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Setting Up SM Departments

SM Departments define the GL accounts for cost and revenue on a work order. Cost accounts post from work completed; revenue accounts post when work is billed. You need at least one department. If everything hits one GL set, one department is enough. After setup, assign the department to SM Service Centers (and, for a finer split, alternate departments on divisions in SM Divisions).

GL Co defaults from SM Company Parameters. That company’s GL is updated only for work orders whose service center uses this department.

Trimble procedure: Set Up an SM Department (Service Management Setup). Menu: Service Management → Programs → SM Departments.

Before you start​

  • Define GL accounts for all cost and revenue cost-type categories, even ones you will not use. Field defs mark Cost, Revenue, Cost WIP, Revenue WIP (Equipment, Labor, Other, Material, Subcontract, Burden), Agreement: Revenue, Misc Offset Account: Cost, and the override Cost / Revenue / Cost WIP / Revenue WIP accounts as Required.
  • Cost posting depends on line type and whether you track WIP; billing then hits revenue.
  • Accounts must exist in GL Chart of Accounts with subledger S-Service or null (agreement accounts: S-Service or blank).

Steps (Info)​

  1. Open SM Departments.
  2. Enter Department (numeric or alpha, up to 10 characters).
  3. Enter Description (up to 30 characters).
  4. Enter Cost / Revenue / Cost WIP / Revenue WIP — one GL per cost-type category (Equipment, Labor, Other, Material, Subcontract, plus Burden on cost/cost WIP). F4.
  5. Enter Agreement: Revenue — credit for agreement periodic billings. Required. Updated only when the agreement recognizes revenue when billed.
  6. Optionally enter Agreement: Deferred Rev — credit when recognizing revenue for S-Amortize or C-As Cost Incurred. Not labeled Required.
  7. Enter Misc Offset Account: Cost — single offset when posting miscellaneous work completed. Required.
  8. Optionally enter Work Order: Deferred Rev (field def heading Deferred Rev) — used by SM Revenue Recognition for customer work orders with C-As Cost Incurred. Not labeled Required.
  9. Save. Then (linked topics): GL overrides, burden rates, standard-item offset overrides, cost-type offset overrides.

Overrides tab​

Match keys: cost type category (1 Equip, 2 Labor, 3 Other, 4 Material, 5 Subcontracts), optional Burden (labor only), liability type, cost type, call type. Seq: enter +. Department applies only if the work order’s service center or division is assigned this department. Other-category exception: any cost type is allowed.

  • Labor + Burden checkbox disables Revenue and Revenue WIP overrides; liability type then drives Cost and Cost WIP only.
  • Overrides win over the default accounts.

Burden Rates​

Liability type; E-Exactly as Payroll or R-Rate. Rate only if R-Rate. Must set a rate for every liability type you use, or no burden GL update occurs.

Standard Items / Cost Types tabs​

Seq +, item or SM cost type, misc offset (S-Service or null). Offset precedence: standard item, else cost type, else Info-tab misc offset. Cost-type offset also hits miscellaneous lines and non-stocked inventory lines.

WIP pattern​

Cost WIP / Revenue WIP only if Track WIP is checked on the call type (SM Call Types) and the scope status is Open. If the scope is Completed, Cost / Revenue is used even when WIP is tracked. Closing the scope transfers revenue WIP into the category revenue account.

Hard rules​

  • All default cost/revenue (and WIP) category accounts are required even if unused, but burden GL updates only if a burden rate exists for that liability type.
  • GL subledger must be S-Service or null (agreement: blank allowed). Procedure wording that says “expense accounts” is looser than field defs (any valid account with that subledger).
  • Labor cost does not post on the SM line; it posts when PR Payroll Process and PR Ledger Update run. Burden is the same. Equipment posts on the equipment line. Material stock posts on the inventory line; purchased material hits PO Receipts Entry, then AP backs out the estimate and posts actual cost in AP Transaction Entry. Subcontract posts on misc or purchase lines.
  • Revenue GL for “Other” is only for cost types whose category is Other. Misc lines that use equipment/labor/subcontract/material cost types hit those revenue accounts instead.

Notes​

  • Related: SM Service Centers, SM Divisions, GL Chart of Accounts, Updates to GL, About GL Account Overrides, SM Company Parameters, SM Cost Types, SM Call Types, HQ Liability Types, SM Work Orders, SM Revenue Recognition.
  • Same-sidebar follow-ons: Set up Burden Rates; Set up Override Cost & Revenue GL Accounts; Set up Override Offset Accounts for Standard Items; Set up Override Offset Accounts by Cost Type.