Posting Codes

 


 

Cost Centres
 

The option Cost Centres (nl_cost_centre_maint) allows you to create, amend or delete cost centres.

Cost centres make up the first level of a posting code and are set up separately from account codes. Up to 14 alphanumeric characters make up the cost centre, which can be split into a maximum of four elements, which make up the header and detail levels. They can be held in any currency if you use multi-currency. They must be included within a posting code if the General Ledger is set up as internal multi-company – the first level of the cost centre must be the company code.

Cost centres also provide a detailed level of analysis for reporting purposes and can have their own reporting currency.

The use of cost centres is optional; posting codes can be derived solely from account codes if preferred. The options Posting Code Generation and Cost Centres will not be available if you do not use cost centres.

 
Account Codes

The option Account Codes (nl_account_entry) allows you to create, amend or delete account codes.

The account code elements can be divided into header, sub-header and detail levels. If you:

  • are using cost centres – account codes are created in conjunction with cost centres. You can have up to four elements within an account code consisting of up to 14 alphanumeric characters.
  • are not using cost centres – the account code and the posting code are the same, and posting codes are automatically created when account codes are set up. You can have an account code consisting of up to 16 alphanumeric characters.

If an account code is normally in credit or debit, you can define it as such, at detail level. You can specify whether foreign currency transactions can be revalued for an account code. For example, you may never want to revalue fixed asset accounts.

You can specify whether account codes can be posted to directly, or only indirectly – the indirectly option is particularly useful for control accounts, VAT codes, cost of sales codes, Inventory Control GL Cross Reference accounts etc. to ensure that their balances are correct. You can also use the Direct Posting flag to specify Group Accounts for use in a Dual Ledger environment.

You can also specify whether account codes are posted to in summary or in detail. This is useful when posting transaction batches from sub-ledgers and you are only interested in the total posting of the batch rather than individual transactions. However, the summary posting flag on posting codes will be ignored for all postings that create a document header if your system is set up to use:

Posting Codes

The option Posting Codes (nl_post_code_maint) allows you to amend or delete posting codes.

Combining cost centres with account codes, if you use cost centres, creates posting codes; account codes and posting codes are the same if you do not use cost centres.

Posting codes can be in any currency that has been set up on the system if you use multi-currency. The currency code will already have been specified in its cost centre.

Posting codes can be deleted either individually or by specifying a range for deletion. However, there are many checks and restrictions before the deletion of a posting code can take place.

The following example shows how cost centres and account codes combine to make up a posting code:

Cost Centre Codes
(3-3)
Account Codes
(1-1-3)
Posting Codes
(3-3-1-1-3)
(header level)
CC1
(header level)
1
(header level)
CC1
(detail level)
CC1-AAA
(sub-header level)
1-1
(sub-header level 1)
CC1-AAA
CC1-BBB (detail level)
1-1-001
(sub-header level 2)
CC1-AAA-1
CC1-CCC 1-2 (sub-header level 3)
CC1-AAA-1-1
CC2 1-2-001 (detail level)
CC1-AAA-1-1-001
CC2-AAA   CC1-AAA-1-2-001
CC2-BBB   CC1-BBB-1-1-001
   

You can set posting codes as sales revenue posting codes and assign them a sales VAT code if your system is set up to use Sales VAT Postings. This will mean that multiplying the total sales in a sales revenue account (or group of accounts) for a period by the VAT rate will give the total VAT posted to its equivalent VAT account.

These posting codes will be prohibited from use in Accounts Payable and other non-revenue areas. They will be the only codes that can be used in Accounts Receivable and Sales Order Processing and when they are used the calculation and posting of VAT will be mandatory. If they are used in General Ledger journals VAT will be calculated automatically.

 

Posting Code Generation (nl_posting_code_gen) allows you to create or delete posting codes in batches.

Posting codes can also be generated automatically, provided both the cost centre and account codes are set up to allow it.

Automatic generation of posting codes takes place when a posting code that does not already exist is entered and the transaction is posted.

As for the option Posting Codes (nl_post_code_maint), there are many checks and restrictions before the deletion of a posting code can take place.

 
Chart of Accounts

The Chart of Accounts (nl_chart_of_accounts) allows you to run a report which lists all or a selected number of cost centres, account codes and/or posting codes, in summary or in detail. It includes opening balances and current balances for each code in either the base or the reporting currency. This report would initially be produced after creating all cost centres, account codes and posting codes, but can be produced as often as you wish.

The option Chart of Accounts Renumbering (nl_renumbering) allows you to transfer postings from one range of posting codes to another, the original posting codes are then suspended. The redefinition of old to new can be carried out at posting code element level using wildcards if required.