Divisions

July 21, 2015 in Cash Management,General Ledger

Purpose

This procedure is used to enter or modify the details of Divisions. Divisions represent either areas of operation or differentiate types of products and services.

Divisions may be used to designate different areas of operation (e.g. Wholesale, Manufacturing, Fabrication, Retail, Service) or they could be used to specify dealings in different types of products or services (e.g. Computer Sales, Consumables, Service, Spare Parts). Each Division is defined by a Division code. These codes are used to validate the allocation of sales, purchases, expenses and inventory among various business units. Valid Branches may be allocated to each Division – to be used during manual General Ledger postings.

In addition to their normal use to designate different areas of operations or “departments”, such as “Wholesale” and “Retail”, as mentioned Division codes may also be used to specify dealings in different types of products. This can be easily achieved because Online allows your to allocate Division against each Product Group in the Inventory system. This allows for automatic GL Postings of “Sales”, “Cost of Sales”, Stock On Hand etc. for each Product Range as required. Such a setup would require the selection of Sales Postings by Product Division in the Accounting Formats. An example of this type of structure appears below:

Division Code Short Form Division Name
C CP Copper Products
A AL Aluminium Products
0 DEF “Default” for un-allocatable transactions

Division codes can also be used to specify different types of services in the same way, as in the following example:

Division Code Short Form Division Name
1 CN Consulting services
2 CL Clerical services

 

When you set up your Division code file you should establish a “default” Division (for example, Division code “0”) to which you can allocate transactions of a type that cannot be properly assigned to a specific Division. If you have only one Division, you should set up that division as the “default”. All transactions will then be assigned to that division.

At least one division must be established. Each user can have a default division associated with their User Id. This user default is used to ‘auto select’ the division for the user where division entry is required in transactions. For system postings to General Ledger, you need to set up a default division in the system Control Pointers.

Note: The length of the Division code is pre-defined in the system setup as part of the Accounting Formats. As with any data entry, be mindful of the type and complexity of your Division codes as they are entered frequently throughout the system, in particular during any postings to the GL.

Data Input

­

Step 1 – Division Code

Division Code

Enter a new, unique division code, that does not already exist on the system. You may select an existing division code for editing.
The number of characters for this code is defined in the Accounting Format procedure. You need to set up the Accounting Format before entering any divisions.

For details on the use of “codes”, see The Role of “Codes” in Online Advantage
Return to the Top

Step 2 – Description

Short Name

Enter an abbreviated description for the division. This appears on reports and screens where space is limited.

Division Name

Enter the division name.

For more details on descriptions, see The Role of “Names & Descriptions” in Online Advantage

Posting Allowed

Select whether postings can be made to this division or not. If posting is not allowed, this signifies that no manual General Ledger posting is allowed where the General Ledger code contains this division code. This prohibition can be overridden via the use of Valid Chart of Accounts.
Return to the Top

Step 3 – Branches

Branch

A list of valid Branch codes can be entered here to nominate those branches that can be used in conjunction with this Division code during manual General Ledger postings.
Select the branch code and click Add to include it into the list to prevent users posting to this Division for any Branch other than the ones that you have listed.
See related topic: Branches
Return to the Top

{ 0 comments… add one now }

Ask a Question or Leave a Comment

Previous post:

Next post: