The Accounting Organization Model, Divisions, Subsidiaries, and Roll-up

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In opentaps accounting the organization implied by the system is a company with one roll-up to a top level unit where costs and profits can be reported. Thus, general ledger accounts exist in one tree structure which leads to that top level organization. However, features of opentaps accounting make it more flexible.

Various "organizational units" can be defined in the company profiles which are part of the organizational tree structure, and with their own general ledger accounts, so that accounting reports can see the details of the unit's operation. If these accounts are part of the main general ledger tree of accounts then the aggregated results will appear in the to level organization financial reports.

But, what if the objective is to see a complete financial report on an organizational unit which is managed as either a cost center or a profit center? This can also be handled with the opentaps accounting tags function. Cost center or profit center reporting is often used in businesses to highlight the performance of an internal unit of moderate size, one which is not large enough to be a full division or a subsidiary. Using the accounting tags, opentaps can handle cost center or profit center reporting, although it does not roll up independent units like divisions or subsidiaries.

Refer to the following section, About_Profit_Centers_and_Cost_Centers, for more information.



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