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Creating departments in AO Classic General Ledger

This support note applies to:

  • AO Classic General Ledger (AU)
Article ID: 23420

Within MYOB Accountants Office General Ledger, you can create an entity with different departments and then report on the results. The reports created for departmental reporting will allow you to prepare compliance reports, departmental management style reports and consolidated reports.

Departmental accounts are similar to the standard chart of accounts, except for a departmental number that is added to the front of the account number.

For example, 300 Accounting will be 1300 Accounting for the General Department, and 2300 Accounting for Department One.

The departmental templates and general ledger formats are designed to cater for nine unique departments. This can be increased to 99 by altering your chart structure within the client options (contact Technical Support prior to increasing to more than 9 departments).

All templates include livestock and access to livestock valuation.

Preparing the General Department Accounts

Prepare carefully by spending ten minutes setting up the client prior to posting your first journal. This can save you hours of time and provides you and your client with meaningful management reports.

General Department (1,000 - 1,999)

The General Department can be used as a full operating department or as a department with accounts that do not relate directly to the operation of other departments.

The General Department (account range 1,000 - 1,999) include all equity/capital accounts, financial information accounts, provision for GST accounts, as well as income, expenses, asset & liability accounts.

The following account ranges are primarily used as departments within the entity. They contain all the revenue, expense, assets & liabilities specific to that department. The only exception is provision for GST which is included in the General Department.


ABN 11 111 111 111

General Department

Department One

Department Two

Department N

1,000 - 1,999

2,000 - 2,999

3,000 - 3,999

4,000 - 9,999

Equity / Capital

Income / Expenses

Assets / Liabilities

Income Allocation

Financial Informatio

nProvision for GST

Provision for Income Tax

Income / Expenses

Assets / Liabilities

Provision for Income Tax

Income / Expenses

Assets / Liabilities

Provision for Income Tax


The templates for each entity type include primary production accounts for the General department (1,000 - 1,999) and Department One (2,000 - 2,999). If you require further departments, see the To add a department section.


All equity capital accounts are to be journalled in the 1480-1699 account range. This includes issued shares, reserves, settlement sum, issued units, income tax expense, dividends, distribution to beneficiaries/partners, and retrospective adjustments.

Income Allocation

Income allocation is completed in the same manner as a standard ledger. However the accounts have the numeral 1 added to the account number. The income allocation account is automatically set to the correct account within the departmental template.

Entity TypeNumberName
Company1639Profit this year.
Trust1500/02Profit earned this year.
 Then you transferred via journal to the beneficiaries at 1501/02, 1502/02, 1503/02 etc.
Partnership(50%) 1501/02Share of profit
 (50%) 1502/02Share of profit
Sole Trader1501/02Share of profit
Financial Information Accounts

All financial information accounts are located in the 1,970-1,999 range. These include:

  • Abnormal items
  • Capital Commitments
  • Borrowing Costs
  • Operating Lease Commitments
  • Franking Account Balance
  • Income Tax Reconciliation
  • Corporate Trustee Information

Just to mention a few. These accounts are checked whenever you print/preview Notes to Accounts or print certain reports.

GST Accounts

Each Departmental template has GST accounts included in the general department. These are:

  • 1908 / 01 Output Tax
  • 1908 / 02 Input Tax
  • 1908 / 03 Output Tax Adjustments
  • 1908 / 04 Input Tax Adjustments
  • 1908 / 05 Private Adjustments

The GST report within MYOB Accountants Office General Ledger uses these accounts to print an accurate GST Report. If you select different accounts, the GST report may not be accurate.


Adding Departments

All the departmental templates included with MYOB Accountants Office General Ledger include the general department and department one (account range 1,000 - 2,999). At any time, you can add further departments to your job.

To add a new department
  1. Select the following menu path: General Ledger > Accounts Utilities > Create a new Department. The Create New Department Account codes windows appears.
  2. Enter the department code to copy in Enter the Department Code to copy from. Department code is entered
  3. Enter new department code in Enter the Department code for the new Department and click OK. The message "Are you ready to create these accounts in Department?" appears.

    Always add from the last department created. I.e. If you have four departments (1,000 - 4,999) you should copy from department 4. This will ensure your accounts are uniform throughout the entire entity and when consolidating, all relevant account names will appear.

  4. If you are ready to create the new department, click Yes. The message "Process complete" appears.
  5. Click OK. The Main General ledger window appears.

    Only add departments if required. The more departments that are created within the chart of accounts, the longer the processing time required to prepare and print departmental reports.

Add to Accounts & Stock: When creating a new department, you may need to alter the "Add to Accounts" tag within accounts maintenance for Stock on Hand x710 - x729 to the new department number.

Livestock Valuation: The Account Codes tab may need to be amended to ensure the correct department is selected, so that the automated journals are posted to the correct accounts.


Maintaining the Chart of Accounts

The time taken in preparing to create a departmental ledger will increase the integrity of your chart of accounts. The departmental consolidation process is the same as consolidating different entities. There are a number of rules and procedures to be followed to ensure the successful consolidation of a departmental client. Most of these relate to the chart of accounts.

Account Names

When we consolidate two or more departments, MYOB Accountants Office General Ledger reads the control account name from the General Department, 1,000 - 1,999, i.e. Account 1302 Advertising, whilst the sub accounts names are read from the last department created i.e. Account 3302/01 Yellow Pages.

When a detailed Profit & Loss report is printed, it selects the name of the accounts as follows;

Assume Department Two 3,000-3,999 is the last department created


Incorrect Chart of Accounts structure

1676Shares in Outside Companies 
1676/01MYOB Ltd10,000
1676/02Telstra Ltd8,000
1676/03Qantas Ltd4,000
2676Shares in Listed Companies 
2676/01BHP Ltd15,000
2676/02Commonwealth Bank Ltd20,000
2676/03Coles Myer Ltd3,500
3676Shares in Outside Companies 
3676/01Woolworths Ltd4,500
3676/02MYOB Ltd9,000

Extract from a detailed Balance Sheet / Statement of Assets & Liabilities

1676Shares in Outside Companies 
3676/01Woolworths Ltd29,500
3676/02MYOB Ltd37,000
2676/03Coles Myer Ltd7,500

Inter-departmental Loan Accounts

Two entities within a group can have loan accounts between them. Once these entities are consolidated, the loan account balances counter each other to leave a nil balance.

The same inter-company loan account principle applies to departments whereby departments can loan each other funds and upon consolidation, these loan account balances are eliminated.

This can be achieved by posting the debit & credit amounts of the loan account to the same account number, however in different departments. I.e. Loan from Accounting Practice, 2,000 - 2,999, to Fishing Charter, 3,000 - 3,999, of $50,000.

2696Loan - Fishing Charters50,000 
2680Bank 50,000
Funds transferred to Fishing Charters
3696Loan - Accounting Practice 50,000
Funds transferred from Accounting Practice

When consolidated, accounts 2696 & 3696 will form one balance and as the debit balance equals the credit balance, the result will be a nil balance shown in the consolidated reports.

Provision for Income Tax

Each department will contribute to the overall tax liability of the entire entity. Each department's liability can be posted within the department; however the Income Tax Expense (Capital) must be posted to the general department (1,000 - 1,999).


1480Income Tax Expense100,000 Equity Acct - General
1904Prov for Income Tax 50Liability Acct - General
2904Prov for Income Tax 40,950Liability Acct - Dept 1
3904Prov for Income Tax 59,000Liability Acct - Dept 2
Being Income Tax on $294,118 taxable profit.
Deleting unused accounts

The Delete unused Accounts function should be used cautiously when in a departmental client. Please be aware of the following;

When using Delete Unused Accounts

  • Never select, "Select All" to delete. Always individually select each account to be deleted.
  • Only delete individual accounts in the General Department (1,000 - 1,999) if you are sure the account number is never going to be used in the other departments.
  • Deleting unused accounts will improve the speed of printing & pre-processing the Notes to the Accounts reports.
Asset Ledger

The Asset Ledger within the departmental templates has been amended to use the department number. The default account numbers are all associated with the General Department (1,000 - 1,999). If you use the "Post to General Ledger" option within the Fixed Assets module, you may need to alter the account numbers within the specific asset.


We have plant and equipment for the General Department, Department One and Two. You will need to alter the account numbers for each specific asset when created as follows;



Dept 1

Dept 2





Asset Cost




Accumulated Depreciation




Sales Proceeds




Producing Reports

We use the departmental structure for a general ledger client to produce reports that enable you and your client to make informed decisions about the business or segments within a business. We have endeavoured to create all the reports used in a standard client, and have also added several extra reports. The reports should also allow you to conform to all required compliance issues.

Departmental Longform Balance Sheet / Statement of Assets & Liabilities

A difference between a departmental structure and a standard structure client is the balance sheet. A true balance sheet will only balance if it includes equity, assets and liabilities for the entire entity. As equity cannot reliably be dissected into departments, we have created a longform balance sheet, which includes;

  • General Department, 1,000 - 1,999: Assets, Liabilities
  • Entity as a whole: Equity
  • Other Departments: Net Assets/Liabilities

The statement of Assets & Liabilities shows all assets and liabilities of single department. It should be read in conjunction with the Departmental Longform Balance Sheet and Consolidated Balance Sheet to give the reader a comprehensive record of assets & liabilities for the entity.

105Trading Profit & Loss Statement100Trading Profit & Loss Statement
250Longform Balance Sheet230Longform Balance Sheet
260Statement of Assets & Liabilities  
1110Livestock Trading Statement1100Livestock Trading Statement
1220Trading Statement1200Trading Statement
1310Rental Income Statement1300Rental Income Statement
1408Profit & Loss Statement1402Profit & Loss Statement
  110Statement of Financial Performance
  200Statement of Financial Position - Current/Non-Current
  210Statement of Financial Position - Liquidity
  1420Appropriations Statement
  8000Notes to the Accounts


These general reports are located in the departmental master that relates to the entity type. There are other reports such as Directors Report, Partnership Distribution Statement etc. These reports have all been amended to cater for departments and should be added to your report listing as needed from the appropriate master.

Master & Template Names
30 Departmental Sole TraderZA30TDSTZZAU30 - Dept Sole TraderZAUMDST
32 Departmental PartnershipZA32TDPZZAU32 - Dept PartnershipZAUMDP
34 Departmental Small CompanyZA34TDSCZZAU34 - Dept Small CompanyZAUMDSC
36 Departmental TrustZA36TDTZZAU36 - Dept TrustZAUMDT
  ZZAU40 - Departmental NotesZAUMDN
  ZZAU42 - Dept Note 1 OnlyZAUMDN1


My Report does not show account descriptions

Ensure the relevant account code is in the General Department, 1,000 - 1,999.

My report shows an incorrect name for a sub account

Ensure the account name is correct in the last department created. If incorrect, you will need to change the name. There could also be another issue, due to the chart integrity being incorrect. Please refer to the Maintain your Chart of Accounts section.

My Report shows "name of General Department" or "Name of Department One" in the top right hand corner

To add the name of a department to a report, change the account description in account;

  • 1,000, General Department.
  • 2,000, Department One
  • 3,000, Department Two etc. Account number change will allow you to efficiently change a large amount of account numbers from one department to another or from a standard chart of accounts structure to the departmental, i.e. xxx/xx to a department xxxx/xx.
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