When you select Departmental Accounting on the Company Setup>Preferences screen, the Departments tab appears on the Company Setup screen. Use this screen to define departments for reporting to analyze income and loss for different profit centers within a company.
You can use departments to organize employees, manage bills, or enter transactions by department on customer invoices or payments. You can assign an entire invoice to a single department, or assign each line of an invoice or bill to a different department. When you enter transactions, assign them to the applicable department.
You also have the option of assigning default departments. For more information on assigning default departments to customers and vendors, see Add, Edit, or Delete Customer Information or Set Up, Edit, Import, or Delete Vendors, respectively.
You can use the General Ledger and Departmental Transactions Reports to track departmental activity, or print the Income Statement by department.
When you select Non-Profit as the Entity Type on the Company Setup>Details screen, the Funds tab appears and sets up the Unrestricted Net Assets, Temporarily Restricted Net Assets, and Permanently Restricted Net Assets funds into which revenue and expenses for non-profit organizations are booked.
The columns of the table that appears on both the Departments screen and the Funds screen are:
Department Code: A code of letters and digits (no special characters) you assign to a department.
Department Name: A descriptive name you assign to a department.
Short Name: A label you assign for a department that appears as a column heading for reports or financial statements.
Primary Fund: A column which appears on both screens, but applies only to non-profit funds and is used for proper year-end closing.
To set up departments or funds, go to Company Setup>Departments or Company Setup>Funds, respectively, if you are not already on one of these screens.
To set up or delete departments:
Enter an alphanumeric code in the Department Code column. Use only letters and digits. Do not use special characters.
Enter a descriptive name for the department in the Department Name column.
Enter a name to display in column headings on reports or financial statements in the Short Name column.
Click Save to save your entries.
To delete a row from the table, click the red X at the end of the row. You can only delete a saved department if it does not have transaction activity or a current balance.
To set up or delete funds:
The Funds screen displays the three funds the system automatically creates when you initially set an organization up as non-profit:
Unrestricted Net Assets
Temporarily Restricted Net Assets
Permanently Restricted Net Assets
Note: These three funds are automatically linked to Capital accounts (Retained Earnings class) of the same name, into which revenue and expenses for non-profits are booked. While it is possible to add other funds on the Funds screen, we strongly recommend that you do not do so without creating Capital accounts to match.
For any of the funds in the table, select Primary Fund if you have miscellaneous money at year-end. Use the Primary Fund column for proper closing of year-end funds.
Click Save to save your entries.
To delete a row from the table, click the red X at the end of the row. You can only delete a saved fund if it does not have transaction activity or a current balance.