Profit centers let you track the financial performance of different parts of your business without maintaining a separate set of books.
Each profit center has its own chart of accounts. Every account can belong to a profit center, but it is not required. Profits centers are part of the Chart of Accounts.
Profit centers are used primarily for printing financial statements. Income statements, trial balances, balance sheets, and other financials can be printed for one profit center or all profit centers. Printing financials for one profit center shows only the accounts that have the selected profit center number. Printing financial statements for all profit centers will show all accounts, whether they have a profit center number or not. You can also print budgets, detailed general ledgers, and analysis reports by profit center.
 Profit centers aren’t required, and have no other affect on the General Ledger.
Profit centers can also be added to clients, jobs, tasks on the Task Table, and staff members. Whether a client, job, task, or staff member has a profit center doesn’t affect the General Ledger; the G/L is only updated from debit and credit accounts. Instead, having profit centers on clients, jobs, tasks, and staff members gives you more flexible and insightful production and job accounting reports.
You can set up and use as many profit centers as you need. Each profit center is identified by a user-defined code which has a maximum of 10 letters or numbers. To set up a profit center, you will add a unique set of G/L accounts. The account numbers can include the profit center number to distinguish them from the other accounts.
The profit center isn’t needed when adding invoices and other entries. Since the G/L account knows its profit center, all you need to enter is the right account number. This also lets you move accounts between profit centers as needed without making time-consuming adjusting journal entries.
| Profit centers Dozen of profit centers can be created and used for financial reporting. The profit centers number is user-defined, and can contain letters or numbers. |
The profit center is independent of the account number. The account number doesn’t have to change to move an account into a different profit center. Also, any account without a profit center selected belongs to the entire company.
| G/L Accounts A G/L account can be easily moved to a different profit center by simply editing the PC number. That’s because the profit center number is used for sorting by financial reports. |
When a new job is opened, the profit center is copied from the client automatically. If the client doesn’t have a profit center, then the job’s profit center is blank. Once a job is saved, its profit center can be edited in the Specs window. If a job has a profit center, only tasks that also belong to the same profit center can be added to the job.
Although a staff member can have a profit center, he or she can still work on any job. Also, a staffer’s profit center number has no affect on their access privileges. It’s strictly an option field that’s useful for sorting staffers on custom reports.
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Customizing the word "profit center": The word profit center is customizable as part of your Preferences. It can be changed to division, department, office, or any term you use to identify different parts of your business. To rename the words profit center, choose Preferences from the Setup menu, then choose Names from the pop-up menu. Enter the new term for profit center over the old then click Save. Once saved, the new name will appear everywhere the words profit center are used.
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