2
segments |
|
ACCPAC Simply
Accounting |
4 characters, 1
segment |
|
APPGEN |
10 characters, 10
segments |
|
BusinessVision 32 |
5 characters, 1
segment |
|
BusinessWorks Gold |
6 characters, 2
segments |
|
M.Y.O.B. Premier |
4 characters, 4
segments |
|
Oracle Small
Business Manager |
27 characters, 1
segment |
|
One Write Plus |
6 characters, 2
segments |
|
Peachtree 2000 |
11 characters, 4
segments |
|
Peachtree for
Windows |
15 characters, 15
segments |
|
Peachtree Complete
Accounting |
15 characters, 15
segments |
|
QuickBooks |
13 characters, 1
segment |
|
QuickBooks Pro
2000 |
13 characters, 1
segment |
|
Mid Market Products |
|
ACCPAC Advantage |
45 characters, 10
segments |
|
BusinessVision 32 |
5 characters, 1
segment |
|
Cougar Mountain |
30 characters, 6
segments |
|
CYMA |
24 characters, 10
segments |
|
Dynamics |
66 characters, 10
segments |
|
Macola Progression |
15 Characters, 3
segments |
|
MAS 90 |
9 characters, 3
segments |
|
Navision Attain |
20 characters, 10
segments
(May be modified to an unlimited number) |
|
Platinum for
Windows |
32 characters, 30
segments |
|
ACCPAC Pro Series |
24 characters, 6
segments |
|
Solomon IV |
30 characters, 9
segments |
|
Syspro Impact
Encore |
15 characters, 15
segments |
|
Traverse |
30 characters, 7
segments |
|
Visual AccountMate |
30 characters, 9
segments |
|
Beginning Enterprise Products |
|
ACCPAC Executive
Series |
81 characters, 9
segments |
|
Axapta |
Unlimited, Freely
Modifiable |
|
MAS 500 |
100 characters, 15
segments |
|
Deltek |
15 characters, 15
segments |
|
eEnterprise 6.0 |
66 characters, 10
segments |
|
E by Epicor |
32 characters, 4
segments |
|
Lawson Enterprise |
53 characters, 15
segments |
|
Macola Progression |
15 Characters, 3
segments |
|
ACCPAC Executive
Series |
78 characters, 9
segments |
|
Solomon IV |
30 characters, 9
segments |
|
Syspro Impact
Encore |
15 characters, 15
segments |
|
Enterprise Products |
|
|
Axapta |
Unlimited, Freely
Modifiable |
|
eEnterprise |
66 characters, 10
segments |
|
JD Edwards One
World |
26 characters, 26
segments |
|
Oracle E-Business
Suite |
2000 characters, 30
segments |
|
PeopleSoft |
Unlimited
characters, unlimited segments |
|
SAP R/3 |
Unlimited
characters, unlimited segments |
|
ACCPAC Executive
Series |
78 characters, 9
segments |
|
Solomon IV |
30 characters, 9
segments |
- END -
|
