Premium 2011 Processing Transactions in the DIVISION (Project) Module

Allocating Transactions to Various Divisions - -Cash Purchases 3 - -Purchase on Credit 4 - Sales (Cash or Credit) 5 - -Payroll 6 - -Payroll Accrual 7 - -Sales Returns 8 - -Cost of Sales Adjustments 9 Division-Related Reports -Division Income 11 -Division Allocation 12 -Unallocated Division Amounts 13 Contents Slideshow 11A

Allocating Transactions to Divisions: Cash Purchases To allocate a purchase to various divisions means to divide the purchase price among various divisions. This example is a cash purchase entered in the Payments Journal, for $ to be distributed among 3 divisions. Click the ALLO(cate) column now. See the Tubs/Chemic Allocation – Payments Journal window at right. Notice the Available Amount. Remaining % changes as you enter each allocated item. Click. As you enter the first percentage (according to your accounting system), Simply calculates Amount. Click. You would then enter all the other allocations. When Total % is 100, your allocation is complete, and Remaining on top would be 0.00%. Click. Study the resulting journal entry. Click to continue. Note check mark

Allocating Transactions to Divisions: Purchase on Credit You would follow the same procedure to record a purchase on credit, except you would record it in a Purchase Journal – Purchase Invoice. You would follow the same allocation procedure. Click the ALLO icon now (see arrow) and study the allocation window. You can allocate 100% of the amount to one division by clicking the Apply the allocation to entire transaction box (see arrow). Click. An Information window appears. Read the information. You would click OK to clear the information box. Assume that you would proceed with the full allocation. Click. Study the Purchase Journal Entry. Click to continue.

Allocating Transactions to Various Divisions: Sales (Cash or Credit) Follow a similar procedure to record sales. You would record them in a Sales Journal – Sales Invoice. Study the invoice with only the first item entered. This is to record cash sales to various cash customers. You can allocate each item individually. Click the Allocation (Tubs/Chemic) column now. Apply 100% to Chemicals-individual. Click OK. You would enter the next item sold, click the Allo column again, and likewise, you would apply 100% to a different division, Chemicals-bulk. Click OK and study the journal entry. You would follow the same procedure for sales on credit. Of course, ACCOUNTS RECEIVABLE would be debited instead of BANK ACCOUNT. Click to continue.

Allocating Transactions to Divisions: Payroll To allocate PAYROLL to various divisions, you would process the allocation in the EMPLOYEES & PAYROLL module. Allocation is based on hours spent by particular employees on specific divisions. Study the Payroll Run Journal at the right. You will learn how to allocate the payroll for Hillary Buchanan for $1, for working 80 hours. Click the ALLO column for BUCHANAN, HILLARY. You would do the allocation very much the same way as in the previous slides. Study the complete PAYROLL allocation for Hillary Buchanan. Click again and study the resulting Payroll Journal Entry. Notice that each WAGES EXPENSE item is allocated according to the percentage specified in the allocation and the number of hours Hillary worked on specific products. Click to continue.

Allocating Transactions to Divisions: Payroll Accrual Although you may have allocated payroll by hours, payroll accruals must be allocated by percent, because Simply does not allow payroll accruals to be allocated by hours. For example, you received the payroll accrual report at the right. Study it. Click. You would enter this type of transaction in the General Journal. Click the Allo column. Click the Allo column in the General Journal now. You would enter the divisions with corresponding total percent, ensuring that the Total Amount is correct and that the total allocated is 100%. Click. Study the General Journal Entry for the payroll accrual allocation after you make the credit entry. Click to continue.

Allocating Transactions to Divisions: Sales Returns This procedure allocates a return of goods sold based on the original sales invoice allocation. As usual, you would enter the sales return as a negative invoice (see right), and then allocate the return accordingly. Click the Allo column now. Because you entered a negative value under Quantity on the invoice, the Allocate value is also negative. You would accept 100%. If more than one item is returned, you would follow the same procedure by entering the negative quantity on the next line, and allocating each amount 100%, specifying the division to which the return should be allocated. Click and study the resulting journal entry. Click to continue.

Allocating Transactions to Divisions: Cost of Sales Adjustments This procedure applies if you need to allocate Cost of Sales on products that had been previously set up as divisions. In this example (see right), the products which were set up as divisions (HT 1.0, HT 4.0 and HT 4.4) required installation of bases, fittings and wood skirts. At period-end, the products (divisions) were counted and the costs of bases, fittings and wood skirts for products (divisions) sold during the period were estimated in order to adjust cost of sales and Inventory (bases, fittings and wood skirts). Study the General Journal to enter the adjustments. Click 4 times, studying each screen. Study each screen which illustrates how the allocations of each the cost of sales items. Click to continue.

Allocating Transactions to Divisions: Cost of Sales Adjustments (continued) After the debit entries with allocations, you would then enter the credit entries. Click. Study the resulting General Journal Entry. Click to continue.

Division-Related Reports Divisions income Study the reports available in the Tubs/Chemic Division Reports Centre. Click. The Tubs/Chemic Income Detail report shows the revenues and expenses you allocated to divisions for a given time period. You can specify up to two years of data in these report. It shows individual transactions allocated to the accounts selected for the report. Click. The Income Summary report shows total revenue and total expense allocated to the accounts selected for the report. Click to continue.

Division-Related Reports Division Allocation The Division Allocation report shows allocations by division for the period you specify. It also indicates current and cumulative amounts and can include balance- forward amounts for transactions entered before the start date of the report. Division Allocation reports can include up to two years of details. Note: Once you clear transactions, division details are no longer available. Click. Study a sample Allocation Summary report. Click. Study a Detail report. Click to continue.

Division-Related Reports Unallocated Division Amounts Report The Unallocated Division Amounts report provides you with a list of transactions amounts that were unallocated or only partially allocated to a division. The results are organized by transaction type and by date. You can drill down into original transaction windows for Purchases, Payments, Sales, and Payroll transactions. Study a sample Unallocated Tubs/Chemic Amounts report. Click to continue.

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