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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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