Chart of Accounts Module
14.3.1 Overview
pc/MRP's chart of account numbers are 8 characters wide. The first four characters are reserved for the base chart of account number such as, 6150 for rent, 1020 for bank checking account. The last four characters are reserved for Division and or Department Numbers. You must first establish a base chart of account numbers containing "0000" in the last four digits of every chart of accounts number for the base company or HQ div. For example your base chart of accounts would consist of 61500000 for rent and 10200000 for your base company or HQ division checking account. pc/MRP comes with a standard chart of accounts entered, however users can also modify the chart of accounts as needed.
Once your base chart of account numbers are established, you must use option 9 in the settings and utilities to edit the default account numbers to match your modified chart of accounts. Furthermore, you can add a new division or department by going to pc/MRP's configuration menu and 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 year-to-date 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.
14.3.2 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 8 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.
14.3.3 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.
|
14.3.4 Print (Display The Chart Of Accounts) Allows you to
printout or display the Chart of Accounts. |
14.3.5 Index (The Chart Of Accounts)
Re-indexes 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, re-indexing the index file is usually the cure. Re-indexing is wise to do after a heavy editing session or after adding many sales orders simply as a precautionary step.
14.3.6 Remove Marked Records
Removes all deleted
chart of account numbers from the disk. The
records will no longer be recoverable.
f Accounts Categories
The chart of account numbers have been divided into five different categories listed below.
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
ET Accounts will be totaled under Income Taxes
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 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.