New Organization Wizard - Account Segments Example

Say, for example, that you are a non-profit organization setting up your system. You have analyzed your report requirements and determined you need to report to external funding sources by grant, and to internal management by department. You have both a general operating fund and a grant fund; and need to produce ASC 958 (FAS 117 superseded) reports.

Set up your segments as follows:

Segment Name	Segment Type
Fund	Fund
General Ledger	General Ledger
Grant	Balancing
Department	Nonbalancing
ASC 958 (FAS 117 superseded)	Restrictions

With this setup, your organization works the following way:

• Debits must equal credits for all Funds entered during transaction entry. This is a system requirement for all Fund segments.
• Because you have designated ASC 958 (FAS 117 superseded) as a Restrictions segment, a Restrictions code is required for each line of your transactions for General Ledger account types Revenues, Expenditures, and Net Assets/Equity.
• Because you have designated Grant as a Balancing segment, debits must equal credits for all Grants entered during transaction entry. This means a Grant code is required for each line of your transactions, regardless of whether the General Ledger account for the line affects revenues/expenditures or assets/liabilities.

Note: Generally, do not designate a segment as Balancing unless you need to produce Balance Sheets for each of the related codes; codes for both Balancing and Non-balancing segments are always required with revenue- and expenditure-type General Ledger accounts.