Code account in accounting

Account code used in an account usually consist of numbers, letters, or a combination of numbers and letter to cue against the previous classification has been made. This code is made for easy identification and differentiation of existing elements in a classification. Management accounting data relies on the use of codes to record, classify, store, and retrieve financial data. The purpose of the granting of the following code in your accounting data processing systems:

1. Identifying data uniquely accounting

Accounting data need to be unique identification to be done recording, classification, storage, and retrieval of data correctly.

2. Identifying data

The code presents the accounting data more compact, so it takes less space in the record

3. Classify accounts or transactions

In the Manage accounting data, the code used to demonstrate what a classification into account or transaction is grouped.

4. Conveying a certain meaning

With this code, we can deliver meaningful information.

The Giving Account Code Number
The giving account code is generally based on the order of granting certain code, making it easier for users in their use. The giving account code does not intend to let users memorize codes account compiled, however for easy usage follows the logic framework granting the account code so you can use the structured account for the grant of identification of transactions that occur within the company. These various methods of administering the account code.

1. Code numbers or the alphabet sort
In the method of administering this code, account ledgers were given code numbers or letters that sequence. The weakness of the code numbers or the alphabet sort is if there is an expansion of the number of the account, this would result in a greater number code. The following sample code numbers sort.

1. Cash and bank
2. Temporary Investments
3. Accounts receivable
4. Accounts receivable losses Reserves
5. Inventory of finished products
6. Product Inventory in the process
7. Supply of raw materials and ingredients of the helper
8. Advance fee
9. Other current assets
10. Long-term investment
11. Land
12. Building
13. Accumulation of depreciation building
14. The machine
15. The accumulated depreciation of machine
16. Furniture
17. Accumulation of depression furniture
18. Fixed assets other
19. Accumulated depreciation of other fixed assets
20. A suspended Load
21. Other Assets
22. Trade Debts
23. Tax Debt
24. Wage and salary Debts
25. Cost of Debt
26. The income which is paid upfront
27. Debt smoothly etc.
28. Long-term bank Debt
29. Share capital
30. Profit on hold
31. Sales revenue
32. Cost of goods sold
33. The cost of raw materials
34. Labor costs
35. Factory overhead costs
36. General and administration fees
37. Marketing costs
38. Income outside the business
39. The cost of outside business
40. Loss of profit

The following characteristics of the giving of the code with code numbers sort.

• Account coded with numeric sort, from small numbers to large numbers.
• Tb. the number of digits (digit) in the code is not the same.
• Expansion of the classification of an account will result in code changes all the account code is greater than the account code underwent an expansion.

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