Alternate Organizations (Reorganizations) and Reference Numbers

A possible alternative to using reference numbers to establish an alternate reporting structure is to use reorganizations.

There are advantages and disadvantages to each approach.

You can use reference numbers to link the elements of your alternate reporting structure to specific account/organization combinations, which provides a great deal of reporting flexibility. Also, more general ledger reports are available by reference number alternate reporting structures than by reorganization. However, you must update the reference structures whenever you add an account or organization so that all account/organization combinations are mapped properly. In addition, because of the potentially large number of account/organization combinations, setting up all of the reference/account/organization links can be very complex.

Reorganizations are linked only to organizations, rather than to account/organization combinations, making them simpler to set up and use. You only need to update reorganizations when you add or change organizations. However, your organization structure must capture all discrete reporting units. Reorganizations enable you to roll your existing organization elements up in a different fashion, but they do not provide a mechanism for redesigning your account/organization matrix. Also, Costpoint offers fewer reports that you can generate by reorganization than it does reports that you can generate by reference number alternate reporting structure.

Neither method involves alternate storage of summary data. Both are simply reporting tools that provide alternate ways to present the existing data in the Financial Statement tables.

As you evaluate your reporting needs, keep in mind that not all reports support both methods, and some reports do not support either one. Make sure you thoroughly analyze both options before deciding to use either. Ultimately, no alternate reporting method can completely take the place of a well-designed and implemented organization structure.