Financial Management setup for a model retail company
… table of the financial management setup for a model retail company
|This includes defining the company’s legal entities, business units, and departments.
|Chart of accounts
|This defines the accounts that will be used to track financial transactions.
|This defines the tax rates and regulations that will apply to financial transactions.
|This defines the currencies that will be used to track financial transactions.
|This defines the accounting books that will be used to track financial transactions.
|This defines the dimensions that will be used to analyze financial data.
|This defines the users and roles that will have access to financial data.
Here is a data modelling for a model retail company:
- Organizational structures: The company has two legal entities: a parent company and a subsidiary. The parent company has two business units: retail and wholesale. The retail business unit has three departments: sales, marketing, and operations. The wholesale business unit has two departments: sales and operations.
- Chart of accounts: The chart of accounts has the following accounts:
- Assets: Cash, Accounts receivable, Inventory, Property, plant, and equipment
- Liabilities: Accounts payable, Notes payable, Accrued liabilities
- Equity: Common stock, Retained earnings
- Revenue: Sales, Interest income, Dividend income
- Expenses: Cost of goods sold, Selling expenses, Administrative expenses
- Tax setup: The company is subject to the following taxes: federal income tax, state income tax, and sales tax.
- Currency setup: The company uses the US dollar as its primary currency. It also uses the euro and the British pound for some transactions.
- Ledgers: The company has two ledgers: general ledger and subsidiary ledger. The general ledger tracks the financial transactions of the company as a whole. The subsidiary ledger tracks the financial transactions of the company’s individual departments and subsidiaries.
- Financial dimensions: The company uses the following financial dimensions:
- Time: Year, quarter, month, day
- Product: Product line, product category, product subcategory
- Customer: Customer type, customer location
- Vendor: Vendor type, vendor location
- Security: The company has the following user roles:
- Accountant: Can access all financial data
- Clerk: Can access financial data for their department
- Manager: Can access financial data for their business unit
- Executive: Can access all financial data
This is just a sample data modelling for a model retail company. The specific data modelling will vary depending on the specific needs of the company.