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How to convert from a standard to a departmental or divisional company in EasyACCT

by Intuit• Updated 1 year ago

This article will help you to convert from a standard company to a multi-departmental or divisional company in EasyACCT. For information on setting up a departmental or divisional company, refer to How to Set Up a Departmental or Divisional Company.

Before you start

  1. Make a backup of the company.
  2. Print the Chart of Accounts.
    • Each department or division will have the same chart of accounts, but with the appropriate number of the department/division as the prefix. For example, account 1000 will need account 11000 for department 1, 21000 for department 2.
  3. Determine if this is to be a departmental or divisional company.
    • Departmental companies have a single balance sheet and multiple income statements:
      • 1 Combined Balance Sheet and 1 Combined Income Statement + Departmental Income Statements.
    • Divisional companies have multiple balance sheets and multiple income statements:
      • 1 Combined Balance Sheet + Divisional Balance Sheets and 1 Combined Income Statement + Divisional Income Statements.

Option 1: Single department or division

Use this option when all of the transactions in the existing accounts will be assigned to a single department/division.

  • EasyACCT doesn't allow posting to a combined account.
  • Transactions can only be posted to the department/division accounts.
  • The program will automatically roll them into the combined account after posted for financial statements.
  1. Create the first set of department or divisional accounts. EasyACCT will automatically go through all current transactions and reassign them to the first department/division for you.
    1. Go to Write-Up > Data File Utilities > Del/Renumber Accounts.
    2. Choose the first option to select specific accounts to delete or renumber, then Continue.
    3. Assign a new General Ledger Account Number by entering a New ID for each account that needs to have transactions re-assigned.
      • For Departmental companies:
        • Don’t renumber asset or liability accounts.
        • For revenue and expense accounts, enter a new ID by adding a 1 to the beginning of the original account number. For example, account 300 becomes 1300 for department 1. 
        • Don’t skip any revenue and expense accounts, even if you might not need them for a department. 
      • For Divisional companies:
        • Assign new IDs to all accounts. For each account, enter a new ID by adding a 1 to the beginning of the original account number. For example, account 200 becomes 1200 for division 1. 
        • Do not skip any accounts.
  2. Create a new Combined Chart of Accounts:
    1. Go to Write-Up > Update Company Files > General Ledger Accounts.
    2. Set up each combined account with the same account number and description as if it was as a standard company (using the Chart of Accounts you printed before starting).
      • For Departmental companies:
        1. Don’t re-enter asset and liability accounts, these should all remain the same with the Types A and L.
        2. Set up the same Revenue accounts as Type I.
        3. Set up the same Expense accounts as Type C.
      • For Divisional companies:
        1. Set up the same asset accounts as Type P.
        2. Set up the same liability accounts as Type D.
        3. Set up the same revenue accounts as Type I.
        4. Set up the same expense accounts as Type C.
          • If account balances are transferred to either the Lacerte or ProSeries tax program, set up Tax Pg/Sch and Tax Lines for each departmental or divisional account. 
          • The combined accounts don't transfer to the return. 
  3. Use the automated feature to add the remaining Chart of Accounts for each additional departments/divisions:
    1. Go to Write-Up > Data File Utilities > then Multi-Departmental Accts.
    2. Indicate the number of additional departments/divisions to create.
      • Recall that one department/division and the combined accounts are already set up (if there are 3 departments and the combined accounts, enter 2 additional departments).
  4. Adjust the financial statement template:   
    1. Go to Write-Up > Update Company Files > Financial Statements > then select Statement Templates.
    2. Change the Type of Financial Statements from Standard to Multi-Departmental or Divisional.
    3. Enter the total number of departments or divisions (not including the combined statements) and Save.
    4. Make sure the account number ranges on each statement tab are assigned to the combined accounts.
      • As long as the setup is correctly designated by the type of each account in B, the program will print each department/division and combine the dollar amounts in the combined statement.
  5. If you would like to change the department/division names, refer to How to Print Department Names on Financial Statements.
  6. Repost all transactions in all months: 
    1. Go to Write-Up Processing > Print Reports > select the General Ledger and then the payroll journal reports to print.
    2. Print one month at a time, starting with the first month in the prior year and ending with the last month of transactions. 
    3. If the Accounts Receivables or Accounts Payable modules are used, select the G/L Distribution Report (detailed or summary). 
  7. Reassign the sales accounts in the AR Setup Wizard to reflect the department/division accounts.

Option 2: Different departments or divisons

Use this option when the transactions from the existing company will be split between different departments or divisions.

  • EasyACCT cannot automatically reassign individual transactions to more than one department as in Option 1, therefore it will be done manually. 
  1. Change the Chart of Accounts to indicate the Combined Account Types:
    1. Go to Write-Up > Update Company Files > then General Ledger Accounts.
    2. For each account that will become a combined account, change the Account Type as follows: 
      • For Departmental companies:
        1. For each expense account change the E to a C
        2. For each revenue account change the R to an I.
        3. Do not change the asset and liability accounts.
      • For Divisional Companies:
        1. For each asset account change the A to a P.
        2. For each liability account change the L to a D.
        3. For each revenue account change the R to an I.
        4. For each expense account change the E to a C. 
  2. Use the automated feature to add the remaining Chart of Accounts for each additional departments/divisions:
    1. Go to Write-Up > Data File Utilities > and Multi-Departmental Accts. 
    2. Enter the number of departments or divisions to create, and Continue.
  3. Manually reassign every transaction from the combined account number to the department/division it belongs:
    1. Go to Write-Up > then Enter Transactions and access the first month in the prior year.
    2. For each transaction, change the account number from the combined account to the departmental or divisional account. 
      • If payroll is entered, select Payroll Entry. For each field on the check with an amount, select the gray box with an account number and change it from the consolidated account to the departmental or divisional account.
      • If the Accounts Receivables module is used, access the Special Journal screen, select the AR journal, and change the account numbers from the consolidated accounts to the departmental or divisional accounts.
      • If the Accounts Payables module is used, access the Special Journal screen, select the AP journal, and change the account numbers from the combined accounts to the departmental or divisional accounts. 
      • Change each vendor, customer and employee record to reflect the new departmental or divisional accounts instead of the combined accounts.
  4. Adjust the Financial Statement Template:
    1. Go to Write-Up > Update Company Files > then select Financial Statements and Statement Templates.
    2. Change the Type of Financial Statements from Standard to Multi-Departmental or Divisional.
    3. Enter the total number of departments or divisions (not including the combined statements).
    4. Verify that the account number ranges on each statement tab are assigned to the combined accounts.
      • As long as the setup is correctly designated by the type of each account in B, the program will print each department/division and combine the dollar amounts in the combined statement.
    5. Save.
    6. If financial statement customizations were made, use the printed Financial Statement Design report to re-enter the customizations. Use this report as a guide to make the same customizations to each division or department. 
  5. Repost all transactions in all months: 
    1. Go to Write-Up Processing > Print Reports and select the General Ledger and Payroll Journal reports to print. Print one month at a time starting with the first month in the prior year and ending with the last month of transactions. 
    2. If the Accounts Receivables and Accounts Payables modules are used, don't reprint the G/L Distribution Reports because this will cause the journal entries in the Special Journals to revert to the combined accounts.
    3. Enter the Special Journals for AR and AP and reassign the GL distribution to the appropriate departments/divisions.
  6. Reassign the sales accounts in the AR Setup Wizard to reflect the department/division accounts.
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