General Ledger Projects

General Ledger Projects allows you to further sub-divide your departmental accounting activity. Usually projects are established to track the income generated and expenses incurred from a common entity shared by several departments or by one department that has several income producing sources. The following examples illustrate the use of the project number.

Example 1:

A home was listed and sold within the Jones Creek subdivision (a subdivision marketed exclusively by your firm). The listing agent works out of the West Augusta sales office and the selling agent works out of the Columbia County sales office. The gross commission on the sale was $10,000.00. The listing office received $5,000.00 in GCI and the selling office receives $5,000.00 in GCI. On the departmental financial statements for the West Augusta and Columbia County sales offices, each would indicate $5,000.00 in income. On the Jones Creek financial statement, the income would be reported as $10,000.00. In this example, we used a sub-division as an example of a project.

Example 2:

Your firm owns a local tennis club. The club is set up as a department within your general ledger chart of accounts as a profit center. The tennis club holds tennis tournaments throughout the year. You would like to determine which tournaments are profitable and which ones are not. In order to do this, you would set up each tournament as a project number assigned to the tennis club department. By doing so, you would be able to run a "tournament" profit and loss statement for each tournament held. In this example, we used tennis tournaments as an example of several projects.