How do the departments work in MoneyWorks Gold?

MoneyWorks Gold has a departmentalized GL. meaning that you can create departments, assign them to a department group(s). The Department Group is assigned to the various, income and expense accounts that you want to track by department. You can then produce individualized income statements/P&Ls for each department, groups of departments or combined departments in a classified/combined income statement.

e.g. property management: a business owns a building with multiple rental units and wants to track the received and costs incurred for each rental unit and the building as a whole. So in our example each rental unit will be a department.

Departments

Select Chart of Accounts in the Navigator [REd Arrow] Click rhe plus sign next to the Departments icon [Greem Arrow].

The Departments window, opens click New Icon [Red Arrow] and in the new Department window, assign a Code [Blue Arrow. The code is limited to 5 alphanumeric character.  Then assign a description [Green Arrow] presumably the unit no. or some other descriptive ID. Click Next to create another  Department (Rental Unit in this case) until you have entered all the units. Then Click OK.

Note about Departments: In this example we now have three departments/rental units, although you could enter as many as required. However in MoneyWorks Departments can be used to individually track the revenue and related costs to any measurable business unit. e.g. multiple branch offices,  tracking individual or grouped P&Ls or a fleet of vehicles where you are just tracking the leasing, maintenance , repairs, and fuel costs for each vehicle and this producing individualized cost centre reports by vehicle.

Department Groups

Click the + icon next to Department Groups in the Chart of Accounts Navigator above [Blue Arrow].

A Department Group will window open. Assign Code ( 5 chars) [Blue Arrow] ,  a Description, the building name in this case [Green Arrow] and click the Add button [Red Arrow].

The Add to Group window will open where all departments will be shown, highlight the ones that belong to this building [Purple Arrow]. Click Add [Orange Arrow]. We now a Department Group for the Building in this example,  made up of in this example three rental units or departments.

Note About Departments Groups: Department Groups are used to organize departments and the Group of departments is then assigned to the accounts you want departmentalize. So in the future if you added more departments, say more rental units to this building or new branch ot vehicle to the fleet, all you would have to do is create a new department and then add it to the Group which MoneyWorks then automatically assigns to all the different departmentalized accounts.

Classifications

Since in this example we not only require individual P&Ls per rental unit, but also a separate combined P&L for the Building, this is accomplished in MoneyWorks by creating a Classification and assigning the departments that make up that Classification. Click the + icon next to the Classifications icon [Orange Arrow] in the Chart of Accounts window at the top of this post.

The Classifications window will open, Click New Icon [Red], the new Classification window opens [Green], assign a unique 5 chars code [Blue Arrow], a description for the Building could be the same as the Department Group Name, Click OK. Note: you could use the same Code & Description as the Department Group, since it might be more recognizable, but for this example e will keep the IDs different.

Now open each Department in the Departments window by double clicking them and assign the 51234 Classification to each department from the drop down list as shown below.

So we now have 3 rental units/departments, 1 Department Group the Building and 1 Classification for a separate by Building.

Departmentalizing the Accounts

We now need to  assign the Department Group to the various income and expense accounts that we  want to track by rental unit for our building. Open the Accounts list in the Chart of Accounts window above you can’t miss it, as appropriately every is pointing at it or use the hot key Cmd key + 1 (Mac) or CNTRL key + 1 (Windows).

Create or open existing Income and expense accounts that you want to departmentalize by assigning the Department Group .
e.g. Double Click the Rental Property Gas & Water account. Click the Dept Code drop down list [Red Arrow] choose the Dept Group BLG_1, click Ok [Blue Arrow] and MoneyWorks  will ask you to verify if this is the Group of Departments you want [Green Arrow]. Click any department in the Group [Orange Arrow] and then click Choose [Black Arrow] and the account is  departmentalized to Department Group BLG_1.
For this example we have departmentalized one income account to track rental income and two expense accounts as shown below in Red.
Even though the chart of accounts only lists one income account and one of each expense account, MoneyWorks has created a sub account for each department/rental unit that will be used when entering transactions or assigning budgets. etc.
Click Budgets in the Chart of Accounts Navigator or go the Show menu at the top of computer screen and choose Budgets. The A Budget window will open (Note: you an set two budgets in Moneyworks) and the departments (or sub-accounts are listed) e.g. are account 5300 is actually three sub accounts 5300-UN_1, 5300-UN_2 and 5300-UN_3. Same with the two expense accounts that we departmentalized.

Entering Departmentalized Transactions

When entering income or expenses to a departmentalized account you choose the department that you are entering the details to.

e.g a receipt for January rent from Unit 1 tenant. Enter the account by typing Rent and choose the Rental Income account 5300 [Green Arrow] and the Account Choices window will open where you must specify which department you are recording the income to [Blue Arrow], double click Unit 1 or highlight and select choose and it will be recorded in the detail line.

Likewise when entering Payments and Invoices, using a departmentalized account you will be asked to specify  the Department.

Departmentalized Reports

For our example we have entered rent received and expenses for the three rental units and want to produce individualized reports. The MoneyWorks Balance Sheet and Income Statements /P&ls provide a multitude options when using departmentalization.

In this example we will various P&L reports for the month of January when our transactions took place. Click the “Profit for this Month” report at the bottom of the Chart of Accounts Navigator or use the Reports menu at the top of the screen > Profit  & Loss for Month”. The report’s Setting Window will open and set the settings as below. Click Preview and you will get the standard P&L report on the right, just listing the accounts (not departmentalized sub-accounts).

If you chose Show Department in the settings [Red Arrow]…

The department sub-accounts get listed. However remember since this is the basic P&L all other activity to non related business units/departments would al;so be shown. Trust me on that one, as I am just too lazy to enter other non-related transactions 🙂

To report individualized Departmental reports which is what the initial intent was, click the More Options in the Settings [Green Arrow below], which changes to lists the various options to print individual reports by department. Choose “Departments” [Blue Arrow] in the list as shown below.

By highlighting the departments you want to report on, you can print a report for one department, a selection of departments or all departments. There will automatically be a page break after each departmental P&l chosen.

In order to get a single report combining all the monthly activity (transactions) for the building, Choose the Classification option, choosing the Classification that was created above and the resulting report will be a summary of the three departments/units in this case.

Note: Existing reports in MoneyWorks Gold are easily modified so the Rental P&L in this example could relabeled with headings such as Rental Income and Rental Operating Costs etc, and unnecessary rows or headings could removed.

Bottom line MoneyWorks Gold allows you to easily setup, manage or add new departments and create unique, individual or combined reports on your departments.

For more information about MoneyWorks Support in Canada, in the USA, or in the UK contact www.moneyworkssupport.wordpress.com

2 thoughts on “How do the departments work in MoneyWorks Gold?

  1. hi

    thanks for the article, i found it very informative and helpful, however i have a question if you could assist…

    brief:
    – i have 3 department groups WA, NSW, VIC
    – i have store1, store2, store3 as departments and have flagged these as WA
    – i have store4 and store5 in NSW
    – i have store6 in VIC

    taking the Sales account code 1001 as an example, when i select the department group WA it will supposedly create sub-ledgers for store1, store2, store3 which is fine BUT how will it create sub-ledgers for store4,store5 & store6 as i can only select 1 department group at a time?

    regards
    Jerry

    • Hi Jerry,

      You may be confusing Departments & Department Groups. Departments can belong to multiple Groups, but can only belong to one classification and only one Group can be assigned to an account.

      You have 6 stores and therefore 6 departments. Create a Group for all 6 stores, called “ALL” or “LOC” that has all 6 departments. Assign it to the accounts you want to departmentalize. The sub-accounts will be created e,g, 1001-ST1 through to 1001-ST6.

      You can then run a P&L for each location individually, or since Departments can belong to multiple department groups, you can call up a Group and only the departments in the Group will print.

      You could also create a consolidated P&L for each Group if desired, by creating three Classifications that classify the departments the same as the Groups.Then run the Classification report for the WA and stores 1, 2, & 3 will be added together in one P&L.

      I hope that helps.

      Al

      MoneyWorksSupport.ca
      A division of The Loman Group
      Email: al@loman.ca
      Web Site: http://www.moneyworkssupport.ca
      Free Support Blog: http://www.nasupport.wordpress.com
      Toll Free: 877-711-2991

      http://about.me/alhayward

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