Navigation:  APPENDIX >

Entering Expense Codes

Previous pageReturn to chapter overviewNext page

 

While writing checks, entering and changing payables, concluding inventory entry and entry of general journal transactions, expense codes and a corresponding dollar amount must be distributed by expense code. These expense codes are used in the Month-End Closing Procedure to calculate cost of goods, operating expenses and liabilities for financial reporting. The following screens allow for entry and distribution of expense codes and their corresponding amounts:

 

 

 

                                       ╔═══════════════════════════════════════╗

                                       ║ Enter the expense code and the portion║

                                       ║ of that expense in the corresponding  ║

                                       ║ Amount entry field. To divide an      ║

EXPENSE CODE   AMOUNT                  ║ expense between other accounts, enter ║

════════════   ═════════               ║ an amount LESS THAN the total and the ║

                    0.00               ║ balance will be transferred to the    ║

──────────     ─────────               ║ next line.  Delete the code and press ║

──────────     ─────────               ║ the down arrow to use no expense code ║

──────────     ─────────               ║ for this transaction                  ║

                                       ╚═══════════════════════════════════════╝

 

 

 

Jewelry Shopkeeper will look up the vendor code to default the first Expense Code. If appropriate, the total dollar amount to be distributed will default to the first Expense Code AMOUNT field. The total dollar amount to be distributed must equal the total dollar amount of the transaction you are completing.

 

If the expense code is unknown, leave the EXPENSE CODE field blank and press <Enter>. A pick-list of the existing expense codes will appear.

 

 

 

╔═══════════════════════════════════════════╗

║ MORE ↑ , press <┘                         ║

║ 603         Delivery Charges              ║

║ 604         Collection Expense            ║

║ 605         Bad Debt Expense              ║

║ 606         Cash Over & Short             ║

║ 607         Bonuses                       ║

║ 608         Outside Jewelry Repairs       ║

║ 609         Jewelry Manufacturing         ║

║ MORE ↓, press <┘ (<Enter>)                ║

╚═══════════════════════════════════════════╝

 

 

 

Expense codes between 100 and 199 are reserved for Asset accounts, 200-299 for Liability accounts, 300-399 for Equity accounts, 400-499 for Revenue accounts, 500-599 for Cost of Goods accounts and 600-999 for Operating Expense codes. If an appropriate expense code can’t be found, press <Esc>. Using the above guidelines, decide what expense code number you want to assign the new expense code and type the number in the EXPENSE CODE field:

 

 

 

 That account number was not found. Do you want to add it? Yes No  <Esc>=Quit

 

 

 

Choose <Y> to add the new expense account number and type the new account number when the following screen is presented:

 

 

 

ACCOUNT NO: 99999       DESC:                        

 

 

 

Once an account code has been chosen, the corresponding amount must be entered in the AMOUNT field. In some instances, the amount in the first amount field equals the total transaction amount and no further breakdown or distribution is necessary. The sum total of all amounts must equal the transaction amount. If the amount entered for the first expense code is less or more than the total transaction amount, the Jewelry Shopkeeper calculates a remainder amount and defaults that total in the second AMOUNT field. The remainder balance is also displayed to the right of the AMOUNT field for reference in case you decide distribute the amounts further.

 

The cursor arrows (↑,↓) allow you to move between expense codes for editing.

 

Jewelry Shopkeeper will remain in the account/expense code distribution screen until the sum total of all amounts equals the transaction amount.