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Setting Up the DIVISION (Project) Module

The DIVISION Module: Overview 3

To Set Up a Division - Set up DIVISION title and Division names 6

Set up DIVISION Default Settings- Budget 9- Allocation 10 - Names 11

ContentsContents

Slideshow 11ASlideshow 11A

The DIVISION Module: The DIVISION Module: OverviewOverview

The DIVISION (or Projects, Job Sites, Crops, Properties, etc., whatever name you wish to use) module allows you to allocate (distribute) all or part of a transaction to one or more divisions. A division may be a specific product, a store branch, a department in the company, etc.

You can distribute assets, liability and equity (revenues and expenses) to divisions for tracking purposes, so you would know the profitability of individual divisions. Commonly, only revenues and expenses are tracked on a division-by-division basis.

Study the types of division-related transactions.

Click to continue.

Using the division feature in Sage Simply Accounting, Using the division feature in Sage Simply Accounting, you can:you can:

• Allocate all or part of a transaction to one or Allocate all or part of a transaction to one or more divisionsmore divisions

• Allocate employee payroll expenses to one or Allocate employee payroll expenses to one or more divisionsmore divisions

• Track a division's costs and earningsTrack a division's costs and earnings• Produce summary or detailed reports on Produce summary or detailed reports on

divisionsdivisions

Division AllocationsDivision Allocations

You can allocate amounts from the following types of You can allocate amounts from the following types of transactions to divisions:transactions to divisions:

• Sales and Purchases. You can distribute all or Sales and Purchases. You can distribute all or part of an item's revenue or expense to one or part of an item's revenue or expense to one or more divisions.more divisions.

• Paycheques, including payroll cheque runsPaycheques, including payroll cheque runs• Miscellaneous transactionsMiscellaneous transactions• Inventory adjustmentsInventory adjustments• Time slipsTime slips

All revenue and expense accounts are automatically All revenue and expense accounts are automatically set up to allow division allocations. You can also set up to allow division allocations. You can also allocate assets to a division, but you must first set up allocate assets to a division, but you must first set up the asset account to allocate amounts for divisions.the asset account to allocate amounts for divisions.

The DIVISION Module: OverviewThe DIVISION Module: Overview (continued)(continued)

How is the DIVISION Module How is the DIVISION Module Used?Used?

The best way to understand this is to study an example:

An employee, Hillary Buchanan works 80 hours a week on various divisions. You can distribute the various payroll-related expenses to the specific divisions she works on.

Click.

Study the allocation of Hillary’s hours by % based on a total of 80 hours.

Click and study the resulting Payroll Run Journal Entry.

Allocation is entered in the corresponding module. The example above involves PAYROLL, and would therefore be entered in the PAYROLL module. For transactions involving sales, the allocations should be entered in the RECEIVABLES MODULE.

Click to continue.

% of allocation in hours

PAYROLL Run

Journal Entry

Allocated amounts to specific divisions

PAYROLLPAYROLL-Related -Related ExpenseExpense

ss

The DIVISION Module of The DIVISION Module of HotTubs Company: Overview HotTubs Company: Overview (continued)(continued)

The DIVISION module is different from the other Simply modules in the sense that it does not have its own journals. For example, if you are allocating a vendor purchases to various divisions, you would record it in a Purchase Invoice. Likewise, if you want to allocate a sale to various divisions, you would enter it in a Sales Invoice.

In the company HotTubs, the Simply DIVISION Module is used to track revenues and expenses for:- hot tubs – all models- all chemicals

The DIVISION module is set up with the title Tubs/Chemic.

Study the Tubs/Chemic DIVISION home window.

Click to continue.

To Set Up a Division: To Set Up a Division: Set up Set up Division Title and Division Division Title and Division NamesNames

A division title is the name assigned to the DIVISION module. All windows and reports pertaining to the division will bear the division title’s name. Under the division title, you can have various Division Names to which you can allocate transactions. See right for examples of division structures.

Click.

Examples of DIVISION StructuresExamples of DIVISION Structures

Division Title: Division Title: STORESTORE DEPARTMENTDEPARTMENT

Division Names:Division Names: TorontoToronto Ladies’ WearLadies’ WearVancouverVancouver Men’s ApparelMen’s ApparelEdmontonEdmonton Children’s Children’s

WearWearMontrealMontreal FootwearFootwear

Division Title: Division Title: SALES REPSALES REP COMPONENTCOMPONENT

Division Names:Division Names: MundyMundy Tower CaseTower CaseDennisonDennison

MotherboardMotherboardChesterChester Hard DriveHard DriveJacobsJacobs PortsPorts

Division Title: Division Title: DIVISIONDIVISION DIVISIONDIVISION

Division Names:Division Names: PaperbacksPaperbacks Site #456Site #456

Hard coverHard cover Site #589Site #589

3-ring bind3-ring bind Site #896Site #896cerlox bindcerlox bind Site #674Site #674

To keep track of revenues/expenses of each store.

To keep track of revenues/expenses of each department in a store.

To keep track of revenues/expenses of each sales representative

To keep track of cost of each component of an assembled product.

To keep track of revenues/expenses of each type of printed material.

To keep track of revenues/expenses of each construction site

To Set Up a Division: To Set Up a Division: Set up Set up Division Title and Division Division Title and Division NamesNames

In the Home window at the right, Tubs/Chemic has been set up as the division title. It is a product line of HotTubs Company. The management of the company has decided to use the DIVISION module to determine the profitability of each product.

Click.

Each product is set up as a division name to which expenses and revenues can be allocated.

Study the division names under the division title Tubs/Chemic.

Click to continue.

DIVISION title

DIVISION Names

To Set Up a Division:To Set Up a Division:

Set Up Default Module SettingsSet Up Default Module Settings

Module settings determine the manner by which Simply would allocate Payroll and all other transactions. Defaults can be set, but they but can be changed if necessary while entering allocations.

Budget

Study the settings for DIVISION:

- Budget

- Allocation

- Names

Click BUDGET.

The sample company does not use the BUDGET feature.

Click ALLOCATION.

You probably have a rough idea of your revenue and expense targets for the year. If you have recently written a business plan or spoken with an accountant, it is likely that you have already created a budget. Budgets could be entered into Sage Simply Accounting for comparison between actual and budgeted revenue and expenses. You can then periodically print income statements that compare budgeted amounts to actual amounts.

You can also use create budgets for specific divisions.

To Set Up a DivisionTo Set Up a Division

Set Up Default Module Set Up Default Module Settings: Settings:

AllocationAllocation

Study the options by which you may allocate:

Amount –You need to enter a specific amount in the allocation window for each division.

Percent –Will instruct Simply to calculate the allocation according to the percentage you assign to each division.

Hours – Employee hours are averaged to the nearest one-quarter (.25) of an hour. The amount allocated will depend on the hourly rate of the employee. If the employee is not paid on an hourly basis, the program uses the allocation method you chose for other transactions.

Click NAMES at the left panel.

You can distribute revenue and expense amounts to your divisions in the following transaction windows for tracking purposes:• Purchase and Sales Invoices• Inventory Adjustments• Paycheque• Payroll Cheque Run• Time slips• Miscellaneous Transactions

You can allocate amounts line by line, or for an entire transaction. You can also allocate entries associated with asset accounts.

You can allocate transaction amounts to divisions by a specified amount or percentage. For payroll transactions, you can also allocate by the number of hours.

When payroll expenses are set up to allocate by the hour, but the paycheque does not contain hours, you must allocate based on a percentage.

To Set Up a DivisionTo Set Up a Division

Set Up Default Module Set Up Default Module Settings: Settings:

NamesNames

In this window, you can rename the DIVISION module, and rename or remove the Additional Information boxes for divisions. Tubs/Chemic does not use this page.

Click to continue.

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