Business Unit

Modules>Accounting>Business Unit

Business Unit
Represents a financial entity for accounting purposes in essence, a General Ledger for a specific association or organization. A Business Unit is linked to an association as setup in the Membership module. One association may have one or multiple Business Units.

Example: An association is managing separate financial books; one for the association and one for the foundation. These would be listed as separate Business Units in NetForum.

General Ledger
The main accounting record of an organization which uses double-entry bookkeeping. (See below.) The General Ledger is built up by posting transactions recorded in journals and sub-ledgers.

There are seven basic categories in which all accounts are grouped:

  • Assets
  • Liability
  • Equity
  • Revenue
  • Expense
  • Gains
  • Losses

Note: The system is called double-entry  because each transaction is recorded in at least two accounts. Each transaction results in at least one account being debited and at least one account being credited with the total debits of the transaction equal to the total credits.

The Business Unit group item contains only the Find, List, and Add functionalities. Since associations rarely have more than four Business Units, the Query tool and Query Central group item links were not added to the menu.

To navigate to the Business Unit group item, click (or hover over) the Group Item Overflow menu and select Business Unit.

Workflow

  1. Add your Business Unit.
  2. Add the General Ledger (G/L) Accounts.
  3. Add Fiscal Years.
  4. Add Currencies.
  5. Add Payment Methods.
  6. Add Invoice Terms.
  7. Add the Default G/L Accounts for the Business Unit.
  8. Add the Default G/L Accounts for each Product Type.
  9. Add the Multi-Company Accounts.
  10. Add your accounting projects.