Full versus partially divisionalized accounting

Full divisionalized accounting is enforced if the Divisional option is selected in SA Company Setup.

The difference between non- or partially divisionalized accounting and full divisionalized accounting is that with full divisionalized accounting, your General Ledger is updated by transactions posted for a particular location. This location could be, for example, a branch office, a specific customer ship to, or a warehouse. Where a transaction does not affect inventory in a warehouse, General Ledger is updated based on the division that is assigned to the customer or vendor involved, or the number can be entered manually. The result is automatic updating of General Ledger accounts in a manner that results in full balance-sheet-by-division capability.

Partial divisionalized accounting is still a functional option. With partial divisionalized accounting, the AR Control, AP Control, AR and AP Cash, and Cash Discount accounts cannot be fully divisionalized. This is because the balance sheet is a single set of accounts. You can run reports for each account, but you cannot run balance sheets by division. You must run them for the company as a whole. However, you can run income statements and report profit and loss by division.