I have just taken on a new client. Up until this month they produced 2 magazines and they were invoiced for the printing and all other costs together, so everything went on Sage in one big lump. They have just launched a new magazine so would like me to split the managment accounts into separate magazines, so they can compare how each magazine is doing.
My question is. Should I set the magazines up in Sage as three different cost centres (are these the same as departments?) or three different projects?
They currently put invoices on through the 'invoice list' button in Customers so they go on as product invoices rather than sales invoices if that is any help. The products are 'full page ad in magazine X, half page ad in magazine Y' etc. so it specifies here which magazine it is but I don't know how to use that information when splitting P&L. I thought I might need to put invoices on and somehow allocate them to a different cost centre or project, but I can't see where to do that when entering product invoices (I've always entered sales invoices under the customer before where they have a space for department and project number).
Also when putting on expenses/ supplier invoices for fixed costs such as rent and rates, do I just split the amounts three ways between the three magazines?
Hi, where I work we create three monthly management reports for 1) Sales, 2) Service & 3) Parts. I do not use cost centres but this is how I do it:
Use three different sales/ purchase nominal codes for each department e.g. Sales 4000, Service 4100 & Parts 4200. So you could have magazine X 4000, Mag Y 4001?
Use a different department number for each mag. We spilt every purchase/ expense to the relevant department number.
For the overheads I split the cost three ways and allocate the amount to each department.
I print off the nominal activity reports for each department in order to do the reports.
