An accounting code is a combination of up to six elements: a general ledger account
The general ledger will normally include general ledger accounts (GLAs) for items such as income, expenses, assets, liabilities, and reserves., a single entity and up to four analysis dimensions Custom objects that allow you to analyze the activity in your business in additional ways, such as by cost center, project, employee, or any other business entity important to you., as recorded on a specific transaction line item.
An entity is one of the required elements The elements of a full accounting code consist of a general ledger account, an entity, and up to four analysis dimensions. of an accounting code. The entity of an accounting code represents one, and only one, of the following elements:
- Account
- Product
- Bank Account
- Tax Code
Example
For example, you might have any of the following accounting codes on a transaction line item:
- GLA + Bank Account (Bank Account Checking + HSBC)
- GLA + Tax Code (Sales Tax + Boston City Tax)
- GLA + Product + Dimension 2 (Sales Parts + Auto Com Clutch Kit 1989 Dodge Raider + North)
- GLA + Account + Dimension 1 + Dimension 2 (Accounts Receivable Control + Hogan Repairs + Chrysler + South)