Open Departments from main menu
Click on New
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Select Office
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Give a name of new Department (if you creating sub department select Parent above.
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Give a required prior and description
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Click on Add button
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Go to Positions Tab
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Click on New Position
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Insert position name
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Select prior and give description
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To complete click on Save Position
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If needed to create another one in same department click on New position and follow from step 5.