Hello,
I use QB Enterprise Desktop.
I'm am planning to grow my business by adding "departments". New departments are essentially an additional line of business service. From a book keeping perspective I need to have profitability tracked by each department. However, there are also general expenses (i.e. Rent, Insurance, Supplies, etc) ,or what I am calling "Corporate Expenses", that are not going to be posted to the departmental business unit P&Ls. So the profit and loss for the department will be Department_Revenue-Departmental_COGS.
The challenge is that each department has payroll(labor) expenses directly associated with doing their work. Then there are also Payroll(labor) expenses that sit above the departments and are Corporate Expenses (i.e. CEO, VP Finance, Etc).
I believe the best way to do this is make payroll expenses a COGS for departmental labor and leave higher level labor (Corporate) in the expense toward to bottom of my P&L. I know the Payroll items can be placed in classes when doing payroll (we use Intuit Payroll) which is great however I'm concerned about Payroll items like Tax Items, Pension Expenses, etc.
Does anyone have a practice for solving for this. I've got to believe this is a common setup. Any help would be much appreciated.
Thanks in advance.
