sunplus account and analysis account structure and dimensional analysis

SunPlus Account and Analysis

Account StructureAnd

Dimensional Analysis

Global Dimensional Chart of Accounts

• The Seventh-day Adventist Church has adopted a standardized chart of accounts which is called the GDCoA – Global Dimensional Chart of Accounts – in SunPlus circles.

• The GDCoA is built upon a dimensional account structure which varies from traditional accounts structures.

How Does the GDCoA Differ From Traditional Charts of Account?

Traditional Charts of Accounts

• Transactions are classified at the Chart of Accounts level by opening a physical (natural) account.

GDCOA• Transactions are classified during ledger entry

by attaching dimension analysis codes to the entry.

Let’s see how that works in practice.

Let’s take a Traditional Chart of Accounts expense account.

10141201

The Traditional Account Code Structure broke down like this:_-_ _-_ _-_ _ _

Object Code

Classification

Allocation

Ledger

Because classification took place at the account level, in the Traditional system you would have the following account ranges to allow for necessary Salary, Travel, and Office Supply Expense accounts:

Office Supplies 10141300-399

Travel Expense 10141200-299

Salary Expense 10141000-099

In order to classify expenses by department, it would be necessary to open a physical (natural) account for each type of expense for each department.

So you would haveSalary Expense 10141000 Salary Expense – Treasury 10141050 Salary Expense – Youth 10141095 Etc.

You would have a similar list of accounts for each type of Expense for each department in the organization.

The Chart of Accounts was huge.

Let’s see how the GDCoA works.

The Traditional Account Code would now be broken down like this:

1-0 1-4 1-2 0 1

Natural Class (Object Code)

Restriction (Classification)

Function (Allocation)

Fund (Ledger)

The information represented by the first five digits becomes an Analysis Dimension.

Natural Account

GDCoA

• The Object Class is now the Natural Account code.

• All other information (Fund, Allocation, etc.) is added at Ledger Entry by attaching Analysis Codes to the transaction.

GDCoA

• So in the new structure, there are fewer Natural Accounts.

• Using our Salary Expense account example, there would be one Natural Account for Salary Expense.

• The Global Dimensional Chart of Accounts is much smaller than the traditional Chart of Accounts.

GDCoA

• The new account structure accommodates the easy creation of reports.

• Each transaction can now be analyzed and reported on based on – Account Code (Natural Account)– Any (Every) Analysis Dimension reflected in the

transaction posting