New Organization Wizard - Account Segments Panel

Access this panel with Administrative user rights using File>New Organization.

Use this panel to enter your chart of accounts segment structure and to define the properties for each segment, or modify these selections. The system automatically displays suggested default segments. You can accept these segments, create your own, or delete all of them, except GL. However, the suggest default segment structure provided—GL, Fund, Sub Acct 1, Sub Acct 2, and Restriction—generally accommodates most organizations' needs to generate proper financial statement formats, making it easier to produce financial statements (Reports>Financial Statements) and the Reports>990 Worksheet.

Be sure to thoroughly analyze your reporting requirements before you enter and save your chart of accounts segment structure. The system gives you full reporting capabilities for each segment created.

Note: A segment's properties cannot be added, deleted, or modified after the completion of this wizard. You can, however, change the names, function assignments, and the order of the segments, using the Organization>Organization Information - Segments Tab.

 

Note: To activate each new row in the table, enter information in one of the columns (such as, enter "3" in the Seq. column).

Sequence (Seq.): The number that you enter here designates the order in which segments appear for transaction entry. The sequence does not affect the order that the segments appear on reports; you control that when you print reports.

Name: Enter a name to identify each account segment. Remember, the Segment Name is only a title. The segment's behavior is determined by its associated Type. If accepting the default segments provided, the segment name should be modified to meet the organization's unique needs. For example, instead of using Sub Acct 1, you might change it to Location.

Type: The following is an explanation of each segment type:

• GL (General Ledger) - This segment type is used for classification of assets, liabilities, revenues, and expenditures. It is required, and you can only have one GL segment. (This is the only segment type that is required in every organization's account structure.)
• Fund - This segment type is used for recording transactions by fund (where fund is a self-balancing, separate set of books). It is optional, and you can only have one Fund segment in an organization's account structure.
• BAL (Balancing) - This segment type is used for transactions, such as, departments, grants, and programs, where you want debits to equal credits for each related code.
• NBAL (Non-Balancing) - This optional segment type is used for classification of transactions, such as, departments and programs, where you do not require that debits equal credits for each related code. Non-Balancing segments are used in situations where an organization needs to track Revenues and Expenditures, but not balance sheet accounts.
• RES (Restrictions) - This optional segment type is used to classify activity according to ASC 958 (FAS 117 superseded) classifications—unrestricted, temporarily restricted, or permanently restricted. ASC 958: Unrestricted (funds without donor restrictions) or Restricted (funds with donor restrictions).

Character Type: This defines the character set you want to use when naming account codes for each segment (Maintain>Chart of Accounts Codes). We suggest that you consider the person entering transactions when you assign segment Character Types—numbers are more easily and quickly entered than alphabetic characters. The table below shows each character type and which characters are valid for that type.

Character Type	Valid Characters
Numeric	Numbers 0-9 only
Alphabetic	Letters A-Z only (upper and lowercase)
Alphanumeric	0-9, A-Z, and punctuation (except the invalid characters: | " [ ] ' %)

Length: This defines the maximum number of characters allowed when naming account codes for each segment. Since you want to accommodate all the codes required, consider your future needs when making choices here.

Function: Select a function of N/A (Not Applicable), PGM (Program), FND (Function), or RES (Restriction) for each segment. Only one segment can be assigned PGM, FND, or RES. All other segments must be assigned N/A. The system automatically assigns the function for the default segments; you can accept the system selections or change them.

The function is used later when setting up account codes (Maintain>Chart of Accounts Codes). Essentially, this code is used to determine the list of designation codes available on the Chart of Accounts Codes form. They are used primarily for 990 reporting.

By flagging a segment with a functional designation, the system will be able to associate that segment with pre-defined sets of grouping categories commonly used in financial and tax reporting. Function codes must be assigned in order to run the system’s default financial statements and for reporting form 990.

• If a segment is set up with a function of PGM, it can be assigned a designation of Program Expenses, Fundraising Expenses, or Management & General Expenses. Use Maintain>Chart of Accounts Codes>Setup tab to assign one of these designations to an account code, or use Reports>Assign Report Groups to assign multiple account codes to one of these designations.
• The system uses the PGM segment to identify the segment that will be used to group Program Service revenue for 990 Part VIII Line 2 items, as well as the Functional expenses in Part IV.
• If a segment is set up with a function of RES, it can be assigned a designation of FAS 117: Unrestricted (funds without donor restrictions), Temporarily Restricted, or Permanently Restricted and ASC 958: Unrestricted (funds without donor restrictions) or Restricted (funds with donor restrictions). Use Maintain>Chart of Accounts Codes>Setup tab to assign one of these designations to an account code, or use Reports>Assign Report Groups to assign multiple account codes to one of these designations.
• If a segment is set up with a function of FND, it can be assigned a designation of N/A or a fund designation code you created using the Reports>Assign Report Groups. Use Maintain>Chart of Accounts Codes>Setup tab to assign one of these designations to an account code, or use Reports>Assign Report Groups to assign multiple account codes to one of these designations.
• The General Ledger segment always has a function of N/A because the system defined GL designations are only applicable to the GL Segment and there can only be one GL segment per organization. It can be assigned any designation available for the N/A Function. Use Maintain>Chart of Accounts Codes>Setup tab to assign one of the available designations to an account code, or use Reports>Assign Report Groups to assign multiple account codes to one of these designations. For more information about N/A Functions, see Chart of Account Code Designations.