A hardware store may divide the store in the following departments:

• Tools
• Sporting equipment
• Lawn & Garden
• Automotive
• Hardware
• Building supplies, etc

The manager may identify each department as a separate profit center or he may combine a few of the departments together into a common profit center that is managed by the same person. A possible advantage of creating departments for this storeowner would be to determine which departments are the most profitable within his operation.

A farm equipment dealer may want to create the following departments:

• Farm tractor sales
• Farm tractor service
• Harvesting & cultivating equipment sales
• Harvesting & cultivating equipment service
• Lawn and garden equipment sales
• Lawn and garden equipment service

With the following Profit Centers:

• Sales Profit Center which includes all the sales departments
• Service Profit Center which includes all the service departments

Another possible use for Profit Centers would be to identify locations for companies with multiple locations as well as multiple departments within each location. A hardware storeowner may own more than one store with the departments listed in our first example.

Profit Centers can also identify entire divisions within companies, such as:

• Manufacturing division
• Service division
• Sales division

Departments could be identified as fund groups within a ministry or non-profit organization. The system allows multiple funds within the capital folder (Fund folder) and a means of separating costs or revenue by funds.