Add Additional Divisions

This write‑up assumes this is NOT the first time a division is being added. If this is the first time a division is being added, please see the document titled “Add a New Division”.

For the purpose of this document division 05 will be added as the example.

ADD VENDORS AND CUSTOMERS

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1) Vendors and customers will need to be added for transferring merchandise between locations/divisions. First go to:

Accounts Receivable (Module 2)
- Customer Master (Task 17)
  - Enter New Customer Record (Sub-task 1)
    - Add customer number 00005. The new customer name and number should correspond to the division name and number.
    - At line 13, Price Type, enter A-for average cost-in each of the nine slots. This is the price that will be charged on merchandise being transferred.

2) After the customer has been added, the vendor also must be added. Now go to:

Accounts Payable (Module 3)
- Vendor Master (Task 17)
  - Add New Vendor Record (Sub-task 1)
    - Add vendor number 00005. The new vendor name and number should correspond to the division name and number.

GENERAL LEDGER

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General Ledger account numbers for the new division and General Ledger account numbers for intercompany transfers will need to be created.

NOTE: If you never intend to transfer merchandise from one division to another through Order Entry, then it is not necessary to add the special transfer G/L account numbers.

1) Replicate Income Statement G/L accounts for the new division. Go to:

General Ledger (Module 4)
- System Management Functions (Task 32)
  - Create New Division G/L Accounts (Sub-task 9)
    - Follow the prompts on the screen. Use: Starting account number 500, Ending account number 999. This will copy the sale, cost of sales and miscellaneous income accounts to the new division.

NOTE: We do not recommend creating separate Balance Sheet G/L accounts for the new division. Past experience has shown a divisional balance sheet is very difficult to maintain and work with. Separate Fixed Asset Accounts can manually be added, with the middle two digits of the G/L account number designated as the new division.

2) Add Merchandise Transfer G/L Accounts.

Specific Sales and Cost of sales accounts will need to be added for Intercompany transfers.

Explanation: Through the Order Entry module, when merchandise is sold to a customer with a number less than 100 it assumes it is a transfer and will distribute the sales and costs using the G/L numbers described below. If the required G/L numbers do not exist they will print with an "Unknown Account" description on the daily invoiced orders posting register and corrections will need to be made at that time.

If you are not familiar with adding Account Numbers, please review the document: Add a New G/L Account

In the example below, it is assumed that the sales accounts and cost of sales accounts are 531- through 539- and 631- through 639- (if your account numbers are different, please substitute the appropriate numbers).

Add Accounts:

Cost of

Sales Sales

531‑05‑01 631‑05‑01

531‑01‑05 631‑01‑05

532‑05‑01 632‑05‑01

532‑01‑05 632‑01‑05

and so on.

As a suggestion, call the accounts I/C SALES and I/C COST OF SALES. The I/C stands for inter‑company transfers. Leave the Statement & Schedule codes blank until the next step is completed.

The middle two digits are the "transfer to" division and the last two digits are the "transfer from" division.

Step #1: Assign Statement and Schedule Codes.

STATEMENT codes control the order of printing on the Income Statement and Balance Sheet.
SCHEDULE codes control the order of printing on the supporting schedules.

Transfer G/L accounts should be assigned account statement and schedule codes that will cause them to be included in the "COST OF SALES" total on the income statement and print the detail under the "COST OF SALES ‑ OTHER" section of the supporting schedule. The "sales" and "cost of sales" transfer amounts should always net out to zero, so there will no effect on the totals of the financial statements as long as the new accounts are grouped together within the same total or subtotals. We recommend putting them in the "COST OF SALES" section instead of the "SALES" section, because transfers normally are not considered to be a sale.

First: Print existing G/L accounts sorted by statement code. Go to:

General Ledger (Module 4)
- G/L Accounts by Statement Code (Task 29) Answer the system prompts as follows:
  - Account # range: = 60000 ‑ 70000
  - Division #: = 01
  - Print group headers and totals? = Y
  - Statement code: = ALL
  - Find the account "COST OF SALES ‑ OTHER" or "COST OF SALES ‑ MISC" with a statement code ending in IP.
  - Write down the Statement Code and Schedule Code because they will be needed in STEP #2.
    - As an example: the STATEMENT code was P120IP and the SCHEDULE code was 1955GH

Second: Print G/L accounts sorted by schedule code. Go to:

General Ledger (Module 4)
- G/L Accounts by Schedule Code (Task 28) Answer the system prompts as follows:
  - Division #: = 01
  - Print group headers and totals? = Y
  - Schedule code: = 1955GH ‑ 130099 (as an example…first selection is one found above)
  - Account # range: = ALL
  - The first line that prints should be the same COST OF SALES ‑ OTHER account with Statement Code of, per our example, P120IP. Refer to the next column, it is the "Schedule Code".
  - Look down the report until the next schedule code that ends with an SS or ST is found. This will probably be "TOTAL COS ‑ OTHER" or something similar. All of the new transfer G/L account will be added between the GH and SS (or ST) schedule codes.

Third: Make a list of all G/L transfer accounts to be added with the necessary statement and schedule codes.

This example only shows 4 sales and 4 cost of sales transfer accounts. Your business may require more.

Stmt. Sched.

Description Account# Code Code

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Existing: COST OF SALES ‑ OTHER 650‑00‑99 P120IP 1955GH

Add: I/C SALES 546‑05‑01 P120VS 1962VP

Add: I/C SALES 546‑01‑05 P120VS 1962VP

Add: I/C SALES 547‑05‑01 P120VS 1962VP

Add: I/C SALES 547‑01‑05 P120VS 1962VP

Add: I/C COST OF SALES 646‑05‑01 P120VS 1963VP

Add: I/C COST OF SALES 646‑01‑05 P120VS 1963VP

Add: I/C COST OF SALES 647‑05‑01 P120VS 1963VP

Add: I/C COST OF SALES 647‑01‑05 P120VS 1963VP

Existing: TOTAL COS ‑ OTHER 650‑01‑99 P 1980SS

(IF the setting up of the transfer accounts causes a problem, We can provide the service of adding the accounts and assigning the Schedule & Statement codes. However, this is a billable service. Should this route be chosen, send us an e-mail or fax to 248-583-2553. So that the request can be done in a timely manner, please send it in well before the new division will be implemented to allow the Support personnel to schedule the appropriate time to complete the task.)

Step # 2. Add merchandise transfer G/L accounts.

Go to:

General Ledger (Module 4)
- Account Master (Task 17)
  - Enter New G/L Act # Record (Sub-task 1)
    - Add the first transfer account in the list. Add as many as necessary, and answer the system prompts as follows using the G/L numbers, name, statement and supporting schedule codes already assigned from Step #1:
      - 01. Account # : 546‑05‑01
      - 02. Acct descr : I/C SALES
      - 03. Fin St. code: P120VS
      - 04. Support Schd: 1962VP
      - 05. Paren Ctl : C
      - 06. Contra‑act :
      - 07. Wrk Cap Code:
      - 08. Indent # : 1

INVENTORY

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Two options are available for setting‑up inventory items at the new location. The first is the same basic inventory items and services from the original location which will be available at the new location. The second is the new location will be a separate line of business with its own line of merchandise.

Option 1: Same inventory at new division.

Before running this procedure, expand the size of the Warehouse Master File. The size should be doubled. Go to:

Inventory Control (Module 5)
- Warehouse Master (Task 17)
  - Adjust size of Warehouse file (Sub-task 7)

After the size of the Warehouse file has been adjusted, copy from an existing division the new warehouse records for the new division(s). Go to:

Inventory (Module 5)
- Special I/C Processing Menu (Task 25)
  - Copy Warehouse Data to New Warehouse #'s (code: BLDWHS). Answer the system prompts as follows:
    - Starting and Ending item number: Enter key for ALL
    - Enter warehouse number to COPY FROM: 01
    - The right side of the screen will display a blank list of 15 new division numbers that can be created.
      - Enter the new division number at the 01. line and press Enter.
      - The cursor moves to the 02. line.
        
        If more than one new division is being added, enter the next new division number.
        
        If this is last new division being added, then press ESC at the 02. line.

Example to add one new division using the example of Division 05:

01. 5

02. (ESC)

03.

Example to add three new divisions:

New Warehouse Records

Warehouse#

01. 5

02. 6

03. 7

04. (ESC)

Option 2. Different inventory at new division.

Item numbers for the merchandise at the new division must be created. Go to:

Inventory (Module 5)
- Add New Items (Task 1)
  - Enter (ADD) New Items (Sub-task 1)

See the document titled: Task 01 - Add New Items for complete instructions, if needed.

TABLES / PARAMETER FILES AND OTHER MISC. SET‑UP

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General Ledger:

Enter the new division number, with address and phone number. i.e. Division 05. Go to:

General Ledger (Module 4)
- Division Master (Task 21)
  - Enter New Division Record (Sub-task 1)

Purchase Order:

Add a new location/warehouse record for the new division. i.e. Division 05. Go to:

Purchase Order (Module 7)
- Location/Warehouse Addresses (Task 20)
  - Enter New Loc/Whs Record (Sub-task 1)

Identify which terminals do purchase orders for the new division. Go to:

Purchase Order (Module 7)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Terminal/Warehouse Cross Reference Table (Option 5)

Set table as desired. When doing a purchase order, this indicates by terminal, which warehouse is doing the ordering.

Terminal Division

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"TERM01" , "01"

"TERM02" , "05"

"TERM03" , "$$"

NOTE: Using $$ as division number will cause the system to prompt the operator to enter the division number.

Inventory Control:

Specify the highest division (warehouse) in use. Go to:

Inventory Control (Module 5)
- System Management Functions (Task 3)
  - Modify Parameter Files (Sub-task 22)
    - I/C ‑ General (Option 1) Look for the following parameter.

DFLT'WHS'NUM=5 Set to highest warehouse/division in use.

Order Processing:

1. Identifies in the Order Entry program which terminals should default to the new division (warehouse). Go to:

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Default Terminal Warehouse/Dept's (Option 7)

;Terminal whs dpt

;======== === ==

;TERMxx" , "xx.xx"

"TERM01" , "01.01"

"TERM02" , "$$.$$"

"TERM03" , "05.01"

This sets the default division/warehouse number and department number that default on the first screen in Order Entry. The terminal number controls this. Set as required.

NOTE: Using $$ as division and/or department number will cause order entry to prompt the operator to enter the division number.

2. Identifies in Order Entry which departments are available in the new division.

Order Processing (Module 6)
- System Management Functions (Task 32)
  - Modify Application Tables (Sub-task 17)
    - Available Warehouse/Dept Combinations (Option 15)

whs dpt Department name

== == ============

"01.01" , "Counter sale"

"01.02" , "Accessories "

"01.03" , "Service "

This sets which warehouse/division and department combinations can be used in Order Processing.

TAX ZONES

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For a comprehensive overview of tax zones see the separate document entitled: "Task 23 - Tax Zones".

Step 1. Add new tax zone numbers for any new tax rates that order entry might be expected to apply. If a tax zone doesn’t exist for this new division’s state, city, county, etc… create a new Tax Zone. They can be manually entered via Sub-task #1 or copied from an existing division using Sub-task #8. Go to:

Accounts Receivable (Module 2)
- Tax Zones (Task 23)
  - Enter New Tax Zone Record (Sub-task 1).
  - Copy Existing Tax Zones, Create New Ones (Subtask 8)
    - Please enter – starting zone # to copy FROM: ENTER key for ALL
    - –ending zone # to copy FROM: (cursor will go to Any Change?, press the ENTER key)
    - Please enter – division # to copy FROM: type in the main or home division #
    - –ending division # to copy FROM: (cursor will go to Any Change?, press the ENTER key)
    - Zone # to copy TO: type in the new division #

Verify the configuration of the tax zones to see if this exact procedure works best for your system.

If the other divisions do not use the new tax zone number, then they should still be added with a tax rate of zero (this will ensure all division are accounted for when printing Tax Zone reports for tax reporting).

Step 2. For pickup and will call orders, provide appropriate tax zone numbers to "Pickup tax A, B and C" for the new division. Go to:

General Ledger (Module 4)
- Division Master (Task 21)
  - A tax zone number must be assigned to Pickup tax A, B and C.
  - Set unused tax zones to 99999 Normal customer tax. This tells Order Entry to use its existing tax zone number (which will probably be 00000 No tax) for this tax zone.

Example: if you want all pickup orders sold in division 5 to add a zone tax on top of the state sales tax (which should also be set up as a Tax Zone) then set the division 5 record to these values:

10. Pickup tax A:00001 State tax
11. Pickup tax B:00555 County tax
12. Pickup tax C:99999 Normal customer tax

Step 3. For delivery and ship‑to orders, be sure to set appropriate tax zone numbers in the customers added or changed in the following tasks:

Accounts Receivable (Module 2)
- Customer Master (Task 17)
Order Processing (Module 6)
- Alternate Ship‑to File (Task 19)