A. Organization worktags are primarily for analytical, external, and management reporting needs. They are also used to group people, for security purposes, and for business process routing. These worktags typically answer the following three questions about a transaction:
- Who is responsible for the transaction? Example: Cost Center
- How is the transaction funded? Example: Grant
- What type of activity is the transaction supporting? Example: Program
Accounting worktags, however, are used more for recording and classifying transactions into their natural classifications (e.g. cash, equipment, accounts payable, revenues, salaries, supplies, services, etc.) for accounting and financial reporting purposes. Think financial statement lines on a Balance Sheet or P&L Statement.