Establishing departments in AccountRight and new Essentials to report correctly in Statutory Reporter

AccountRight and Essentials uses prefixe to identify the account classification, such as income or expenses in the Accounts list. This means when using Statutory Reporter, suffixes or sub codes must be used to define which item belongs to each department. For example:

 

Account Code	Description	Account Type
4-1000	Department Names	Header
4-1001	"Name of Department 1"	Detail
4-1002	"Name of Department 2"	Detail

These accounts are used to define the name of the department as well as the account code suffix relating to each department. This means that:

• all profit and loss accounts with an account code ending in 1 will relate to Department 1 and appear in Department 1's Department Income Statement.
• all profit and loss accounts ending in 2 will relate to Department 2 and appear in Department 2's Department Income Statement.

Confused? This is what it looks like:

In this example, the "Name of Department 1" is Sydney which is also the account description of account code 4-1001.

In this example, the "Name of Department 2" is Melbourne which is also the account description of account code 4-1002.

There shouldn't be any journals or transactions allocated to these Department Name accounts. The only purpose of these accounts is so that Statutory Reporter can identify that the ledger contains departments and their name.

Where there is income or expenses incurred by the business that is not department specific, create a new account for this expense with the last digit ending in zero (0). These amounts will appear separately on the Summary Department Report. For example:

For information on creating and editing account codes in Client Accounting refer to the Online Help topic: Accounts

For each Income and Expense account, specify which account's balance relates to each specific department by changing the last digit in the account code to the department identifier.

The Accounts List should look similar to the following example:

1. From within the Client Accounting module, click Edit configuration details. The Edit Configuration Details window appears.
2. Select This ledger uses departments then click Edit department settings. A tick appears in the checkbox and the Department Settings window appears.
3. Select Sub Code from the Departments are defined by down-down menu. Additional fields display.
4. Type the number of digits displayed in the main account code (i.e. the number of digits displayed before the sub-code). For an AccountRight chart of accounts, this number will be 4.
5. Select Use the name of a specific account in the department then type the code for that account in the Main code field. In the above example, this will be account 4-1000.
   

   

6. Click OK. You are returned to the Client Configuration window.
7. Click OK. The Client Configuration window closes.

You are now ready to prepare your journals and workpapers. For information on preparing and completing workpapers refer to the Online Help topic: Preparing workpapers

1. Open Statutory Reporter by navigating to the client's Client Accounting > Reports tab. The Reports tab is selected and a list of available reports appear.
2. Click Account Groups on the Tasks bar. The Statutory Reporter - Account Groups window opens.
3. Allocate each account code or range to the appropriate Account Group. Repeat this step until all account codes have been allocated.
4. Click OK to save and close the Statutory Reporter - Account Groups window.

For information on allocating accounts to a group refer to the Online Help topic: Allocating account ranges to account groups

You do not need to create custom account groups to produce departmental reports. The Department Income Statement will allocate each account code ending in 1 to Department 1's Income Statement and account codes ending in 2 to Department 2's Income Statement. This means you will receive a separate income statement per department.