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Management Reporting
Management Reporting
You may set up your system to distinguish between fiscal and managerial accounting transactions by defining three different types of accounts (fiscal, managerial, and common). Fiscal accounting transactions are those subject to legal requirements while managerial accounting transactions are subject to internally defined requirements. Common accounting transactions are subject to both legal and internal requirements.
A management reporting flag has been added to Reference File category 133 (System Options) to indicate whether your system will distinguish between fiscal, managerial, and common accounts. This flag must be set at installation time and cannot be changed.
If you use the management reporting option, you must define an account classification (reporting class) for each account in the General Ledger Account Master File. The account classification may be fiscal, managerial, or common (both). Fiscal accounts are used in the legal accounting system, managerial accounts are used in the internal accounting system, and common accounts are used in both the legal and internal accounting systems.
An accounting classification (reporting class) is also defined for the financial journals. Only accounts matching the classification of the journal may be applied to that journal. Financial statements (balance sheet and income statement ) can be generated for both fiscal and managerial accounting transactions. Common accounting transactions are included in both fiscal and managerial financial statements.
In addition to defining accounts with a specific classification, you also set up your financial subsystems (Accounts Payable, Accounts Receivable, Inventory Accounting) as either fiscal, managerial, or common. Only transactions matching the classification of the subsystem may be used in that subsystem.
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