The latest version (21.6.27) adds ability to create divisional balance sheet.
A few weeks ago I’ve disabled ability to be able to set tracking codes on transaction lines if you’ve selected balance sheet account.
There was no built-in report that was leveraging tracking codes on balance sheet accounts but there have been requests to be able to create balance sheet for tracking codes just like it has been already possible on profit & loss statement.
Now, the issue is that balance sheet must represent real accounts, not movements in those accounts. So the tracking code (or division) needs to be set on account-level rather than on transaction-level.
Let me demonstrate.
Let’s say you have two divisions:
- Awesome division
- Brilliant division
For now, you create these divisions as
Tracking Codes under
Settings tab (I will be renaming
Tracking Codes for
Divisions because this term is better suited).
Every balance sheet account (or sub-account) can now be assigned division. That is:
- Bank accounts
- Cash accounts
- Inventory items
- Fixed assets
- Intangible assets
- Special accounts
- Capital accounts
- Expense claim accounts
- and the custom balance sheet accounts defined in
Chart of Accounts.
For example, when you create a bank account, you can set division to which this account belongs to.
Now let’s create fixed asset which will belong to the same division.
Then let’s create payment transaction that will purchase this fixed asset.
As you can see, when entering transactions and interacting with balance sheet accounts, you do not select division on individual transactions. Balance sheet accounts are always “owned” by single division. In other words, balance of the account is owned by division. Not the movement. You are not tracking movements like on P&L.
When we create divisional balance sheet.
We will see
Balances correctly show under
Awesome division column.
You can do interdivisional transactions too. For example, fixed asset could belong to
Brilliant division which could have been purchased using money from
Let’s edit fixed asset and assign it
Brilliant division instead.
Then look at the balance sheet again.
Now you can see the fixed asset we have purchased is under
There is also new account called
Interdivisional loan which automatically tracks loan between divisions so divisional balance sheet always balances.
If you have an existing business, you can migrate to divisional accounting by simply editing every balance sheet account and selecting division. This is enough to produce divisional balance sheet.