Business: How do I set up multiple Profit/Loss centers?

[Michael DeBusk]

On 02/07/2010 12:15 PM, G. E. Thomson wrote:

> I'm new to it.  I volunteer at a farm that wants to know the
> profitability of each of its product areas:  Beef, Lamb, Pork,
> Chicken Broilers, Eggs, Turkeys.

You're looking at departmental accounting, which is a slight PITA,
especially if you're volunteering. :)

There's nothing wrong with doing it that way. I think it's more complex
than it needs to be, but that's just me. Instead of:

   Expenses:Turkey:Grain
   Expenses:Beef:Grain
   Expenses:Lamb:Grain
   etc.

I'd do this:

   Expenses:Grain:Turkey
   Expenses:Grain:Beef
   Expenses:Grain:Lamb
   etc.

I think it makes everything (especially reporting) easier if the
accounts are sub-divided in decreasing granularity.

You still have to decide how you're going to divide up expenses like
insurance, electricity, labor, and the like.

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