Use tracking codes

Tracking codes are optional. You can apply them to income and expense line items. They were originally intended to support monitoring profitability by division within a single financial entity. But Manager users also find them helpful for monitoring financial performance on major projects, at different geographic locations, or on business brought in by individual sales representatives. You can employ tracking codes selectively. That is, you can apply them only to certain types of transactions or those you want to include in a specific analysis. Different tracking codes can be applied for different purposes, as well.

Example 1
Brilliant Industries wants to monitor profitability of its incandescent and LED lamp manufacturing divisions. It sets up two tracking codes: INC and LED. All income and expenses are designated with one code or the other. At the end of each financial period, Profit and Loss Statements are generated separately for the two divisions. Combined Profit and Loss Statements can also be created comparing performance of the two divisions.

Example 2
Atlas Construction assigns tracking codes to each building project by year: 2016-1, 2016-2, 2017-1, etc. Transactions related to a single project are tagged with appropriate tracking codes. Those pertaining to the business in general are left uncoded. Profit and Loss Statements can be generated for individual projects or the entire company. If necessary, Atlas could designate separate lists of expenses and accounts on which tracking codes would be used for distinct project types. Concrete projects might have tracking codes applied on subcontractor labor, while internally performed electrical projects might have tracking codes applied on wages.

Creating tracking codes

In the Settings tab, click on Tracking Codes, then New Tracking Code:

For purposes of illustration, asume you want to track three divisions: Alfa, Beta and Gamma. Enter the name of the first code and click Create:

Repeat for the other two divisions:

Applying tracking codes to transactions

When you record income, you will be able to select which division the income should be allocated to.

The same applies to expenses. If an expense should be spread across multiple divisions, you can split the expense to allocate the appropriate amount to each division.

Viewing profitability by tracking code

In the Reports tab, click Profit and Loss Statement:

Create a new report by clicking the New Report button.

Define the new report by entering a date range and selecting the desired code in the Tracking Code field. (Leave the selection as Any to see all transactions.) You can add comparative columns for other tracking codes:

Click Create to save the report.

View the report so see income, expenses and profitability of selected tracking codes side by side for the specified period:

Tracking code Profit and Loss Statements only show amounts with tracking codes applied to them. You can check the Tracking Exception Report under the Reports tab to view transactions that do not have tracking codes. This can help you determine whether tracking codes were accidentally forgotten.



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