Divisionalized accounting

Divisionalized accounting is used in the system to identify journal transactions specific to locations, and to update the General Ledger accordingly. Typically, each location is a division. The General Ledger account balances for each division are then compiled to produce fully divisionalized financial statements, including Income Statements, Trial Balances, and Balance Sheets by division or branch.

Divisionalized accounting enforces the use of a division number in all journal postings. Every journal set must balance at the division level. Therefore, every account in your General Ledger chart of accounts must have a division number in its numbering sequence. In addition, interdivisional accounts must be set up to enable balancing at the division level.

The division level has visibility, search capabilities, reporting, and analysis in several functions, including: Customer Setup, Customer Ship To, Customer Inquiry, Customer Ship To Master List Report, Sales Order Entry, Sales Order Inquiry, SM Product Transfer/Resale-EDI867 Report, and SM Rebate Report. In General Ledger, you can view division and division group information in these functions: GL Account Inquiry-Account Details, GL Account Setup-Accounts results grid, and GL Journal Inquiry-General Ledger results grid.

In Sales Order Entry, for example, the Division number and description associated with the order is displayed in the Header Information. If the order is being entered for a Customer ShipTo, the division assigned to that shipto is displayed. During Sales Order Entry creation, handling, and tendering, whether Receive on Account or other type of payment, and during Invoicing, if a Customer ShipTo has been specified on the order, the Division and Bank for the ShipTo is used for processing the order.

Setups

To use divisionalized accounting:
  • In SA Company Setup-Required-Settings, select the Divisional option. You are also required to specify an InterDivisional account code in the GL Accounts section.
  • In SA Table Code Value Setup-Division, define the different divisions.
  • In SA Administrator Options-Documents-Sales Orders-Entry Settings, set the Division # Default From field to either Customer or Warehouse. Use this option to indicate whether the division number should default from the warehouse record or customer record during Sales Order Entry. The default is overridden if the Sales Warehouse feature is activated in the Sales Warehouse section:
    • the Use Sales Warehouse option is selected, and
    • the Override Division # Default on the Order option is selected.
  • In Customer Setup, Customer Ship To Setup, or Product Warehouse Description Setup, select a division as appropriate. This selection is based on your division settings in SA Table Code Value Setup-Division and SA Administrator Options.
  • In SA Operator Setup-Other Options, select the options that control division access for your company. This includes selecting allowed divisions for each operator and specifying the module data each operator is restricted to within the allowed divisions, if appropriate. Optionally, specify a division group if you have set up Division Groups in SA Table Code Value Setup-Division Group.

Full versus non- or partially

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

The basic 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 shipto, 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.

Customer Setup versus Customer Ship To Setup

The Division value in Customer Ship To Setup defaults from the Division value in Customer Setup-General-Settings. If you use full divisionalized accounting, this field is required for each and every Customer ShipTo.

If you create a new Customer ShipTo record for an existing customer record, the new record will, by default, contain the Division and Bank values from the Customer Setup record. Optionally, you can modify these Division and Bank values in the Customer Ship To Setup record if those values are different than the defaulted values. These modified values, then, take precedence and are used for sales orders. The exception is if you have activated the Sales Warehouse feature. The sales warehouse division overrides the customer or warehouse division that is selected in the Division # Default From field in SA Administrator Options-Documents-Sales Orders-Entry Settings.

SM Rebate Report

Use SM Rebate Report to generate an in-depth report of outstanding rebate amounts, including customer rebates, vendor on sale rebates, and vendor on purchase rebates. You can also use this report to send the EDI 844 Product Transfer/Account Adjustment document to vendors. You can run the report for a Division range. You can sort claims for each contract by division in the option, Sort Contract by C)ust#, S)hipTo, D)iv, N)one. The division value is included in the EDI output or the sync.SXVendorRebateClaim XML output and ION BOD.

SM Product Transfer/Resale-EDI867 Report

Use SM Product Transfer/Resale-EDI867 Report to produce an electronic document that provides various information to your vendors. You can run this report to show which division is associated with an order. The division value is included in the EDI output or the sync.SXInventoryMovement XML output and ION BOD.

Exclusions

The division level in not available for these features: AP Vendor, AR Lock Box, BP Bid Prep, Floor plan, Service Warranty, Value Add.