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<< Click to Display Table of Contents >> Navigation: MLS 2026 Fully Integrated Accounting > General Ledger > Using Departments |
Departments are an optional advanced feature used to track income and expenses by business category or operational area.
Examples include:
•Mechanical repair
•Body work
•Electrical service
•Paint
•Tire sales
Departments are most useful for businesses that want more detailed financial reporting and performance analysis.
⚠️ Most MLS 2026 users do not need departments initially.
It is strongly recommended that users become comfortable with the standard General Ledger before enabling departmental accounting.
Departments allow MLS 2026 to:
•Track totals separately by department
•Produce department-based reports
•Analyze profitability by business area
Examples:
•Mechanical department sales
•Body shop labor
•Electrical diagnostics
•Tire revenue
Departments are used primarily for:
•Reporting
•Analysis
•Management review
⚠️ Departments do NOT change the overall General Ledger totals.
The General Ledger still reports:
•Total income
•Total expenses
Departments simply create:
👉 reporting subsets of those totals.
Before enabling departments:
•Design the department structure on paper first
This makes it easier to:
•Organize categories logically
•Adjust the structure before data entry
•Avoid confusion later
M = Mechanical
B = Body
E = Electrical
P = Paint
T = Tires
Use codes that are:
•Easy to remember
•Easy to identify quickly
Departments are used only with:
•Income accounts
•Expense accounts
They are not normally used with:
•Assets
•Liabilities
•Equity accounts
MLS 2026 expects master income accounts for:
•Parts
•Labor
•Sublets
Example:
40100 = Parts Income
40200 = Labor Income
40300 = Sublet Income
For each department, create matching subaccounts.
Example:
40100 Parts Income
40100 A Parts Income - Mechanical
40100 B Parts Income - Body
40100 E Parts Income - Electrical
The same structure should also be created for:
•Labor income
•Sublet income
•Department-specific expenses (if desired)
The master account accumulates:
👉 total activity for all departments.
Department subaccounts track:
👉 activity for individual departments only.
Example:
40100 Total Parts Income
40100 A Mechanical Parts Income
40100 B Body Parts Income
40100 E Electrical Parts Income
This allows:
•Total reporting
•Department reporting
at the same time.
⚠️ Department tracking activates automatically when:
•Departments are enabled
AND
•Accounts exist with department codes
If departments are not being used:
👉 leave department fields blank.
Departments are configured through:
•Tools → Setup → Lists → Departments
The system first asks whether departments should be turned on.
Select:
•Yes to enable departmental tracking
Enter the master account numbers for:
•Parts
•Labor
•Sublets
Example:
Parts = 40100
Labor = 40200
Sublets = 40300
Enter:
•Department code
•Department description
Example:
M = Mechanical
B = Body
P = Paint
E = Electrical
When entering:
•Parts
•Labor
MLS 2026 provides a field for the department code.
The system remembers the previous department entered and automatically carries it forward unless changed.
This speeds up data entry during repetitive operations.
When departments are enabled, many reports allow filtering by department.
Examples include:
•Parts reports
•Labor reports
•Workorder summaries
If the department field is left blank:
👉 all departments are included.
Workorder Reports also include:
•Department summary reports
These provide:
•Sales totals
•Labor totals
•Department comparisons
Departments are not separate General Ledger sections.
The General Ledger always reports:
•Combined totals for each account category
Departments simply provide:
👉 additional reporting detail.
•Start without departments initially
•Enable departments only when detailed analysis is needed
•Keep department structures simple
•Use easy-to-remember department codes
•Plan the structure carefully before activation
Departments are especially valuable when:
•Multiple business divisions exist
•Different service categories are managed separately
•Profitability analysis is important
•Management wants operational comparisons