Your organization structure has changed, and you are continually reorganizing.

Problem

A high-tech manufacturing company currently has 10 segments in their chart of accounts:

• company - 3 digits
• business unit - 3 digits
• department - 4 digits
• account - 3 digits
• subdetail - 4 digits
• intercompany - 3 digits
• management company - 3 digits
• product code - 4 digits
• project code - 8 digits
• marketing channel - 2 digits

They do extensive reorganizations each quarter to accommodate department changes. There were two identified needs: a short-term change to ease the burden of the quarterly reorganizations, and a longer-term redesign of the Chart of Accounts. The reorganizations are caused when people (sometimes individually, and sometimes in groups) are moved from one department to another and all of their corresponding costs need to be changed to the new department. In the last reorg there were 819 department changes. These departmental reorganization changes generally take between 12-15 people about a month (not full time for anyone and a coordinator about 30-40% time).

Solution

The company used FlexField software to reorganize the department numbers to represent a true cost center rather than an HR organization. They estimated that the change to the chart of accounts saves them almost $500,000 annually and they are able to close their quarter much faster.