Setup a New Accounting Code (Cloud) 🎥

Setup a New Accounting Code (Cloud) 🎥

An accounting code is a unique identifier assigned to financial transactions or categories within the system. It helps organize and track financial information related to property management, tailored to the property's specific accounting needs. Accurate creation of these codes is crucial to prevent report discrepancies.
Path: Management > Accounting Settings > Setup Code
Make sure you complete Step 2!

Step 1: Accounting Code Setup

1. Click Add New.

2. Choose the code you want to give to this new item. The code is limited to 4 characters, numbers and/or letters. Do not use code starting with 7, 8, or 9:
- codes starting with 7 are for Advance Deposit Payments.
- codes starting with 8 are for Advance Deposit Refunds.
- codes starting with 9 are tax-related.

3. Choose the Ledger Type, Guest or City:
- Guest Ledger: The guest ledger is the activity within the hotel before and during a guest or group stay.
- City Ledger: The city ledger tracks revenues due to the hotel.

To avoid any City Ledger account creation issue, this choice has been disabled. If a city ledger code is created, it won't be able to save. Please contact our Client Experience team for advice. 

4. Select if the code is a debit or a credit code:
- DB/Debit: Code is a positive number, aka Revenue (like Room Charge Revenue);
- CR/Credit: Code is a negative number, aka Payment (like Cash or Credit Card Payment).

5. Enter a brief description of the code that you will see on reports.

6. Override Description, to allow a user to change the description of the code:
- Select No for payments that users make with an accounting code to maintain the description you entered above.
- Select Yes to allow users to change and put their own description.

7. Select the posting category from the dropdown. There are 5 options: Adv Dep Xfer, Guest Ledger Balance, Payment, Revenue and Paid Out. Only Payment or Revenue should be Categories to used.
Paid Out is to be used for things like petty cash, where a payment is made out of someone’s drawer in cash, so that it will show up on operator cashout. Adv Dep Xfer and Guest Ledger Balance are used by Visual Matrix for transfer balances between Ledgers.

8. Select the sub-category from the dropdown. The options will match the posting category choosen, payment or revenue:
- The Payments sub-categories cannot be changed.
-The Revenues sub-categories can be updated from the Revenue Summary Report.

The next 4 fields are only for Revenue codes. If you are creating a Payment code, go straight to 12.

9. If the item has a fixed rate, you can enter it there.

10. Choose if the item is taxable or not:
- Revenue Tax is Taxes linked to Room Revenue.
- Sales Tax are all other taxes. If Sales tax is selected, choose which sales tax to apply from the "Sales Code" field below.

11. If applicable and used, enter a budget percentage. This percentage will be compared to budgetary numbers. It will also allow you to take last year's figures and offset them by this budgetary percentage to reflect on a report as a comparative number.

12. Select if and who can void the code once posted.

13. Is this code to be used only by someone with Supervisor credentials or anyone:
- Select Supervisor to make the accounting code available only to users that have supervisor privileges.
- Select All to make it available to all users.

14. Check the box to Activate the code.

15. If "Prompt to Quantity" is checked, it will prompt you to choose a quantity of that item when posting.

Step 2: Setting Up G/L and Report Definition

16. If you are using General Ledger Accounts, you will choose which GL account this item will report to.

17. Select which heading transactions made with this accounting code will fall under on the Operator Cash Out Report. This has to be filled for any Credit item, any Method of Payment.

18. Select which heading that transactions made with this accounting code will fall under on the Daily Detail Report. This has to be filled for every item, Revenue, AND Payment. Not choosing a category here will generate a discrepancy in the Daily Report.

19. Click the green floppy disk at the top right to Save the new code.

Essential Components for any Ticket Submissions

What would this code need to do when you post it? 
Is this code going to be used in guest folios? 
What would you like to name the code and description? 
When would you use this code for the property? 
Providing responses to the following questions in your ticket could expedite your resolution.

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