How to create departments

Summary

If your company has multiple departments, each with their own sales and costs, you may want them to appear separately on the Profit & Loss report. In Sage 50 Forecasting you can create departments so that they appear on the Profit and Loss report under your specified headings.

Note: An example company with two departments named Retail and Wholesale is used throughout this article. If you are following the example, first create a new forecast. The Sales and Direct Costs sections appear by default.

Answer

These are the basic steps that explain how to create a department. They include:

To create a department

To move records to a new department

To create a gross profit formula

Sample report

Note: Quick steps provide the minimum amount of information you need. For further information, please refer to the Detailed steps tab.

To create a department

1. Record List > right-click Direct Costs > New Section > New Department.

2. Right-click New Department Section 1 > New Section > New Department.

3. Right-click New Department Section 1 > Rename > type Retail > repeat this step to rename New Department Section 2 as Wholesale.

4. Right-click Retail > New Section > Direct Costs Sub-Section.

5. Right-click Retail > New Section > Sales Sub-Section.

6. Repeat steps 4 and 5 for Wholesale.

To move records to a new department

1. Record List > Sales section > new department Sales section > select the sales record > drag and drop the record into the
destination Sales section.

2. Repeat step 1 for the Direct Costs section.

Note: You can only move Sales records to Sales sections, and Direct Cost records to Direct Cost sections. For example, you can not move an other income sales record to a cost section, however it can be moved to a department sales section.

To create a gross profit formula

1. Select the required department > New Section drop-down list > right-click New Department > Rename > enter Retail Department Gross Profit.

2. Right-click Retail Department Gross Profit > New Record > Memo > complete the Edit New Memo Record 1 window as follows:

Details

Record Name Enter a name for the record, for example, Gross Profit.

Memo Data

Orig. Budget Entry Method Choose Use Formula.
Enter Formula Double-click the sales record for the department, enter a minus symbol, then from the
drop-down list double-click the cost record for the department.

Note: If you have more than one sales or cost record for a department, you must choose all records. To add all sales records together, use brackets, and the plus operand. To add all cost records together, use brackets and the plus operand then subtract one bracket set from the other.

3.        Select any additional options as required > Save.

Sample Report

Departmental Forecasting

PROFIT & LOSS FORECAST

Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12
RETAIL SALES
Sales 20,000 20,000 20,000 20,000 20,000 20,000
20,000 20,000 20,000 20,000 20,000 20,000
RETAIL COSTS
Purchases 12,000 12,000 12000, 12,000 12,000 12,000
12,000 12,000 12,000 12,000 12,000 12,000
RETAIL DEPT GROSS PROFIT 8,000 8,000 8,000 8,000 8,000 8,000
WHOLESALE SALES
Wholesale 15,000 15,000 15,000 15,000 15,000 15,000
15,000 15,000 15,000 15,000 15,000 15,000
WHOLESALE COSTS
Purchases 9,750 9,750 9,750 9,750 9,750 9,750
9,750 9,750 9,750 9,750 9,750 9,750
WHOLESALE GROSS PROFIT 5,250 5,250 5,250 5,250 5,250 5,250

You can see Retail Sales and Retail Costs followed by Retail Dept Gross Profit. The next department shows Wholesale
Sales followed by Wholesale Costs and a gross profit line for the Wholesale department.

Note: You must add the custom formula for the Wholesale department to your Profit & Loss as with the Retail department
in the above section, To create a Gross Profit formula.

The overall gross profit figure for all departments appears on the Profit & Loss report after the last department, before
the operating profit figure.

The following detailed steps contain everything you need to help you create departments.

To create a department

You can create departments within the Sales and Costs sections of the Record List to provide further detail on your reports
and to enable the structure of the Record List to reflect that of your organisation.

In Sage 50 Forecasting you can create an unlimited number of departments and secondary level sub-departments.

1. In the Record List, right-click Direct Costs, choose New Section then choose New Department.

2. From the Record List, right-click New Department Section 1, choose New Section then choose New Department.

3. Right-click New Department Section 1, choose Rename and enter Retail, then repeat this step to rename New Department
Section 2 as Wholesale.

4. Right-click Retail, choose New Section then choose Direct Costs Sub-Section.

5. Note: So they appear correctly in the Record List and on reports, Direct Cost sections must be created before Sales sections.

6. Right-click Retail, choose New Section then choose Sales Sub-Section.

7. To create costs and sales sections for the Wholesale department, repeat steps 4 to 5 for Wholesale.

You have now successfully created new departments in Sage 50 Forecasting and can create records for those departments as required.

A department appears on the Record List in the same way as a section. The main difference is in the way a department contains records. A department can only directly contain memo records. To add other record types into a department, you must first create Sales and Direct Cost Sub-Sections within the department then create the records within them.

To move records to a new department

1. From the Record List, expand the existing sales section and the new department sales section.

2. Select the existing sales record then click and drag the cursor to the destination sales section.

3. Repeat steps 1 and 2 for the direct costs section.

Note: You can only move sales records to sales sections, and direct cost records to direct cost sections. For example, you can not move an other income sales record to a cost section, however it can be moved to a department sales section.

You have now successfully moved existing records to new sections within your forecast.

 Version

V5, V12

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