Profit Centers
Overview
Profit Centers allow businesses to break down their work into groups. Profit Centers were designed to aid in the separation of charges within one business to see revenue generated from each Profit Center. In this tutorial we will explore who should use profit centers and how to add them. Who are Profit Centers for? Example: A business does work that can be divided between the groups "Hospital" and "Reproduction". That business may decide to create two Profit Centers. They may also be used to separate locations of work. Example: A business does work in two states, California and Nevada, but is one business entity (i.e. 1 tax EIN) They can set up a Profit Center for each.
How are Profit Centers selected and assigned to procedures?
The Profit Center is determined when the procedure is entered or the reminder is set as done. The user sets it and must change it when they want to enter charges under a different profit center.
Because of this, using Profit Centers requires the commitment and dedication of all users to ensure accurate entry.
What are other benefits of using Profit Centers other than seeing revenue for each?
Profit Centers can be used as criteria for commission, cost and price rules, and much more.
Example: Commission may be set to 10% of gross profit under the Profit Center Hospital, but 15% when an item is entered under the Profit Center Training.
If utilizing Credit Allocation, users can also determine amount collected by Profit Center.
Users may also set separate prices for an item based on the Profit Center. If you have questions about Profit Centers, please reach out to your Account Manager or our support team directly at support@wiseoption.com.
Estimated Time to Complete – 5 Minutes
Instructions
Step-by-Step Guidance
Log in to the desktop application.
Tools > Data > Profit Center.
Select one in the list.
Click the green plus button.
Select the appropriate option: Parent, Sibling, Child.
Enter Code and Description.
Save.
If you wish to have this new Profit Center to have the same pricing as the others, you will need to go to Tools > Data > Massive Update Management > Retail Cost & Price Massive Update > Cop Retail Cost/Price
Apply Profit Centers to existing procedures or reminders when creating or editing them.
Change the Profit Center assignment whenever necessary to correctly attribute charges to the appropriate Profit Center.
Encourage all users to commit to accurate Profit Center assignments to maintain data integrity.
Explore various ways Profit Centers can enhance your business operations, such as commission structures, pricing models, and cost analysis.
Monitor revenue generated from each Profit Center to identify areas for improvement and growth opportunities.
Consider implementing Credit Allocation alongside Profit Centers to further analyze financial performance based on collected revenue by Profit Center.
Refer to the Wise Option documentation or contact our support team directly at if you encounter issues during setup or configuration.
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