When a GL account structure is created, the Use Hierarchical GL Account setting is available. This setting determines how GL accounts behave during the AP Agility Workflow.

If this setting is selected, a second or subsequent GL code segment is dependant on what is previously selected. All unsuitable segments are filtered out of the list to ensure that an incorrect sequence is not selected.

For example, you have a GL code with three individual segments of XXX-YY-ZZZ as follows:

• XXX = Region where the valid values are 900=North America, 800=Europe, 100=Africa, and 200=Asia.

• YY = Country where valid values are 91=USA, 905=Canada, 97=Mexico, 81=Germany, 84= Italy, 85=Spain, 14=South Africa, 15=Egypt, 24= Japan, and 27=China.

• ZZZ = Dept where valid values are 001 = Marketing, 002 = IT, 101 = Admin, and 207 = Purchasing.

The user starts by selecting 800 for Europe and then 81 for Germany. Germany does not have a Marketing department so validating a GL code of 800-81-001 would fail in the ERP.

However, if the Use Hierarchical GL Account setting is enabled, it is not possible to select this GL account structure. Selecting the first segment of a GL code will automatically filter the second GL code segments to ensure that it contains only those code segments that are valid for the first selection. Any subsequent segments are also filtered based on the previous selection. This means that when Germany is selected, no Marketing department is displayed as a third choice as this does not exist.

If you enable hierarchical GL accounts after processing some documents, it is possible that users may already have favorite GL codes. Users cannot apply these existing GL codes if they do not comply with the new hierarchal definitions. The user must manually remove these invalid GL codes from their lists.