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Segments

Introduction

Segments are being used to have a more detailed classification of the costs, also to obtain calculations of components or departments of the company. By using the segments you can obtain a Profit & Loss Statement per unit, department or branch, without having to create specific accounts for each unit.
For example a museum can use the segments in order to know the income, the personnel expenses or the setting up expenses for each exhibit.

Segments are being used when a systematic attribution is necessary, that follows the transaction in debit or credit.
Cost centers, on the contrary, are normally being used for additional cataloging, less structured and when the account sign is not necessarily being followed.

Cost centers and segements can be used at the same time.

Characteristics of the segments

  • Segments are accounts preceded by a colon ":".
  • Segments codes can consist of numbers or letters.
  • There may be up to 10 levels of segments.
  • The number of colons preceding the symbol for the segment indicates the number of level.
    • :LU segment of level 1
    • ::P1 segment of level 2
    • :::10 segment of level 3
  • For each level there may be an illimited number of segments.
  • The different levels of the segment are independent of each other.
  • The segments do not have BClasses and do not have a currency symbol
  • The calculations for segments are done in basic currency.
  • In the transactions, the segment follows the debit and credit account.
    It is not possible to record on a segment without having an account.
  • In the transactions, one can use a "-" as a separator instead of a ":" if on the File properties (Basic data) of the File menu the option Use the minus sign (-) as segments separator has been activated.
  • Account cards of the transactions on single segments can be obtained.

 

Setting up segments

The segments have to be configured in the Accounts table, Account column, at the end of the chart of accounts.

  • Insert an asterisk in the Section column in order to define the section relative to the segments
  • In the Description column enter the Segments title
  • Enter the description of the first-level segments, and in the Account column, insert ":"
    • List the segments of the first level, entering an identification code for each one of them in the Account column, preceded by ":"
    • Proceed by entering the segments of the second level (and, if necessary, those of the third), in the same way as those of the first level, with the only difference that the segment codes need to be preceded by "::" or by ":::", depending on their level.
       

Segment balance

The segment is a subdivision of what has been entered on an account. The segment amount is thus always relative to an account, and in order to have the segment total, you need to use an Accounting report (from the Account1 menu), with a subdivision by segment (Subdivision tab). 

In the chart of accounts the segment balance is indicated. This balance will be zero if the segment is used in both Debit and Credit accounts, since the amounts compensate themselves). The segment balance will be visible only when using it with the Credit or the Debit account, associated with the Profit and Loss statement account.

Transactions

The segments are being entered in the Transactions table, followed by the main account from the account segment.

Each segment is preceded by the colon, or by the minus sign (-), in case the option Use the minus sign (-) as segments separator has been activated in the File and Accounting properties (File menu).

If the chart of accounts contains accounts with "-" or "_", as for example in the clients/suppliers register's accounts), you can't use the same symbols as segments separators; in this case you need to deactivate the corresponding option and use the ":" symbol.

When a segment that belongs to more than one level is being recorded, the segment of the first level needs to be entered right after the main account; then, continue with the code of the second level.


Report

Reports of the segments are obtained with:

Report subdivision by level

In the Enhanced Balance Sheet with groups, in the Subdivision tab, indicate the segment level to be used.


Summary Report

This is a summary with the segment that have been setup in the Accounting plan section, with a possible subdivsion (if desired) by period or by segment.

 

Segment non assigned

The "empy" segment gathers all the amounts that have been recorded without specifying a segment. It is possible to setup the title for this segment in the Accounts table. Please also select the Segment heather: Description option in the Subdivision section.

Related document: Managing different projects

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