Premium 2011
Setting Up the
DIVISION (Project)
Module
Contents

The DIVISION Module: Overview

To Set Up a Division
3
- Set up DIVISION title and Division names

6
Set up DIVISION Default Settings
- Budget 9
- Allocation 10
- Names 11
Slideshow 11A
The DIVISION Module:
Overview
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, you
can:
•
•
•
•
Allocate all or part of a transaction to one or more
divisions
Allocate employee payroll expenses to one or more
divisions
Track a division's costs and earnings
Produce summary or detailed reports on divisions
Division Allocations
You can allocate amounts from the following types of
transactions to divisions:
•
•
•
•
•
Sales and Purchases. You can distribute all or part of
an item's revenue or expense to one or more
divisions.
Paycheques, including payroll cheque runs
Miscellaneous transactions
Inventory adjustments
Time slips
All revenue and expense accounts are automatically set up to
allow division allocations. You can also allocate assets to a
division, but you must first set up the asset account to
allocate amounts for divisions.
The DIVISION Module: Overview
% of allocation in hours
(continued)
How is the DIVISION Module
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.
Allocated
amounts
to
specific
divisions
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.
PAYROLL
Run
Journal
Entry
PAYROLLRelated
Expenses
The DIVISION Module of
HotTubs Company: Overview
(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: Set up Division
Title and Division Names
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 Structures
Division Title:
STORE
DEPARTMENT
Division Names:
Toronto
Vancouver
Edmonton
Montreal
Ladies’ Wear
Men’s Apparel
Children’s Wear
Footwear
To keep track of revenues/expenses
of each store.
To keep track of revenues/expenses of
each department in a store.
Division Title:
SALES REP
COMPONENT
Division Names:
Mundy
Dennison
Chester
Jacobs
Tower Case
Motherboard
Hard Drive
Ports
To keep track of revenues/expenses
of each sales representative
To keep track of cost of each
component of an assembled product.
Division Title:
DIVISION
DIVISION
Division Names:
Paperbacks
Hard cover
3-ring bind
cerlox bind
Site #456
Site #589
Site #896
Site #674
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: Set up Division
Title and Division Names
DIVISION title
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
Names
To Set Up a Division:
Set 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 Division
Set Up Default Module Settings:
Allocation
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 Division
Set Up Default Module Settings:
Names
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.
More…
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