Chart of Account Overview

The chart of accounts are defined to record journal transactions throughout the period and for the period end process.

ACCOUNT SEGMENTS

The chart of accounts in MTech consists of five segments. The segments can be used to roll up costs for reporting.

• Location Group
• Indicates the physical location type for the account
• Codes are system-defined
• Cost Stage
• Identifies where in the production process the account belongs
• Codes are system-defined
• Cost Object
• Determines how the costs are grouped together
• Initial codes are system-defined
• Also able to define additional codes for overheads and other expense accounts
• Cost Element
• Effectively relates to the account segment in a financial chart of accounts
• Initial codes are system-defined
• Also able to define additional codes
• User Account
• Initially must include two codes to represent allocations in and allocations out
• Additional segment where custom segments can be added

Account mapping is a tool that is used to link the MTech cost centers and accounts to the ERP financial system accounts. The process is a one-time exercise that is required to create interfaces to transfer account balances between the systems.

• Import mapping must be defined for each cost center and account in ERP to cost center and account in MTech.
• Export mapping must be defined for each cost center and account in MTech to cost center and account in ERP.

ACCOUNT OPTIONS

Other than the definition of the cost segments, there are also other options that are required to be defined for the accounts.

• Account Name – provides a description for the account that can be used for filtering and reports.
• Suite ID – determines which suite uses the account. The account can be filtered for all suites or specific to a single suite. This field is used for filtering accounts. Options available are All, BMTS, LMTS, Protein, SMTS or TMTS. Admin, Feed Mill, Plant and SYS accounts should be set to All.
• Prog ID – identifies the program that uses the account. The account can be filtered for all programs or specific to a single program.

• Farm Stage – indicates the stage that an account is available for journal transactions based on the stage assigned to the farm. Available accounts will be filtered based on the farm stage. Any accounts that do not relate to a farm should be established as All.

• Account Type – determines the grouping of the account. This can be used for reporting purposes if creating reports with accounts grouped by account type. The account types are typical to a financial reporting account type.

• Balance Type – indicates whether the account is typically a debit or credit account. This does not have any effect on how the transactions are entered. Interfaces may use this field to determine the relative amount for the field. The options available are Debit or Credit.
• Financial Report Type – field to assign account to a specific report type based on the account. This option is only used for filtering data in reports.

• Allocation Type – this option determines how the costs are allocated to the entity movements.
• Non-Allocated – the costs are allocated to the entity based on the transaction date. For example, chick cost would be a  non-allocated cost as it is not allocated to all entities on the farm in the period.
• Allocated Daily - amounts are summed for the month and then prorated to each day of the month based on either Entity Days or Animal Days depending on a registry switch

• • Allocation Mode – determines whether the expense is carried over to the next entity placed or allocated to all entities in the period.
• Current Entities - the logic allocates the total dollars for the month to the entities on the farm on the basis of total bird days for the period.
• Accrued - the logic first allocates the dollars equally to each day of the month and then allocates the dollars for each day to the entities in inventory on that day on the basis of animal days.  Any days that have zero animal days inventory are accrued and carried forward to the next flock.  If the next flock is placed in a later period, the dollars are held at the OPS account level.

• Entity Final Distribution – allows an expense to be allocated to an entity after the completion of an entities movements. The amount should be applied equally on a per bird moved basis to all movements for the entity, including movements from  prior periods.  An example of such expense would be a grower bonus payment that the user wants to see transferred through inventory to all destination entities and/or plants.