EQD: GL Departments
EQD's Department Maintenance feature provides your company with the ability to departmentalize the General Ledger so you can separate financial information by either sales office, salesperson, or actual physical departments (ie; print shop, bindery, etc.).
It is recommended that you discuss what you want to achieve with your accountant prior to starting the departmentalization process in EQD.
Outlined below are three reasons why you would want to departmentalize and how to process transactions so you get the expected results.
Different Physical Departments
Expense
If you are using this feature because you have different physical departments you will need to code/disburse your vendor invoices to the applicable department.
Revenue
The revenue stream, if any, can be captured through the product groups or consultant.
You can either create a product group for each department's revenue item(s) using their sub-account (-1000) in the Income Acct field or you can create a Consultant for each department and process purchase orders and/or invoices in the same manner as the Tracking per Consultant process.
Tracking per Consultant
Expense
When expenses (vendor invoices) are entered through A/P, EQD asks you if you want to re-write the disbursements based on the expenses.
Saying Yes to this question tells EQD to take the parent account from the product group (5020-) and the sub account (-1000) based on the consultant and "marry" them (5020-1000).
Revenue
When an item, special pricing or add on charge is entered into EQD a product group must be assigned to it.
The product group has the Master/Parent account (5020-) assigned to it.
Each client and/or invoice has a consultant assigned to it and each consultant has a department assigned to them. The department has the Sub-Account (-1000) assigned to it.
When invoices are posted to A/R, EQD takes the parent account from the product group (5020) and adds the sub account (1000) based on the consultant in order to post to the correct revenue account (5020-1000).
Separate Sales Offices
Expense
When expenses (vendor invoices) are entered through A/P, EQD asks you if you want to re-write the disbursements based on the expenses.
Saying Yes to this question tells EQD to take the parent account from the product group (5020-) and the sub account (-1000) based on the consultant and "marry" them (5020-1000).
Consultants are assigned to their respective offices through the department code in Consultant Setup.
Revenue
When an item, special pricing or add on charge is entered into EQD a product group must be assigned to it.
The product group has the Master/Parent account (5020-) assigned to it.
Each client and/or invoice has a consultant assigned to it and each consultant has a department assigned to them. The department has the Sub-Account (-1000) assigned to it.
When invoices are posted to A/R, EQD takes the parent account from the product group (5020) and adds the sub account (1000) based on the consultant in order to post to the correct revenue account (5020-1000).
Department Setup
Once you have decided how you want to departmentalize you will need to follow the outlined instructions.
Following the instructions as outlined below prevents you from having to go to the chart of accounts twice: once to define which accounts you want departmentalized and once to build the consolidated (totaling) accounts.
Please read to the very end before starting this process.
To begin, print a copy of your chart of accounts to use as a worksheet.
Go to:
G/L > G/L Reports > G/L File Listings > Chart of Accounts
Turn on Departments
Once you have determined which accounts you are going to departmentalize it is time to configure EQD for departments.
Go to:
G/L > G/L File Maintenance > G/L Configuration
Select Use Departments, click Save.
This turns the Departments feature ON in EQD.
WARNING: Do not post invoices from O/E to A/R or post expenses to purchase orders until you have finished this setup process. EQD will be looking for specific department information during the posting functions.
Define the Departments
The next step is to define the departments.
Go to:
G/L > G/L File Maintenance > Department Maintenance
Click Add.
Department Options
Department ID:
Enter an ID/Abbreviation for the department.
Description:
Enter a description for the department, office or salesperson.
G/L Sub Account:
This is the number the department represents. This number will replace the last four digits of each departmentalized general ledger account. (5020-xxxx)
Save:
Clicking this option saves your entry and exits the Edit Department window.
Exit:
Clicking this option cancels your entry and exits the Edit Department window.
When you save during this step EQD asks you if you want to add the new department's accounts to the General Ledger.
If you have already selected the departmentalized accounts on the Chart of Accounts you can select Yes.
If you have not, select No.
Select the Accounts to Departmentalize
The next step is to determine which accounts are going to be departmentalized.
Go to:
G/L > G/L File Maintenance > Chart of Accounts
By scrolling through the Chart of Accounts select each Parent account (ends in 0000), click Edit.
Click Allow Departments.
NOTE: Only the Parent account needs the Allow Departments selected.
When you click Save EQD asks you if you want to add the new department's accounts to the General Ledger.
Click Yes.
The system adds accounts to correspond with the departments that were setup.
Build Consolidated Accounts
After you have selected which accounts are to be departmentalized you will need to add the Consolidated Accounts.
Rather than entering them on an individual basis go to the Program menu and select Build Consolidated.
This process creates the consolidated accounts xxxx-9999 and attaches it to the appropriate department accounts.
Departments Based on Separate Offices
If you have defined departments because you have multiple offices you may want to also create Alternate Addresses in Company Maintenance and use them on your documents.
To implement this feature refer to Alternate Address for full instructions.
Departments Based on Consultant
When you define departments based on Consultant you need to assign each consultant to their departments.
Go to:
O/E > O/E Maintenance > Consultant Information > Consultant Setup
Locate the consultant, click Edit and enter their department in the Department field.
Click Save.
Repeat this process for all applicable consultants.
If a consultant belongs to multiple departments they will need multiple consultant codes.
