pc/MRP MANUAL CHAPTER 14.6 03/20/98

14.6.1

CHART OF ACCOUNTS MODULE

14.6.1 Overview/Implement pc/MRP's Chart Of Accounts

Once your base chart of account numbers are established, you can add a new division or department by going to pc/MRP's configuration menu, selecting option 9, "Create new accounting template for another division or department". For example if you wanted to add a new division/dept set of chart of accounts for a new division you would enter 0100. pc/MRP would automatically create additional chart account numbers and template for division 0100. If you wanted pc/MRP to print out ytd expense and revenue reports for a dept in that division, you would select option 9 again and enter 0110. This would create a department 10 for division 01. As you can see pc/MRP has reserved the 5th and 6th characters for divisions and the 7th and 8th characters for departments.

14.6.2 New (Enter A New Chart Of Accounts)

Allows you to enter a new Chart of Accounts Number into the chart of Accounts Database File. pc/MRP will allow you to enter any eight digit number as long as it is not a duplicate of an existing account number. pc/MRP will allow you to enter any description into the 21 character Description Field. Next you will be asked to enter either Y or N if it is Tax Deductible. Enter either D or C in the Debit/Credit Field Number depending on if it is a debit or credit transaction. You must enter the correct Account Type Code as pc/MRP uses this field to locate and process the data rather than the account number or description, see the following page for details. The final screen displays the starting and ending balance figures for all thirteen periods.

Editing or adding chart of account numbers is not recommended unless you fully understand accounting and how pc/MRP operates with the chart of account numbers.

pc/MRP versions 6.49 AR and lower use a 4 digit chart of accounts number. pc/MRP versions 6.49 AS and higher use an 8-digit chart of accounts number.. With 6.49 AS and higher the last 4 digits of the chart of accounts are reserved for the division or department (the parent division or department division defaults to 0000). New division chart of account
numbers can be automatically generated with option 9 in the configuration menu.

14.6.3 Edit/View (A Chart Of Accounts)

Allows you to edit a Chart of Account Number. Editing or adding chart of account numbers is not recommended unless you fully understand accounting and how pc/MRP operates with the chart of account numbers. pc/MRP will not accept any changes made to accounts that have had dollar amounts posted to them.

If you edit one of the base chart of account numbers, such as AR, AP, Checking, etc., you must also go to pc/MRP's configuration menu and make the same change in the chart of accounts template file.

Editing or adding chart of account numbers is not recommended unless you fully understand accounting and how pc/MRP operates with the chart of account numbers.

14.6.4 Print (Display The Chart Of Accounts)

Allows you to printout or display the Chart of Accounts.
pc/MRP's Chart of accounts are further defined as follows:
22100000 PAYROLL TAX F.W.T. = liability, federal withholding tax
22110000 PAYROLL TAX F.I.C.A = liability, federal social security
22120000 PAYROLL TAX F.U.T.A = liability, federal unemployment tax
22130000 PAYROLL TAX S.D.I. = liability, state disability
22140000 PAYROLL TAX S.W.T. = liability, state withholding
22150000 PAYROLL TAX S.U.I. = liability, state unemployment
22160000 PAYROLL TAX E.T.T. = liability, state employment training
29100000 COMPANY TAXES = taxes paid by individual owner
90100000 COMPANY TAX-FEDERAL = taxes paid by corporation

14.6.5 Index (The Chart Of Accounts)

Reindexes the chart of accounts index file. pc/MRP automatically updates its index files under normal operation. However, if you ever get a "record out of range" error message, reindexing the index file is usually the cure. Reindexing is wise to do after a heavy editing session or after adding many sales orders simply as a precautionary step.

14.6.6 Remove Marked Records

Removes all deleted chart of account numbers from the disk. The
records will no longer be recoverable.

14.6.7Chart of Accounts Categories

CATEGORY          EXAMPLES                           NUMBERS  TYPE  DED  D/C
-----------------------------------------------------------------------------
ASSET     +(cash,recvbls,inventory,advances,equip)    1000     Ax    N    D
          -(depreciation, allowance for bad accounts)                     C
LIABILITY +(accounts pay, loans pay, taxes payable)   2000     Lx    N    C
          -(repayment of loan)                                            D
EQUITY    +(stock issued, capital in, ret earnings)   2500     Qx    N    C
          -(capital withdrawal by owner)                                  D
REVENUE   +(interest income, sales)                   3000     Rx    N    C
          -(sales discounts allowed, returned merch)                      D
EXPENSES  +(rent, wages, supplies, taxes)             4000     Ex    Y    D
          -(purchase discounts taken, taxes refund)                       C



Expense accounts are categorized as follows:
     EG Accounts will be totaled under Cost of Goods Sold
     EL Accounts will be totaled under Cost of Labor
     EN Accounts will be totaled under Normal Operating Expenses<
     EW Accounts will be totaled under Write off Expenses
     EO Accounts will be totaled under Other Expenses
     
Revenue Accounts are categorized as follows:
     RN Accounts will be totaled under Revenue
     RO Accounts will be totaled under Other Revenue

Equity Accounts are categorized as follows:
     QN Accounts will be totaled under Equity
     QR Account is reserved for single YTD Retained Earnings

Liability Accounts are categorized as follows:
     LC Accounts will be totaled under Current Liabilities
     LL Accounts will be totaled under Long Term Liabilities

Asset Accounts are categorized as follows:
     AF Accounts will be totaled under Fixed Assets
     AC Accounts will be totaled under Current Assets
     AL Accounts will be totaled under Long Term Assets
     AD Accounts will be totaled under Accum Write Offs

Failure to enter the appropriate Account Type Codes when entering or editing the Chart of Accounts will result in incorrect Income and Balance Statements.