Establishing departments using an AE Accounts style chart of accounts in AE Ledger

Use a dedicated control account code to define your departmental headings.

AE Accounts uses prefixes to determine which account belongs to each department. For example:

These accounts are used to define the prefix number that relates to each department heading. In this example:

• all profit and loss accounts with a prefix of 1 do not belong to a department and will not appear in a Department Income statement. Instead, these account balances will display separately on the Summary Department report.

• all profit and loss accounts with prefix beginning with 2 will relate to Department 1 and appear in Department 1's Department Income statement.

• all account codes with a prefix beginning with 3 will relate to Department 2 and appear in Department 2's Department Income statement.

For example:

There should not be any transactions allocated to the departmental heading accounts.

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

Add a prefix to the account code of each Income and Expense account to specify which account balance relates to a specific department.

The Chart of Accounts should look similar to the following example:

1. From within the Client Accounting module, click Edit configurationdetails. The Edit Configuration Details window appears.
2. Select This ledger uses departments then click on Edit department settings. A tick appears in the checkbox and the Department Settings window appears.
3. Select Prefix from Departmentsare defined by drop-down menu. Additional fields display.

4. Select Prefix separator and key in the character that displays after the division number. For example, the prefix separator in account 2.90 is a full stop ( . ) where 2 is the division number and 90 is the account code representing sales income. In this example, the prefix separator will be (.) which is commonly used in AE Accounts.

5. Select Use the name of the first account in the department.In the above example, the name of the first account will be account code 2 “Name of Department 1” or 3 “Name of Department 2”.
6. Enter the prefix number in the Prefix of accounts without a department field if there are income or expense accounts that do not belong to a department. In this example, the prefix will be 1.
   

   

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

8. 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 the relevant account code or range to the appropriate Account Group. The account range appears in the nominated account group folder.
4. Repeat this step until all account codes have been allocated, then 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 don't need to create custom account groups to produce departmental reports. The Departmental Income Statement will allocate each account code with a prefix of 2 to Department 1's Income Statement and account codes with a prefix of 3 to Department 2's Income Statement. This means you will receive a separate income statement per department.

1. In the Reports tab, click on the checkbox to select a report in the Reports table to be included in the Financial Statements. The following Departmental Profit and Loss reports are available in Statutory Reporter:  
   
   • Summary Department Report
   • Consolidated Department Report
   • Department Income Statement
2. Once you have selcted all the reports you wish to include in the Financials, click Preview. The Report Preview opens in a new window.