Wow, quite a long thread to follow, but let me add my 5 cents. Divisions and Projects should never be combined, it serves two separate purposes. Divisions is typically how a business is structured and the function provides management with accounting reporting across the different sections of a business. It may be different branches or different types of services, but the divisional breakup has an internal focus to the business structure. Project accounting is more focussed on cost accounting and may run across multiple divisions in a business, but typically has an external focus on a customer of the business, revenue and cost associated to a specific deliverable (Project) to a customer.
We internally charge projects for services beyond taking the overhead on each actual project expense. For example rental and energy charges to each project by the Facilities Management Unit. As in an earlier post we use cost centers and see programs, projects, units, etc as part of how we are organized (grouping). So yes division, unit, program and project are different and distinguished in our accounting by cost centers. So whatever label they are groupings while sharing similar income and expense / cost accounts that at business/organization level are rolled up but where we can monitor at each of these groupings.
Sounds good, you are using the cost centres (Division in the latest version of the software) to roll up to to organisation level. If project costing is implemented independently from divisions, a business will also be able to track costs across divisions. This way you have multiple dimensions to track profitability and not only a single division structure.
I do no equate Division with Cost Center. What I was suggesting is that you could have many grouping labels such as Division, Project, Unit, Program (which contains projects), etc. But they are assigned a Cost Center (like a main account number) under which they discreetly budget, and expend funds.
Perfect, and that’s the beauty of Manager, there are different mechanisms available to apply to different business requirements. We can also bring control accounts into the mix. So what I understand is that you have an elaborate chart of account structure. It may be feasible to consider a simplified chart of accounts structure (more generic) and use Divisions as your cost centres. But my argument remains that the Division function should remain separate from Project-based accounting because it will provide an additional dimension for reporting.
As mentioned in an earlier post this can not be achieved with manager, also because it does not allow for live rollrng budgets. We use Manager for small youth businesses in Africa that we support. The institute uses Oracle Financials (multi-country, programs, projects, campuses, etc. which Manager will not be able to deal with).
What is the difference between Project and Division?
Read the first post in this thread for the developer’s view of projects. Read the Guide for a discussion of divisions: Create and manage divisions | Manager. Clearly, however, implementation and interaction between features is still evolving.
@lubos as a recommendation, can the Project name be a “Project ID” unique number, and a description field be added?
also make it so the description appears when selecting the Project dropdown in SI & PI
Do you mean selecting multiple items on a drop-down and then Manager automatically inserts lines to accommodate the selection?
I don’t have a specific layout in mind, however this mock up may provide some ideas.
I would think a bulk edit with drop-down conveniently positioned near to the matching column, with an apply button could populate all lines of that data type, then where an individual line has a different value, it can be edited in the same way it is now.
Just started the use of projects and this feature helps my company in tracking costs and revenues. Thanks! Most appreciated. Probably in the future it is interesting to offer a possibility in ‘Reports’ to select revenues and costs per period and project. Regards, Ed
My understanding from all previous posts is that Projects is applicable to Assets, Liabilities, Income, and expenses Accounts (with exception of transactions involving accounts receivable, accounts payable, and inventory on hand to avoid double entries), while Division can only be used with Income and Expenses. So my inquiry is why when creating a payslip a Division field appears for the Deductions items despite the fact that Deductions items are linked to Liabilities accounts.
I am using Cloud Version on Mac.
Kindly see the screen shots:
So, am I missing something?
And the full balance sheet as well. But it works differently. You can basically assign entire balance sheet accounts like Banks, Cash, Fixed Assets, Employees, etc. to Divisions.
That’s as far as Control Accounts go, but it seems like “Income Tax” and “Social Security” are not control accounts, right?
Because a while ago, expense accounts were also permitted in deductions – thankfully.
In theory, whatever P&L item used in a transaction for a BS account, it should inherit it’s Division but Divisions and Projects are still evolving so … only time can tell.
Right
That’s why they’re not already assigned to Divisions.
But this had me thinking that Division ought to be filled when you select an employee, at least that’s how it seems to me.
I’m curious what others think of this.
@Drew_Mike what do you think?
Totally Agree
Not necessarily. While an employee might be assigned to a division, it is entirely possible for that employee to work on things that are not division-level activities and for which the payslip items are assigned as top-level (meaning not division-level). Or am I misunderstanding what you are referring to?
We are on the same page, but on a different line.
What you say is true. But I’m not suggesting locking Division fields like the customer field on invoices.
What I am suggesting is prefilling like we have with items and tax codes. The user still can edit the prefilled field.