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How to Set Up a Departmental or Divisional Company

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How to Set Up a Departmental or Divisional Company

Problem Description

How to set up a new multi-departmental or divisional company.

See also:

How to Convert a Standard Company to a Departmental or Divisional Company

How to Convert from Departmental to Standard Company

Detailed Instructions

To see a video demonstration on this topic, click the video below.

To set up either a Multi-Departmental or Divisional Company, follow these steps:
  1. Go to Write-Up > Update Company Files > General Ledger Accounts.
  2. Set up a new  Chart of Accounts using the structure outlined below.
    • Note!  Only the combining accounts are set up in this step, the individual department and division accounts are set up automatically later.
    • Enter the Tax Page and Line applicable to the Combined accounts, the program will assign the same when the utility is used to create departments/divisions.
  3. Multi-Departmental Companies:
    • Consolidated Expense accounts, use Type C  Departmental Expense accounts will be Type E
  • Consolidated Revenue accounts, use Type I Departmental Revenue accounts will be Type R
  • Liability accounts, use Type  L
  • Asset accounts, use Type A
  1.   Divisional Companies:
    • Consolidated Asset accounts, useType P
      • Divisional Asset accounts will be Type A
    • Consolidated Liability accounts, use Type D
      • Divisional Liability accounts will be Type L
    • Consolidated Revenue accounts, use Type I
      • Divisional Revenue accounts will be Type R
    • Consolidated Expense accounts, use Type C
      • Divisional Expense accounts will be Type E
  2. Go to Write-Up > Data File Utilities > Multi-Departmental Accounts.
    • This utility creates the individual chart of accounts for each department or division.
  3. Select the Number of new departments or divisions to create.
  4. Click Continue.
    • When the new accounts are created, the program adds the department (or division) number in front of the consolidated account number.
    • For example, if the consolidated sales account is 3000, then the sales account for department 1 will be 13000.
    • NOTE! It will select automatically assign the correct account types R, E for a departmental Revenue and Expenses, or A, L, R, E for divisional Assets, Liabilities, Revenue and Expenses.
    • The added accounts will apply the same Tax Page and Line as the associated combined accounts.
  5. At the prompt 'Now ready to create new departmental or divisional accounts. Are you sure?' answer Yes.
  6. Go to  Write-up Processing > Update Company Files > Financial Statements > Statement Templates.
  7. Change Type of Financial Statements to Divisional or Multi-Departmental.
  8. Enter the number of departments or divisions (up to 999).
  9. Enter the combined account ranges for the Balance Sheet, Income Statement and Cash Flow Statement tabs.
  10. For instructions on editing the department/division names, click here.

NOTE: The Create Multi-departmental Accounts utility will begin with the first unused department or division number. You can use the Del/Renumber Accounts option to renumber them later.

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