**Accounting Codes Glossary - Visual Matrix PMS
An accounting code is a distinct marker or tag allocated to particular financial transactions, accounts, or groupings within the system. These markers serve the purpose of organizing and monitoring financial information associated with property management, and they can be tailored to align with the property's unique requirements and accounting procedures.
Visual Matrix includes predefined accounting codes with specific purposes that are fixed and cannot be modified by users, and in some cases, not even by administrators. Any attempts to change these codes may result in unintended disruptions to ledgers and reports. It is of utmost importance to have a clear understanding of these codes, as they are essential for identifying their specific purposes and ensuring accurate financial management within Visual Matrix.
To prevent report discrepancies, users are restricted from creating city ledger type accounting codes. If you need to create a new city ledger code, please reach out to our Client Experience team for assistance.
"7" Codes
Any code beginning with the numeral "7" pertains to the City Ledger type - Advance Deposit Payments. These particular codes remain unmodifiable by the user. Only a VM Admin will be allowed to create a new code.
A user will be able to create a guest ledger "7" code but will not have the ability to modify it.
"8" Codes
Codes commencing with the digit "8" pertains to the City Ledger type - Advance Deposit Refunds. These particular codes remain unmodifiable by the user. Only a VM Admin will be allowed to create a new code.
A user will be able to create a guest ledger "8" code but will not have the ability to modify it.
"9" Codes
Codes that commence with the digit "9" within Visual Matrix are inherently associated with tax-related purposes. Unlike certain locked codes, the number "9" is not restricted from modification. Users have the flexibility to deactivate existing tax codes, generate new ones, and even link a tax code with a different code if needed.
6C - Bal Fwd Trans Credit
A "Bal Fwd Trans Credit" refers to a balance forward transaction credit. It is used when a credit balance from a previous period or statement is carried forward and applied to offset or reduce current or future charges or expenses.
In Visual Matrix, this code is used when a property transfers from one PMS to Visual Matrix and represents a credit entry for guests who had prepaid and now have a credit balance. It acknowledges and carries forward the positive balance from the previous system, ensuring that guests are not overcharged in the transition to a new system. This code interacts directly with the guest ledger balance.
6D - Bal Fwd Trans Debit
A "Bal Fwd Trans Debit" refers to a balance forward transaction debit. It is used when a debit balance from a previous period or statement is carried forward and applied to offset or reduce current or future charges or expenses.
In Visual Matrix, this code is used when a property transfers from one PMS to Visual Matrix and represents a debit entry for guests who owe money. It typically accounts for room charges and other expenses that guests have accumulated in the property old system but have not yet paid. This entry helps maintain accurate accounting records and ensures that outstanding charges are properly transferred to the VM PMS.
6C and 6D play a vital role in ensuring the accurate transfer of guest account balances and financial records during transitions and system changes. Properly handling these codes helps maintain the integrity of the guest ledger balance and prevents accounting discrepancies. We highly recommend to deactivate those codes if you have not used for them.
71 - Adv Dep Bal Fwd
This code is employed to reconcile the Advance Deposit City Ledger. Code 71 is utilized when the property receives an advance deposit and records it in the advance deposit ledger as a credit account.
72 - Adv Dep Control
This code is utilized for harmonizing the Advance Deposit City Ledger. Code 72 comes into play when the client checks in, and the sum is shifted from the advance deposit ledger to the guest ledger as a debit account.
7P - Adv Dep Prepaid
This account operates as a credit account distinct from a payment account. In the context of a prepaid payment, funds are deposited or paid in advance and held in an account for future use. If inadvertently used, it may result in a credit posting to a folio without an accompanying payment. We advise you deactivate this code if you do not have use for it.
7T - Guest Adv Dep Transfer
The 7T code serves as a mechanism employed by Visual Matrix for shifting an Advance Deposit from the Advance Deposit City Ledger Balance to the Guest Folio on the Guest Ledger Balance. It's important to note that this code lacks a voiding option, and any inadvertent use of it could disrupt the balance of the Guest Ledger. The sole method to "remove" a 7T entry is by offsetting it with the posting of its corresponding counterbalance.
D1 - A/R Direct Bill Bal Fwd
The "A/R Direct Bill Bal Fwd" accounting code is used to accurately track and carry forward outstanding balances from previous invoices. This code ensures the maintenance of precise accounts receivable records and streamlines the management of customer credit and payments.
D2 - A/R Direct Bill Pymnt
The "A/R Direct Bill Pymnt" accounting code is employed to record and monitor City Ledgers payments. Its purpose is to uphold precise accounts receivable records, guarantee accurate payment accounting, and simplify the management of customer credit and outstanding balances.
FD - Forfeit Advance Deposit
The "Forfeit Advance Deposit" accounting code is used to offset any Advance Deposit code that is not refunded when a reservation is canceled. Set up as a "Revenue" code, it must be assigned a revenue sub-category. By default, this code is assigned to the "Room" sub-category. If you need to unassign this amount from the Room Revenue, you can change the sub-category. However, a sub-category must be assigned to avoid potential balance discrepancies in other reports.
The sub-category assignment is crucial when you are looking in discrepancies, which is why the total Room Revenue on page 1 and the GL Room Revenue in the Guest Ledger Detail Listing (typically pages 3 to 5) on the Daily Report may differ. The Total Room Revenue on page 1 includes all accounting codes assigned to the "Room" sub-category, whether they are Guest Ledger or City Ledger codes. In contrast, the GL Room Revenue in the Guest Ledger Detail Listing only includes the total for Guest Ledger accounting codes within that sub-category.
GB - Guest Ledger Control
The "Guest Ledger Control" accounting code is dedicated to managing financial transactions linked to guest stays, including room charges, services, and payments. It ensures folio accuracy, aids revenue recognition, and supports guest spending analysis and profitability assessment.
RD - Rate Discount Revenue (Rev)
The "Rate Discount Revenue" code represents every discount applied to room revenue posted, indicating the amount deducted from the original room rate. When a discount code is setup to post "Separately", it will show as a reference of the posting.
TF - Transfer to Folio
This code is to be used with the Point of Sale Interface in Visual Matrix. It will show a transfer of charge from the Point of Sale to a Guest Room Folio. And if used, you will see it in several reports. If you do not use this interface and wish to disable this accounting code to avoid confusion or misuse.
Summary of the ledger balances in terms of accounting codes
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