Features of a mature & most efficient COA

COA finalization is a milestone in any implementation and every organization is reinventing the wheel in designing most efficient COA. Designing an accounting flexfield is one of the most difficult processes in an implementation & a “good” chart of accounts has the following criteria:

1. Simple to understand - segments support important aspects of the business.
2.  Minimum segments Maximum information - able to report on critical business components with standard reports without resorting to spreadsheets.
3. Expandable i.e. enough room to expand within each segment.
4. Numbers only – not alphanumeric
5. One for all
6. Less dependency of one segment on another
7. Only one type of information in each segment.