Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people, just like you, are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
Solved

Sage 50 Accounts Professional: How to create cost centre

Posted on 2010-09-24
5
3,520 Views
Last Modified: 2012-05-10
Hi,

I am evaluating Sage 50 professional.

It has been a while since I worked on financial systems.
Re: Nominal Ledger
 
How do I set up multiple cost centres - at present there appears to be only one.

I want to process accounts for 4 different companies within the nominal ledger.  I would expect that I could do this by creating new "cost centres" .  How do I do this ?
0
Comment
Question by:Patrick O'Dea
  • 3
  • 2
5 Comments
 
LVL 31

Expert Comment

by:moorhouselondon
ID: 33759747
Strictly speaking it can't be done with Line50.  However, it is possible to achieve by creative coding of the Nominal Ledger.  Best to use all 8 digits though if you have a lot of Cost Centres, however you will need to migrate all the Control Accounts (e.g., Debtors Control Account) to 8 digit accounts otherwise there will be problems with P&L and BS ranges.  What you can do having set this up is to use a particular group of digits within the Nominal Code to act as a Cost Centre Code.  

I recommend you have a Nominal Ledger section per Cost Centre, rather than having say a group of Cost Centre Codes per Nominal category.

With ODBC you can generate all your reports using Excel.  If you do this however, I suggest that you start your Nominal Ledger at 10000000.  Reason is that Excel does irritating things with numbers that have leading zeroes on them.  

This comment is an overview which might gloss over details which need explaining in more depth, please come back to us for a more in-depth procedure.
0
 
LVL 31

Expert Comment

by:moorhouselondon
ID: 33759767
Let's say you have 4 Cost Centres A B C D

Nominal Ledger CC A range:-

10000000 - 19999999

Nominal Ledger CC B range:-

20000000 - 29999999

Nominal Ledger CC C range:-

30000000 - 39999999

Nominal Ledger CC D range:-

40000000 - 49999999

Each Cost Centre uses an identical structure, or leaves a gap if no entry exists e.g., Widget Sales might be coded 10004000, 20004000, 30004000 for example.  You will also need a Nominal Code range for things that are Company-wide rather than specific to a CC, these could all be lumped into the range 9XXXXXXX for example.

You would have a P/L Layout with 4 mega-sections and a B/S Layout with 4 mega-sections, plus you can define Cost Centre P/L's and B/S's.

***Do Not be tempted to use Sage's Department feature.  It is too easy to forget to enter a Department at time of posting a transaction, plus the reporting is not as comprehensive.***
0
 

Author Comment

by:Patrick O'Dea
ID: 33759972
Thanks Moorhouselondon for a very comprehensive answer.

Two points of clarification;

1. I understand your explanation above.  I am just wondering how much grief it will cause in practice?  Would it mean years of painful compromises and convoluted processes.  (Probably not but I just thought I would ask since you may well have been down this road).

2. Is there any Sage product (or other supplier in same budget) that will facilitate multiple cost centres AND a strong management reporting facility.   I am not necessarily stuck to any one product/supplier.

Thanks again,
great answer in the first place.
0
 
LVL 31

Accepted Solution

by:
moorhouselondon earned 500 total points
ID: 33761202
I have setup this kind of arrangement for several clients.  The only problem I've had is with accountants coming in later on, misunderstanding the setup and doing silly things (like reorganising the Chart of Accounts and inadvertantly clearing down accounts that were clearly Balance Sheet related at Year End) - I'd say a very, very large number of Sage users stick with the Standard Nominal Ledger, and external overseers may therefore freak out when confronted with something different.  It is important that you get everyone involved agreeing to this method of doing things beforehand.  

The thing about many Accounts packages (of which Sage is an example) is that once a Nominal Account is setup and posted to is that it is impossible to delete that account later without someone knowledgeable about the technical aspects of Sage getting involved.  This is for fraud prevention reasons and makes things less flexible for day-to-day reporting purposes.  

What I do with clients who need to go a bit further than what Sage can offer them "out of the box" is to write front-ends which funnel transactions into Sage and do the day-to-day reporting, and use Sage for certain elements (which can vary depending on requirements).  This is a compromise to a certain extent, but a lot cheaper and easier to understand than some all-singing all-dancing systems I've come across, which in any case need careful configuring.  

Another advantage of "front-ends" is that they can cut down the number of transactions actually posted into Sage.  Sage can become unwieldy with huge numbers of transactions, which becomes worse using ODBC to filter and report on transactions.

N.B. I have no accounting qualification, and this must be borne in mind when reading my comments.
0
 

Author Closing Comment

by:Patrick O'Dea
ID: 33761426
Excellent
0

Featured Post

Free Tool: Site Down Detector

Helpful to verify reports of your own downtime, or to double check a downed website you are trying to access.

One of a set of tools we are providing to everyone as a way of saying thank you for being a part of the community.

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

Suggested Solutions

Hi, I've just fixed a problem with Sage 50 Accounts 2010 crashing when creating a new Company.  I've spent nearly 4 hours on it including three calls to the Sage helpdesk (they didn't work it out in the end - I did!) ... so I thought I'd share th…
As an accountant it is essential that I am able to provide accurate and timely information to management and staff.  One of the challenges that I have faced is the need to report on a time period, whether it be a month, quarter, or year, and wanting…
Nobody understands Phishing better than an anti-spam company. That’s why we are providing Phishing Awareness Training to our customers. According to a report by Verizon, only 3% of targeted users report malicious emails to management. With compan…

828 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question