A Finer View into Company Accounting
During challenging times it is particularly important to find out precisely where money is being made and where it is being lost in a business. MV’s new initiative is designed to do exactly that.
Have you ever wondered if a particular department within a location is actually profitable? How about a specific piece of equipment? If you have FM sites, are you able to pin-point which ones of these need attention and which ones to expand?
For those well-versed in Profits Plus, you know that the system supports separate divisions per company. Each division is defined as a separate physical location with its own warehouse record for inventory items.
Additionally, each division can track its own revenues, expenses, and income. Financial reports such as income statements and balance sheets can be generated for a division, or on a consolidated basis for the whole company.
MV has expanded this concept one step further. For each division, Profits Plus will now allow you to create one or more sub-divisions. Sub-divisions are of-course optional, so you can have a mix of divisions that have sub-divisions and others that may not have any.
What Kind of Information will Sub-Divisions Track?
In order entry, as a sales order is entered, users will have the ability to enter a relevant sub-division to which the sale will be allocated if the selling division is sub-divided.
Similarly, during purchasing, users can choose a sub-division for which the purchase is being made. While the inventory purchase is tracked at the divisional level, the purchase history will further record the purchase against the selected sub-divison.
General Ledger Journal Entries
Users will able to record general ledger journal transactions against specific division/sub-division selections for greater reporting flexibility.
Companies will be able to generate financial reports for specific sub-divisions within a division.
Where Would You Use Sub-Divisions?
Sub-divisions can be used for a wide-ranging set of operational and financial functions. We contemplate the following applications as a start:
FM Site Management
By creating sub-divisions for discreet FM locations within a division, individual sites can be tracked for sales and profitability for greater control.
Companies can also set up different departments as separate sub-divisions. For example, Large Format Color, Equipment Sales, and Supplies may all be business areas within a location. By creating sub-divisions for distinct business areas, a company can report operating figures at a departmental level for greater insight into the company’s performance.
Equipment Level Financial Analysis
Further expanding upon the departmental tracking approach, individual pieces of equipment can be tracked as separate sub-divisions to see financial performance at the equipment level.
The first phase of this project is complete and we have recently commenced the second phase of the project.
Briefly, Phase 1 involved the creation of the data elements and the work in the General Ledger module comprising the sub-division master and backend data integration.
Phase 2 consists of integrating this functionality with the Order Entry & Purchasing modules so that sales and purchasing transactions can be tracked against sub-divisions as described above. It will also expand the G/L financial statement reporting & year-end processing functionality to take advantage of the new data.
We expect the project as currently defined to be completed and initially rolled out near the end of the year.
Wishing you a wonderful October and Happy Halloween!
Barbara, Cheryl, Jim, Joe, Neil, Vivek, and Pavan
phone: (248) 583-4110