Divisions in Magnifi: Setup, Allocation & Reporting

Divisions - Create & Manage

Purpose

Divisions allow you to create multiple projections within a single Magnifi file and view results either at the division level or at the overall organisational (All Divisions) level. They are also useful for simple consolidations, where multiple entities can be set up as divisions and reported together at the All Divisions level. For more detail on the different structure options, see Organisation Structure – Overview.

When to Use

  • You have multiple locations or departments and want side-by-side reporting.

  • You want to project labour costs and capacity by business unit (division) and roll up to an overall result (organisation).

  • You’re doing a simple consolidation: you can set up multiple entities as divisions to create a consolidated view. This approach does not support having divisions within each entity which is why we refer to it as the simpler option. 

  • You need flexibility to assign some accounts to divisions (e.g., income and direct costs) while keeping others unassigned for consolidated-only reporting (e.g., shared overheads).

  • You use Xero Tracking Categories and want divisional reporting by tracking category (only applicable if all Xero transactions have tracking categories).

How To

Create a Division

  1. Go to the Home Page.

  2. In the organisation chart, click the + under the organisation name.

  3. Enter the division details and save.

Assign Accounts to a Division

  1. Open Chart of Accounts.

  2. Use the Division column to select a division for each account as needed.

  3. Leave an account unassigned to show it at All Divisions only.

  4. To report divisions to Gross Profit only, assign income and direct costs to divisions and leave overheads unassigned.

Assign Employees to a Division

  1. During employee setup: enter divisional percentage allocations as follows:


      2. Or go to Labour Drivers → Employees/Hours per Week tabs → click Division Allocation to set allocations in bulk.

Notes
Labour costs (and capacity, if used) is projected based on these allocations. Unassigned employees appear at All Divisions.

Exclude Inter-Entity Transactions 

  1. Open Chart of Accounts.

  2. Mark relevant accounts as inter-entity to exclude them from reporting at "All Divisions".

Tips/FAQs

  • Divisions vs Group/Entities/Segments

    • Divisions: multiple units in one file with divisional + All Divisions views; also good for simple consolidation.

    • Group Consolidations: use this when you need separate files for each entity, and where each entity may also have its own divisions. This provides 3 layers of reporting (Group/Entity/Division)

    • Segments: combine selected divisions into a custom reporting view. This can be setup later. 

  • Xero Tracking Categories: for divisional P&L to reconcile, every relevant Xero transaction must have a tracking category.

  • Partial Allocation: you can split employees and accounts across divisions via percentages. However if you want to align actual v budget reporting, you need to ensure that your accounting file adopts a consistent treatment. 

  • Keep it Simple: you can setup the organisation and easily add divisions later if needed.