If you allocate expenses to multiple departments in CertiflexDimension, you should take a look at the flexibility available by using percentage entries. A percentage entry is a closing entry commonly used to allocate all or a portion of an account’s balance to one or more other accounts.
For a simple example, let’s say you have four departments sharing utility expenses equally. You could be wearing out your calculator when recording your utility invoices. There is a much easier, quicker way to accomplish the same results using General Ledger percentage entries. At the beginning of the next accounting period, change your utility vendors’ default General Ledger accounts to your 1st department’s utility expense account. Next, set up a percentage entry in General Ledger with the following criteria:
Entry Description: Utility Expense Allocation
Posting Period: Monthly
Based On: MTD Account Balance
Account: Your 1st department’s utility expense account
Journal Entry Line 1 Your 1st department’s utility expense account Credit 75%
Line 2 Your 2nd department’s utility expense account Debit 25%
Line 3 Your 3rd department’s utility expense account Debit 25%
Line 4 Your 4th department’s utility expense account Debit 25%
Now when you record utility bills, simply use the default expense account on each vendor. At the end of each month simply select the option to Post Percentage Entries. The system will automatically allocate all your departmental utility expenses for you.