The user should determine the number of divisions and departments that will be used by the company prior to setting up the general ledger chart of accounts. The number of required divisions and departments will be based on the accounting needs of the user. The system requires that at least one division and department be set up. These required segments should be set up as division 1 and department 1. Multiple divisions and departments may also be set up. Multiple divisions will allow the user to produce income statements and balance sheets for separate segments of the company. Multiple departments will allow the user to produce income statements for separate segments (profit centers) of the company but will not allow the user to produce separate balance sheets for each profit center.
Set Up Divisions and Departments in Appropriate Tables Files - Once the user determines the number of divisions and departments that will be used by the company, the user should set up the divisions and departments in the appropriate tables files. The Division and Department Tables are located on the Tables Menu which is located on the System Maintenance Menu. Please see the Table Files section of the documentation for more information about entering the divisions and departments in these table files.
Determine G/L Account Numbering Format to be used - The system supports a 24 digit account number. The division number, department number, account number and sub account number may each be up to six digits long. Shorter account numbers may also be used. Sub account numbers are not required. If the operator does not assign a sub account number to an account, the system will assign the account a default sub account number of 0 (zero). The system will support a variety of account numbering schemes but accounts should be grouped in a logical manner by main account number whenever possible. For example. In many numbering schemes, the first digit of the account number is used to indicate the account type or the classification of the account on the income statement or balance sheet (100 - Current Assets, 200 - Fixed Assets, 300 - Liabilities, 400 - Equity, 500 - Sales, etc.).
Create Account Descriptions - This procedure is used to create the general ledger account numbers and descriptions that will be used by all divisions and departments in the company. The Account Description file stores the account number, account description, account type, sort sequence, account status and autopost number (if applicable) for each account in the G/L. Each account created in the Maintain Account Descriptions program may exist in multiple divisions and departments. None of the account descriptions that are created with this procedure may be posted to until account period records have been created for the account in the period, division and department to which entries to the account will be posted.
Maintain Account Descriptions
Chart of Accounts Worksheet
Enter the account number, account description, account type, and sort sequence for each general ledger account into the system using the Maintain Account Descriptions program.
Print a Chart of Accounts Worksheet. The worksheet will list all of the accounts that were entered into the system with the Maintain Account Descriptions program. The operator can use the worksheet to proof the chart of accounts prior to creating account period records for the accounts.
Use the Maintain Account Descriptions program to make any required corrections to the account descriptions that have been entered into the system. (If any corrections need to be made to the chart of accounts, the corrections should be done before the operator creates account period records for the accounts.)