Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

How to Convert from a Standard to a Multi-Departmental or Divisional Company

Highlighted
Intuit

How to Convert from a Standard to a Multi-Departmental or Divisional Company

How to convert from a standard to a departmental or divisional company

Before beginning:

  1. Make a backup of the company.
  2. Print the Chart of Accounts.
    • Each Department or Division will have the same chart of accounts, but with the appropriate number of the department/division as the prefix.
    • Example:  Account 1000 will need account 11000 for department 1, 21000 for department 2, and so on.
  3. Determine if this is to be a Departmental or Divisional Company.
    • Departmental Companies have a single Balance Sheet and multiple Income Statements:
      • 1 Combined Balance Sheet and 1 Combined Income Statement + Departmental Income Statements.
    • Divisional Companies have multiple Balance Sheets + multiple Income Statements:
      • 1 Combined Balance Sheet + Divisional Balance Sheets and 1 Combined Income Statement + Divisional Income Statements.

OPTION 1:

  • Use OPTION 1 when all the transactions in the existing accounts will be assigned to a single department / division.
    • EasyACCT does not allow posting to a combined account.
      • Transactions can only be posted to the department/division accounts.
      • The program will automatically roll them into the combined account after posted, for financial statements. 
  1. Create the first set of Department/Divisional Accounts
    • The program will then automatically go through all the current transactions and reassign them to the first department/division for you.
      1. Go to Write-Up > Data File Utilities > Del/Renumber Accounts.
      2. Choose the first option to 'Select specific accounts to delete or renumber'. 
      3. Click Continue.
      4. Assign a new General Ledger Account Number by typing a New ID for each account that needs to have transactions re-assigned. How? 
        • For Departmental companies:
          • Do not renumber asset or liability accounts.
          • For revenue and expense accounts, enter a New ID by taking the original account number and adding a '1' to the beginning.
            • For example, account 300 becomes 1300 for Department 1. 
          • Do not skip any revenue and expense accounts, even if you may not need them for a department. 
          • Click Continue.
        • For Divisional Companies:
          • Assign New IDs to all accounts.
          • For each account, enter a New ID by taking the original account number and adding a '1' to the beginning.
            • For example, account 200 becomes 1200 for Division 1. 
          • Do not skip any accounts.
          • Click Continue.
  2. Create a new Combined Chart of Accounts:
    1. Go to Write-Up > Update Company Files > General Ledger Accounts.
    2. Using the printed Chart of Accounts from ?Before beginning?, set up each combined account with the same account number and description as it was as a Standard Company.   
      • For Departmental companies:
        • Do not re-enter asset and liability accounts.
          • These should all remain the same with the Types A and L.
        • Set up the same Revenue accounts as Type I.
        • Set up the same Expense accounts as Type C.
      • For Divisional Companies:
        • Set up the same Asset accounts as Type P.
        • Set up the same Liability accounts as Type D.
        • Set up the same Revenue accounts as Type I.
        • Set up the same Expense accounts as Type C.
          • NOTE: If account balances are transferred to either the Lacerte or ProSeries tax program, set up Tax Pg/Sch and Tax Lines for each departmental or divisional account. 
          • The Combined accounts do not transfer to the return
  3. Use the Automated Feature to Add the Remaining Chart of Accounts for each additional Departments/Division:
    1. Go to Write-Up > Data File Utilities > Multi-Departmental Accts.
    2. Indicate the number of additional departments/divisions to create.
      • Recall that one department/division and the combined accounts are already set up. 
        •   So, if there are 3 departments plus the combined accounts,  enter 2 additional departments.
  4. Adjust the Financial Statement Template:   
    1. Go to Write-Up > Update Company Files > Financial Statements > select Statement Templates.
    2. Change the Type of Financial Statements from Standard to Multi-Departmental or Divisional.
    3. Enter the total number departments or divisions (not including the combined statements).
    4. Save.
    5. Verify that the account number ranges on each statement tab are assigned to the Combined accounts.
      • As long as the setup is correctly designated by the type of each account in B, the program will print each department/division and combine the dollar amounts in the Combined statement.
  5. If you wish to change department/division names, see GEN66402 .
  6. Repost all Transactions in all months: 
    1. Go to Write-Up Processing > Print Reports > select the General Ledger and Payroll Journal reports to print. 
    2. Print one month at a time starting with the first month in the prior year and ending with the last month of transactions. 
    3. If the Accounts Receivables module is used select the G/L Distribution Report (Detailed or Summary). 
    4. If the Accounts Payable module is used select the G/L Distribution Report (Detailed or Summary).
  7. Reassign the Sales accounts in the AR Setup Wizard to reflect the department/division accounts.

OPTION 2:

  • Use Option 2 when the transactions from the existing company will be split between different departments or divisions
    • The program cannot automatically reassign individual transactions to more than one department as in Option 1, therefore it will be done manually

A: Change the Chart of Accounts to indicate the Combined Account Types:

  1. Go to Write-Up > Update Company Files > General Ledger Accounts.
  2. For each account that will become a Combined  account, change the Account Type
  • For Departmental companies:
    1. For each expense account change the E to a C
    2. For each revenue account change the R to an I.
    3. Do not change the asset and liability accounts.
  • For Divisional Companies:
    1. For each asset account change the A to a P.
    2. For each liability account change the L to a D.
    3. For each revenue account change the R to an I.
    4. For each expense account change the E to a C. 

 B: Use the Automated Feature to Add the Remaining Chart of Accounts for each additional Departments/Division:

  1. Go to Write-Up, Data File Utilities and Multi-Departmental Accts. 
  2. Enter the number of departments or divisions to create.
  3. Click Continue.

 C:  Manually reassign every transaction from the combined account number to the department/division it belongs: 

  1. Go to Write-Up > Enter Transactions and access the first month in the prior year.
  2. For each transaction, change the account number from the combined account to the departmental or divisional account. 
  • If payroll is entered, select Payroll Entry.  For each field on the check with an amount, click on the gray box with an account number and change it from the consolidated account to the departmental or divisional account.
  • If the Accounts Receivables module is used, access the Special Journal screen, select the AR journal and change the account numbers from the consolidated accounts to the departmental or divisional accounts.
  • If the Accounts Payables module is used, access the Special Journal screen, select the AP journal and change the account numbers from the combined accounts to the departmental or divisional accounts. 
  • Change each vendor, customer and employee record to reflect the new departmental or divisional accounts instead of the combined accounts.

 D:   Adjust the Financial Statement Template:   

  1. Go to Write-Up > Update Company Files > Financial Statements > select Statement Templates 
  2. Change the Type of Financial Statements from Standard to Multi-Departmental or Divisional.
  3. Enter the total number departments or divisions (not including the combined statements).
  4. Verify that the account number ranges on each statement tab are assigned to the Combined accounts. As long as the setup is correctly designated by the type of each account in B, the program will print each department/division  and combine the dollar amounts in the Combined statement.
  5. Save. 
  6. If financial statement customizations were made, use the printed Financial Statement Design report to re-enter the customizations.  Also use this report as a guide to make the same customizations to each division or department. 

 E:  Repost all Transactions in all months: 

  1. Go to Write-Up Processing > Print Reports > select the General Ledger and Payroll Journal reports to print.  Print one month at a time starting with the first month in the prior year and ending with the last month of transactions. 
  2. If the Accounts Receivables and Accounts Payables modules are used, do not reprint the G/L Distribution Reports because this will cause the Journal Entries in the Special Journals to revert to the combined accounts.
  3. Enter the Special Journals for AR and AP and reassign the GL distribution to the appropriate departments/divisions.

 F:  Reassign the Sales accounts in the AR Setup Wizard to reflect the department/division accounts.

How to set up a departmental or divisional company.

How to Convert a divisional to departmental or vice versa.

How to Convert from Departmental or Divisional to a Standard Company

Was this helpful?

You must sign in to vote, reply, or post
Labels (1)