Standard Account Codes

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Standard Account Codes are extremely important in your system. These are various account codes that the system uses to automatically post entries into General Ledger. These accounts will be assigned during the implementation set up.

Standard Account Codes are known as control accounts. A control account is defined as “A total account inserted in a ledger (or section of accounts) to make it self-balancing”. These are specific account codes that the RFMS system needs as default account codes while performing certain functions. Manual entries are generally not made to these accounts. All these accounts may not be used, but these are included in the standard for those who do. All of these accounts must be defined whether they are currently being used or not. These accounts may not be made inactive.

1. Click the square button (ellipsis) located at the end of each field to enter appropriate account codes.
2. The Chart of Accounts screen will appear.
3. Highlight the appropriate account code and double-click to select it or click the Select button located at the top of the Chart of Accounts screen.
4. Continue adding Standard Account Codes until the screen is completed.
5. When finished entering your standard account codes, click the done button.

  Note: Once an account is assigned through Standard Account Codes it should not be posted to through any other component unless specifically directed by a knowledgeable party.

Field	Type	Explanation
Accounts Receivable	Current Asset	Applies to all sales that have been delivered. The system will use this default number to post to General Ledger. A sale becomes a true Accounts Receivable when it has been run through the Job costing routine. This account must be within Current Asset sequence.
Inventory	Current Asset	Applies to all inventory entered through the 'Add Roll' and 'Add Item' functions when the user posts directly to Accounts Payable from the Inventory module. By the same token, this account number will be used for inventory withdrawn when closing the Journal each month. This is a Current Asset account.
Money Market (Savings)	Current Asset	This is an integrated savings account routine that allows you to automatically transfer money from your check register to your savings register within the system through Bank Transactions, Transfer. The money is automatically posted to this General Ledger account. This is a Current Asset account.
Checking	Current Asset	This is the General Ledger number for your principle checking account. This should be the account used for your Accounts Payable check writing. This is a Current Asset account.
Mill Claims Due		Mill Claims due is debited when job costing a claim in the Claims module.
Accounts Payable	Current Liability	All payables posted to the system are automatically posted to this number. When the payable is entered, it is credited to this account. When checks are printed, this account will be debited. This is a Current Liability account.
Sales Tax Payable		This account reflects the amount of sales tax liability entered during the Journal Close routine. This account is credited with that amount entered in the Journal Close routine. Sales Tax Expense will be debited, which is a required account code and is located within the Income part of the General Ledger. The Sales Tax Payable account needs to be located within Current Accounts Payable.
Federal Withholding		Federal Withholding from Human Resources is updated to this account.
Local Withholding	Current Liability	All local withholding amounts in payroll, such as a city income tax, will be credited to this account. This is a Current Liability account.
Misc. Payroll W/H	Current Liability	All miscellaneous payroll withholdings will be credited to this account. This is a Current Liability account.
Customer Deposits	Current Liability	Any payments posted to an order that has not been job costed will be charged to this account. When a customer order is job costed, any deposits will be charged to the Accounts Receivable account. This is a current liability account.
Sales		When invoices are job costed, this account code is credited with the entire amount of the invoice. The system automatically charges the invoice total, including the sales tax amount, to this account. This is an Income account
Discounts To Customers		The account code entered here will serve as the default code in discounting off a balance from any invoice. The amount will be debited to this account. This is typically a contra Income account. When posting a discount, the account code may be manually changed to an account other than the default code entered here.
Sales Tax Payable		This account reflects the amount of sales tax liability entered during the Journal Close routine. This account is credited with that amount entered in the Journal Close routine. Sales Tax Expense will be debited, which is a required account code and is located within the Income part of the General Ledger. The Sales Tax Payable account needs to be located within Current Accounts Payable.
Cost of Materials		All inventory withdrawn during a given accounting period will be debited to this account. The corresponding credit will be charged to Inventory. This is an accumulated total for all inventory withdrawn.
Freight		These charges are accrued on a monthly basis and are the exact amount charged by suppliers and freight companies via the inventory costing module. Any freight on inventory payable entered via the Add Inventory routines will default to this account code. This is a Cost of Sales account. Freight FACTORS are not charged to the General Ledger
Earned Discounts		All cash discounts that are taken on Accounts Payable invoices are posted to this account. Since most of these reflect a reduction of Inventory cost, this is defined by GAAP as a Cost of Sales account. It will be a credit entry, thus reducing overall cost of sales. This entry is automatically posted when checks are written via the Check Writing routine.
Insurance	Expense	Basic insurance expenses withheld at payroll will be booked to this account. This is an Expense account.
Payroll Taxes		The employer's payroll tax expense posts to this account. This typically includes FICA and FUTA responsibilities as well as any other state and local unemployment taxes the employer must contribute. This is an Expense account. The employer's portion of tax expense is not booked at the time of payroll. This is a manual entry, either by journal entry or by posting the check when taxes are paid.
Interest Income		This is used by the Money Market routine so that interest posted to the savings account it represents posted as a debit to that savings account and a credit to this miscellaneous account. This is a Miscellaneous Income account.
Finance Charges		In the finance charge routine, finance charges are posted to delinquent Accounts Receivables, and the system will automatically debit Accounts Receivables with the amount posted and credit this account with the same amount. This is a Miscellaneous Income account
Claims In Process		This account is credited with the total claim amount when a claim is job costed. It is also debited when a payment is posted on an existing claim.
Cost Of Claims		This account is debited for the total inventory value when a claim is job costed. It is also credited when a supplier invoice is posted.

Additional Standard Account Codes for ERRM 

Account Code	Account Code Type	Function	Offsetting Entry
Cash/Checking
Receipts not Deposited	Current Asset	Receipt Posted Deposit not entered	Customer Deposit/AR
A/R
A/R Unbooked	Current Asset	Book the order	A/R
Inventory
Inventory in Uncosted	Current Asset	Material received. Invoice has not been processed from the vendor.	Accrued Inventory
Work in Process Material	Current Asset	Material on job site	Inventory / Cost of Material
Work in Process % Billing Material	Current Asset	Material projected on to be on job site	Cost of Material % Billing
Work in Process Labor	Current Asset	Providers earnings have been entered on the order	Accrued Labor / Cost of Labor
Acc. % Billing Labor (Work in Process % Billing Labor)	Current Asset	Labor projected to have been used on the job but not yet entered in Providers
Accruals
Accrued Inventory for Costing	Current Liability	Material received. Invoice has not been processed from the vendor.	Inventory in Uncosted
Accrued Labor	Current Liability	Providers Earnings have been entered on the order	Work in Process Labor
Cost of Labor	Cost of Goods Sold	Book Order	Work in Process Labor
Cost of Labor % Billing	Cost of Goods Sold	Labor projected to have been used for a job	Accrued % Billing Labor
Cost of Material	Cost of Goods Sold	Book/Job Cost order	Work in Process Material
Cost of Material % Billing	Cost of Goods Sold	Job Cost order	Work in Process % Billing Labor

Inter-Store Transfer

This account code is not utilized by the software