Forum

• # 103442
• Sun 28 Dec 2014 05:44 PM

Hi

employer has a cafe and is now taking on a cleaning contract. I want to put these as 2 seperate departments on sage 50. 

My question is, as the bank account is the same for both parts of the business and also there will be other costs that are shared eg Directors salary, how do i manage this where dept are concerned?

do i.... Set dept 0 as "general" , dept 1 as cafe and dept 2 as cleaning?

or do i just set up dept 0 for cafe and 1 for cleaning? Where would i put general costs?

as for salaries, i want to split them between dept. Can sage 50 payroll post to the different depts From the nominal link?

thanks in advance for your help

carol

• 
  Quote
  

• # 103444
• Mon 29 Dec 2014 11:40 AM

Hi Carol

If you set up three departments with one for general costs you then have the option of posting all general costs to that department, splitting them between the cafe/cleaning/general, or posting them to general with the option of then journalling a proportion of them to each of the other departments. The options are endless! Definitely worth setting up a general department though.

No idea about Sage payroll though. Sorry. I use Moneysoft and post a journal into Sage breaking down the departments.

Alison

• 
  Quote
  

• # 103457
• Mon 29 Dec 2014 09:23 PM

Thank you for your help 

carol

• 
  Quote
  

• # 103458
• Mon 29 Dec 2014 09:42 PM

Hi Carol,

I have done this in the past for a supermarket with 2 branches and a Post Office so had 3 depts.

Personally I would leave the cafe as dept 0 as this is what you have been using for that to date. Just change the name of the dept 0 to CAFE.

Dept 1 setup as CLEANING CONTRACT.

When it comes to posting shared costs eg purchase invoices then allocate each share to each relevant dept.

If you use the same supplier for both depts then it is easier if each dept places a separate order so you get separate invoices. I setup 2 accounts in Sage for the same supplier and setup the depts accordingly. So e.g. Cafe supplier: Booker - I would setup the account as BOO and for the Cleaning I would setup the account as BOO01. I know this sounds like a lot of work but believe me it saves having to remember to allocate the purchase to the right dept!

Equally when posting sales you will have to remember to allocate the cleaning sales to the dept 1.

When you post supplier payments through bank you will also have to allocate them to the depts.

Even though I used Sage 50 payroll I did not use the nominal link as I preferred to make up the journal on a spreadsheet and then post manually into Sage 50 accounts. I setup the depts in the payroll against each employee so I could print off a dept report each payroll which gave the breakdown of PAYE & NI for each dept. With regards to Directors salary you can apportion this and hence the reason for doing the journal on a spreadsheet first. You can always set the journal up in Sage and 'recall' it every time so you only have to put in the figures.

Really not that difficult once you have it setup and running and you can get a separate P&L for each dept. And if you really want to break it down you can also have a separate Vat report for each business/dept.

Hope this helps!

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

• 
  Quote
  

• # 103459
• Mon 29 Dec 2014 11:25 PM

Thanks Marilyn

i was starting to do it this way initially and then i got nagging doubts as to whether this was correct. I think setting up a "general" dept was going to confuse matters. 

To be honest its the salaries that made me think of combined costs and it was the nominal link that was worrying me!

 I have had a go at setting up the nominal link,but  not sure i have done it correctly! Especially when it came to overriding departments etc

i was only going to split the  p&l elements ofmthe payroll to depts and the balance sheet items to general initially but i feel im over complicating things!! 

Basically i just want to be able to run a profit and loss for each dept including their payroll expenses and for it to be accurate! 

Can you create a journal report from sage payroll for entering manually Easily or is it a report you have to manually set up?

i know a payroll  bureau i deal ,with at work,give, us this,journal,report for,entering into sage and its quick and simple so i know it can be done butnot sure  how! 

Im beginning to think nominal link may not give me accurate postings as not confident ive set it up correctly! 

• 
  Quote
  

• # 103461
• Tue 30 Dec 2014 11:12 AM

Hi Carol,

If you send me your email address to mms@mmauran.plus.com  I will send you an excel journal that I setup for payroll.

Maybe this will assist you and you will be able to adjust it to suit your purposes.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

• 
  Quote