Departmental or Cost Centre Accounting
Departmental or Cost Centre Accounting
Departmental or cost centre accounting has always been desired but lacking in many accounting solutions. It has not been easy to departmentalise our income and expenditure due to the fact that we have been breaking our analysis on project costing, item tracking and customer costing as priority and it has been overwhelming to add in just one more.
In this article, we are going to touch on how to efficiently manage departmental costing easily in Moneyworks. Features are available in Moneyworks GOLD and Datacentre edition. I have created 3 part video to show you how you can start managing your departmental costing easily.
Part one of the video shows you how you can create department groups for example: Sales Department to track individual sales person as department, Vehicle Department to track vehicle expenses etc. First create the group of department (eg Sales department in this case), the create the various departments to link to the sales department (in this case the sales person name). Once you have done that, you are ready to use them to do the tracking by linking them to the relevant income or expense account.
The above video shows you the next step of how to link your departments to the relevant accounting code. In our case, we are going to track sales person’s sales and cost related to the sales. After you have link the relevant department to the accounts code, we will be linking the accounts code to the items by “append salesperson” in the item details. Once the linking is done, we are ready to use it on our transaction. Let’s dive into to last part of the video below to see how we can use it in transactions:
This last part will show you how you can tag your department or salesperson’s code into your sales transaction which in turn will automatically append the salesperson into the item sales when you generate your invoice. Ultimately we will also show you how to generate a salesperson report (profit/loss) in the report section.
Hope this helps you effectively manage your departmental costing with ease.
Please feel free to contact us for further clarifications
William Tan (65898878 Ext 7001)
