Allow Departments

If you want to allow departments as part of your account numbers, check this field.

 

•When departments are allowed accounts will consist of two fields, the five-digit account number and the optional three-digit department.

 

•When departments are not allowed, accounts will consist of only the five-digit account number. Once this field is checked and saved, it cannot be de-selected. See GL Account Maintenance for more information about accounts.

 

Departmentalize Income/Earnings

If you want to calculate net income and retained earnings separately for each department at period and year close check this field. This option is only available when departments are allowed.

 

•When this option is not checked, net income is accumulated in a single Net Income account at period close, and net income from that single Net Income account is transferred to a single Retained Earnings account at year close.

 

•When this option is checked, net income is calculated by department, so at period close, General Ledger requires a separate Net Income account for each department. At year close, a separate Retained Earnings account is required for each department

 

 

When setting up General Ledger for the first time, you should set-up and save everything except the Default Accounts, then create a chart of accounts, then come back into General Ledger Company Maintenance and initialize the Default Accounts.