Hi-Definition Transformation Problems > Corporate Internal Reorganization > Reorganize Departments
Profile
A high-tech manufacturing company currently has 10 segments in their chart of accounts:
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).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
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.
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eprentise Resources |
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eprentise Reorganization | |
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eprentise Consolidation | |
Data Sheets |
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eprentise Reorganization Data Sheet | |
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eprentise Calendar Change Data Sheet | |
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eprentise Consolidation Data Sheet | |
