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EBMS Software
Profit Center & Department Management
Departments are used to help management be able to print profit reports and other necessary information in a logical format, focusing on a specific department of the business. Departments are an extension to the general ledger account numbers and can be a powerful way to analyze the profitability of a specific segment of the company. The system facilitates separate Profit & Loss statements for individual departments or Profit Centers as well as other financial statements.
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Feature Overview |
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A department is a separate activity or product line within a company. A department is coded within the general ledger chart of accounts by the 3-digit extension to the main 5-digit account code.
A Profit Center can consist of a group of one or more departments that are grouped together for financial summaries such as profit and loss and balance statements.
Overhead costs can be posted to a single general ledger account and then allocated to individual profit centers based on a monthly or annual percentage. The percentage distribution is dynamic and can be entered on a monthly or annual basis. For example, multiple profit centers may share a common building and the building costs such as maintenance, utilities and insurances. These costs are then distributed to the individual profit centers based on the percent of space used within the building.
Do you wish to determine which department within your company is profitable? Do you need to identify the areas within your company that are creating a loss? If so, implement the profit center option within EBMS.
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