BRANCH WISE BUSINESS MANAGEMENT

There are instances when a business has many branches and it sells through them.A case where each branch is being maintained as a profit centre. Such that at the end of time period I should be able to judge how each of my centre is doing.

Let us see how we can do that for a company that has 3 Depots and a HO. The HO only manages the transfer of money and order processing actual purchase and sales is done from each depot.

First you need to create the cost centers, preferably without Cost category.

Now let us see what we want:-

	Depot 1	Depot 2	Depot 3
Sundry Creditors
Sundry Debtors
Direct Expenses
Non-Reimbursable
Tea
Salary
Miscellaneous
Indirect Expenses
Reimbursable
Travelling
Freight

Here I have clubbed Freight and Travelling under Re-imbursable Expenses as these will be reimbursed by the client once I provide the details to him.

So first enable the cost centers. We have not used cost categories.

Cost categories should be used only when I have to use a lot of cost centers and for different purpose.

We will be applying cost centres only to the suppliers/debtors and not any of the purchase / sales ledgers.

Similarly create the other two depots

Now once this is done.

We need to tag our purchase/sales and expenses with specific depots (cost centers).

We create the supplier Cipla( assuming this is one of the suppliers for us) as

1.Let us say we are buying some material from Cipla and this purchase is by Depot 1.

As I had mentioned in one of my previous articels too – use cost centres only in the voucher mode and not invoice mode to be able to tag the cost centres correctly.

The reference BC -002 signifies that the bill was passed from Depot 1 and is specific to the depot.

Now we see the report as :-

Similarly when the sales is done by various depots the relevant depot is tagged.

Now let us make a part payment of 12000 to this creditor CIPLA for Bill No BC-002.

There may be other purchases but now we will be making payments against this bill only.

Then Press F12 and select Preallocate bills to yes

Also select Table of bills to yes

And you get a sub form as :-

Now we select this bill and enter the amount as 12000.

Automatically another pop up is shown for allocating the cost centre details for payments to cipla.

A payment voucher is passed as :-

Now again check the transactions with CIPLA at

and select Depot 1

This clearly shows goods worth 15000 were bought from CIPLA and payment of 12000 has been made to CIPLA and the remaining amount is 3000.

Let us say a sale is being made as:-

Also there has been a travelling expenses incurred by all the depots and the expenses are different for all the different depots. This travelling expense is expected to be proportionate to the business done by each depot.

Let us say payment of 3000 is being made to Depot 1 for travelling expenses.

Let us say payment of 2500 is being made to Depot 1 for travelling expenses.

Another payment of 5000 is being given to depot 3 for travelling expenses.

To view the reports go to

–à

–à –à

Select any one : and you get the report as :-

To view a detailed report press F1 and then :-

Expand all:- Press F1 or F12 and

Since we want this for all cost centres

Now :- Press ALT-N

Press F12 and select No for closing balance if you want a better view:-other wise this is fine too.

This way you will get a beautiful report on which depot did how much business and how much money was spent on each depot. For example goods worth Rs. 15000 were bought from Cipla and payment of 12000 has been made to the supplier for Depot 1. Also it shows that Depot 1 has made sales of 1.5 Laks (Dr. 153440) and has received payments worth 11000 from the debtors.

Similary this information is obtained for all the depots.

Let us compare with the report that we had wanted initially.

	Depot 1	Depot 2	Depot 3
Sundry Creditors
Sundry Debtors
Direct Expenses
Non-Reimbursable
Tea
Salary
Miscellaneous
Indirect Expenses
Reimbursable
Travelling
Freight

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