Account Transformation

Account Transformation

While there are a number of ways to model account transformation, our example shows you a detailed model for clarity.  Essentially we move the flow balances of the BUYERINV account to the BUYERCOGS account but to different FLOW members so we can have different hierarchy as shown above.

You can set up any kind of transformation you desire to copy balances from one account to another.  You do have to remember that account transformation copies amounts from one place to another.  In account transformation for reclassifying accounts, the second part of the business rules would be to reverse the sign of the entries in the original account after the copy so as to zero out the balance of the account that is reclassified.  An example of this would be a subsidiary finished goods inventory balance might be a raw material balance for the overall company.

In our case we simply need the copy of BUYERINV flow members to specific flow members of BUYERCOGS.

Figure 17. Account Transformation Rules