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Changing Chart of Accounts For An Existing Entity

  • 1.  Changing Chart of Accounts For An Existing Entity

    Posted Jul 27, 2020 07:28 PM
    Hi All,

    We have an entity which had a different account structure when we brought it into Dynamics 365 and Finance and Operations Online from our other entities (i.e. five entities share one chart of accounts, and a new chart of accounts was created when we put in this new entity).  After a couple years, we now realize we should be using the same chart of accounts for all of our entities, and want to change the chart of accounts for the one not using the shared chart.

    Does anyone know the easiest way to move an existing entity onto a different chart of accounts than it was set up with? We've mapped in excel what the account should be in the shared chart of accounts, but not sure what the next steps are to change in the system.

    Let me know if you need any additional details, thanks in advance for any help on this!

    Thanks,
    Laura

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    Laura McCallum
    Skyline Renewables
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 2.  RE: Changing Chart of Accounts For An Existing Entity

    TOP CONTRIBUTOR
    Posted Jul 28, 2020 01:04 PM
    Bottom line: you cannot change chart of accounts in a company once you have posted transactions (which sort of makes since, as that would mess up all your historical information).

    2 options I can think about:
    1. If the mapping old CoA > new CoA is exactly 1:1 (1 account in old CoA is 1 account in new CoA), you can renumber the accounts in the old CoA to be the same in the new CoA.
    This however means you will lose the ability to look at previous fiscal years using the old CoA.

    2. If mapping is more involved (for example, several accounts in the old CoA map into a single account in the new CoA), or if it is important to keep "historical transactions" with the old CoA, you would need to create a new company in D365, configure it with the new CoA, and effectively "migrate" from the old company to the new company.

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    Zvika Rimalt
    Functional Consultant
    Vancouver BC
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 3.  RE: Changing Chart of Accounts For An Existing Entity

    Posted 18 days ago
    Laura,

    This may be a slightly tedious process, but effective.  Result is having two identical Chart of Accounts (COA1 and COA2).  Take the COA that has the wrong numbers and edit the Main Account number.  Yes, you can edit the Main Account number.  The effect will be to change all transactions and posting profiles so they look like they were always posted to the new number.  Then, if you make edits/additions to COA1, just make the same edits/additions to COA2.  If you export the two COA's and paste the side-by-side in Excel, you can easily verify accuracy of your edits.  NOTE:  Consider advising your CPA auditor of your intended change before implementation.

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    James Sonne
    sonnej@365FinanceArchitect.com
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 4.  RE: Changing Chart of Accounts For An Existing Entity

    TOP CONTRIBUTOR
    Posted 17 days ago
    Hi Laura,

    I agree with the answers and I would also consider actually creating a new entity and move forward as it's true that your reporting could look completely different if you run reports from previous periods after renaming the accounts.  You could - for reporting purposes - use the consolidation account in the main account, create a consolidation entity, and use that to either merge the two or just map.  I have done that when a country requires a local COA and we have to then combine it with other entities with different COAs.

    I try to avoid the consulting answer of 'it depends' but it really does depend on what you have in your history, how much of it needs to be kept and how different the two COAs are (i.e. segments and other items different as well).

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    Shirley Adams
    AKA, an HSO company
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    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


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