The user can choose to use ledger codes when searching for or selecting accounts for posting accounting data. If ledger codes are not switched on selection is done simply by starting to type and the system will identify any occurrences of the combination of characters entered and you select from that shorter list.
Switching on ledger codes
The use of ledger codes is switched on from the accounting options tab of the organisation profile by ticking the Enable ledger codes box and then SUBMIT.
Control - Organisation Profile - Accounting Options
When ledger codes are being used the user simply starts to type the code and the system will display a matching list that is refined as more of the code is entered.
Ledger codes are a 4 digit structure starting with an initial letter (in some cases two letters) followed by a "." and then the 3 digits that define the full code. The first letter represents a group of account types,for example Income, Expenses, Fixed Assets
Our standard structure is outlined below - you may find this downloadable cheat sheet useful.
- Fixed assets
- F.1xx - Intangible Fixed Assets (goodwill, patents, trade marks, licences etc.)
- F.2xx - Tangible Fixed Assets (Buildings, machinery, equipment etc.
- FG.3xx - Fixed Asset long term investments (Usually being held for more than one year)
- Current Assets that include:
- A.4xx - Debtors (current assets)
- A.5xx - Short term investments and other debtors
- B.000 - Bank accounts
- B.100 - Cash/Undeposited Receipts
- C.000 - Customers
- K.6xx - Stocks
- Liabilities that include:
- S.000 - Suppliers
- L.3xx - Current liabilities
- L.4xx - Payroll Liabilities
- L.5xx - Receipts on behalf of third parties
- L.6xx - VAT
- L.7xx - Short Term Loans
- L.9xx - Long term liabilities
- PV.9xx - Provisions
- I.xxx - Income
- Operational Income accounts covering trading for commercial organisations and SoFA Income for Not-for-profits.
- I.100 - UK Sales
- I.910 - Flat Rate VAT Adjustment
- I.2xx - Sales
- I.920 - Discounts allowed
- I.930 - Reimbursed expenses
- I.2xx - Income from charitable activities (Not-for-Profit organisations)
- I.4xx - Income from donations and legacies (Not-for-Profit organisations)
- I.6xx - Income from other trading activities (Not-for-Profit organisations)
- I.8xx - Investment income (Not-for-Profit organisations)
- IN.1xx - Non-UK Sales
- IO.xxx - Other Income
- Non operational income such as investment income for commercial organisations
- E.xxx - Expense
- Operational expenses
- E.1xx - Administration costs
- EC.1xx - Cost of sales
- ED.1xx - Distribution costs
- E.1xx - Expenditure on charitable activities (Not-for-Profit organisations)
- EF.5xx - Expenditure on raising funds (Not-for-Profit organisations)
- EO.7xx - Other expenditure((Not-for-Profit organisations)
- E.900 - Net gains/(losses) on investments((Not-for-Profit organisations)
- EO.xxx - Other expenses
- Non operational expenses
- Capital and Fund accounts (note not all capital/fund accounts can be directly accessed by users)
- SH.xxx - Certain Shareholders funds accounts for Companies
- FU.xxx - Certain Funds accounts for Not-for-Profit organisations
- M.xxx - Certain Members accounts for LLP organisations
- CP.xxx - Certain Capital accounts for sole-trader organisations
Editing ledger codes
The default ledger codes for the systems' standard accounts may be edited and ledger codes added to custom accounts.
Navigate to the Accounts menu and select any group of accounts. The Accounts are then listed, click the button and amend or add a ledger code as required.
Note to allow for maximum flexibility the user can customise codes and have duplicates if required.