Configuration: Profit Centers

Use the Profit Centers screen to classify G/L accounts by department and location. This is accomplished by attaching the profit center to an account through a chart of account profile. The result is a series of G/L accounts which all stem from the same account master, each representing individual departments and locations. The software will also generate departmental profit and loss statements and balance sheets by location based on the profit center values entered in this screen. These are separate from any statements generated by groupings (also defined on this screen).

To open the Profit Centers screen, navigate to Configuration > General Ledger > G/L Accounts > Profit Centers.

That the balance sheets produced by default will be unbalanced, since they are location specific and do not reflect any amounts found in P&L accounts. You will need to define multiple profit centers.

The fields on the Profit Centers screen are:

Field	Description
Code	A three digit alphanumeric field which represents a department and a location (e.g. G/L account number 50000401 would be broken down as 50000, which comes from the account master and represents an expense account, 4 would represent the service department, and the 01 would represent location 01). The first digit of the profit center indicates the area of responsibility. The balance sheet items are denoted by 0 in the first digit. income statement items are recognized by a start digit of 1 for administration, 2 for Sales, etc. See the Profit Center table for a list of recommended start digits.
Description	Used to describe the profit center. It will be used on various G/L reports that have reference to that profit center.
Profit Center Grouping	Used to group profit centers on the financial reports to produce departmental reports.
KPI Department	Allows you to create a correlation between the profit center and a department used for calculating KPI (Key Performance Indicators).
Location Grouping	Used to group profit centers together to produce location reports.
KPI/Default Location	Allows you to create a correlation between the profit center and a branch location used for calculating KPI (Key Performance Indicators), or a default location that will determine which branch location the account totals for that profit center belong to.
Primary Location	The primary location is the only branch location that can use the current profit center in the Sales Account field on the Parts Profile tab. The system will do an edit check when the user is editing a part profile and will display an error message if an invalid account is entered.
G/L Postings Allowed Locations	Allows you to indicate a list of valid branch locations (up to 20 branch locations) that are authorized to make general ledger postings to any account that is associated with the current profit center. The Primary Location must be included as one of the branch locations listed.
Location List ID	The system will perform an edit check on the branch locations listed in the G/L Postings Allowed Locations field. This edit check ensures that all journal postings associated with the list of branch locations net out to zero. All other profit centers using branch locations listed on the G/L Postings Allowed Locations field should be using the same Location List ID.
Active for System	Controls whether the profit center is active for use within the system. Selected: Activates or reactivates the profit center within the system. Not Selected: Indicates that the profit center is deactivated within the system. This field appears only by accessing the Profit Centers screen by clicking on a Code.

We recommend the following first digits for your Profit Center:

0	Balance Sheet
1	Administration
2	Equipment Sales
3	Parts
4	Service
5	Rental
6-9	User defined departments

The following reports are produced though a Profit Center Grouping:

DE1110	Balance Sheet Analysis.
DE1160	Income Summary.
DE1120	Area Of Responsibility Income Summary.

For example, suppose the profit center groupings were defined:

001	B/S
002	B/S
003	B/S
101	ADM
102	ADM
103	ADM
201	EQ
202	EQ
203	EQ
301	PAR
302	PAR
303	PAR
401	SER
402	SER
403	SER

This grouping would produce a balance sheet for 001, 002 and 003 together, since asset and liability accounts would be the only accounts with a profit center of 001, 002, 003, etc. The grouping would also produce income statements (P&L) for 101, 102 and 103 together, 201, 202 and 203 together, etc.

The reports are produced though a Location Grouping:

DE1110	Balance Sheet Analysis.
DE1160	Income Summary.

For example, suppose the following location groupings were defined:

001	HOU (Houston)
002	SAN (San Antonio)
003	DAL (Dallas)
101	HOU (Houston)
102	SAN (San Antonio)
103	DAL (Dallas)
201	HOU (Houston)
202	SAN (San Antonio)
203	DAL (Dallas)
301	HOU (Houston)
302	SAN (San Antonio)
303	DAL (Dallas)
401	HOU (Houston)
402	SAN (San Antonio)
403	DAL (Dallas)

This location grouping would produce a balance sheet for each of HOU, SAN and DAL, since asset and liability accounts would be the only accounts with a profit center of 001, 002, 003, etc. The grouping would also produce income statements (P&L) for HOU, SAN and DAL. That is, one P and L would be produced for all profit centers ending in 01, another for all profit centers ending in 02, etc.

The buttons complete work on the Profit Centers screen are:

Button	Function
Save	Saves changes made on the Profit Centers screen.
Copy	Copies the selected profit center code. This button appears only by accessing the Profit Centers screen by clicking on a Code.
Save & New	Saves a newly added profit center code and refreshes the Profit Centers screen, allowing you to add another profit center code without closing the screen. This button appears only by accessing the Profit Centers screen by clicking the Need to create a new profit center? Click here to add link.
Save & Next	Allows you to save any edits/changes made to the selected profit center code and scroll through to the next profit center code in the list to apply any edits/changes. This button appears only by accessing the Profit Centers screen by clicking on a Code.
Close	Closes the Profit Centers screen without saving and returns to the Profit Centers screen.