Departments

Using departments

Departments are codes that you can add to profit and loss nominal accounts, to help keep track of your income and expenses.

Each nominal account has the same code but with different departments.

Departments are additional codes that you can add to profit and loss nominal accounts, to help keep track of your income and expenses in a particular area.

For example:

  • A primary school might set up a department for each year, from Nursery to Year 6.
  • A secondary school might set up a department for each teaching subject area, such as English, Mathematics and Art.

Each nominal account has the same code but with different departments.

Applying departments to transactions

Once set up, you need to make sure that transactions are posted to nominal account with the correct cost centre and department combination. When you post transactions directly to your nominal accounts, such as a cash sale, you can select the nominal account with the correct CC or CC/ Dept combination.

For sales and purchase transactions for customer and supplier accounts, you can specify the nominal account you want to use for particular customer or supplier on their account. When you enter transactions, this nominal account is automatically selected. To make sure sales and purchases are assigned to the correct nominal account, you can select a nominal account with a CC or CC / Dept combination. For example, a customer of your Manchester office, would have their default nominal account as 4000 MAN.

Once you have set a nominal account with a CC or CC / Dept, as the default nominal account on a customer or supplier account, Sage 200cloud uses this when posting transactions automatically. When Sage 200cloud posts a transaction to a profit and loss nominal account, it posts to the account code associated with the default nominal account and the CC/ Dept associated with the customer or supplier account. A settlement discount for a customer with a default nominal account of 4000 MAN, would post to a Discounts Allowed nominal account, 4008 MAN.

Once set up, you need to make sure that transactions are posted to nominal account with the correct department. When you post transactions directly to your nominal accounts, you can select the nominal account with the correct department.

Default nominal accounts on customer and supplier accounts

Specifying a default nominal account on a particular supplier or customer, means that this nominal account is always entered by default on all transactions.

This is useful when the majority transactions for a customer or supplier account are posted to the same nominal account. We recommend that if you do set a default nominal account here, this account doesn't have cost centre or department associated with it. This is to make sure that transactions aren't posted to the wrong fund or department.

If you don't set a default nominal account, you just have to make sure you choose the correct nominal account plus cost centre and department when entering transactions.

Cost centres and departments with stock

When choosing the nominal account to use by default on invoice and order lines, Sage 200cloud looks at the default nominal account assigned to the stock item and the cost centre and/ or department (if used) set on the customer or supplier account. For example, if you've set a default nominal account of 4000 MAN on a customer account and a default nominal account of 4001 of a stock item, your 4001 MAN is entered on the invoice or order line, by default.

Note: When using cost centres and departments with your customer and supplier accounts, you must make sure that you create nominal accounts with all the required cost centre and department combinations. If a nominal account doesn't exist, then the line value is posted to the suspense account.

Importing departments

If you need to add a number of departments, it might be quicker for you to import them into Sage 200cloud.

What do you want to do?