Introduction

The Codes Maintenance screen lets you manage all the standard codes used throughout the system including currencies, tax rates, sales regions, inventory locations, and general ledger categories. 

Review these codes as part of the initial company setup process before you start any data entry or run any functions like Bank Reconciliation. You can still make updates later if needed. Most Codes are optional, but to gain maximum reporting and analysis benefits, you should use all of those associated with master records.

Once finished, you can set up your Customer Master Records‍, Supplier Master Records‍, and Items‍.

Accessing Codes Maintenance

To access codes, go to Setup > Codes Maintenance in the blue banner.

Code Naming Conventions

Usually, codes will be four numbers or longer, but they can also be alphanumeric. Make your codes meaningful and memorable. For your Customer and Supplier (Vendor) codes, use their short name. An example of this would be, entering a Customer Code, such as ‘ALCHEM’ or ‘ALLIEDC’ for 'Allied Chemicals'. Using ‘A000001’ or ‘AC00001’ is not recommended as there will eventually be too many ‘A’s’ and too many ‘ACs’ to search.

You can use the code as a shortcut by entering the first few characters in a field, followed by the Tab or Enter key, to auto-complete the field.

See:

  Company details and settings (2.1) - AIQ Academy

Managing Company Details & Settings‍ 

Customer and Supplier Codes

Customer and Supplier (Vendor) Codes let you categorise your Customers and Suppliers (Vendors) for reporting and analysis purposes.

The following categories are detailed below:

• Area Codes
• Credit Terms Codes
• Customer Groups
• Customer Referrals
• Delivery Routes
• Payment Methods
• Price Categories
• Priority Codes
• Regions
• Requesters
• Ship Via
• Supplier Groups

Area Codes

Area Codes are used on both Customer and Supplier (Vendor) records to classify them according to their primary location, for example, to produce Sales Analysis by Area. 

To add a new Area Code and Description:

1. Under Customers & Suppliers, select Areas.
2. Click Add New Area. This opens the Add Area screen.
   
   
    
3. Complete all fields and click Save.
   
   

To edit Area list entries:

1. Click Edit beside each code.
2. Make any needed changes and click Save.
    

Credit Terms Codes

Credit Terms Codes are used on both Customer and Supplier (Vendor) Master Records. 

Complete the following:

• Credit Days: This specifies the number of Credit Days that a particular Supplier (Vendor) allows before payment becomes overdue, or in the case of Customers, the number of Credit Days you are extending to different customers before the Invoice becomes overdue. 
• End of Month: This indicates that the count of Credit Days begins immediately after the Invoice Date or, alternatively, commences on the first day of the following calendar month.

Customer Groups

Customer Groups allow you to categorize your Customers for Sales Analysis Reporting.
 

Customer Referrals

Customer Referrals allow you to record, for marketing purposes, the source by which you acquired this customer. However, if you have no use for this code, then you can use it for a different purpose.
 

Delivery Routes

The Delivery Routes field on each Customer Master Record uses a default route listed here.
 

Payment Methods

Payment Methods tells the Supplier (Vendor) Payment run how to pay. A Payment Method is mandatory during Customer and Supplier (Vendor) setup and during transaction entry.

Use this option to set up Payment Methods that will be used for the payment of Invoices, for example, cheques, credit cards, debit cards, online payments, or electronic funds transfers (EFT). 
 

Price Categories

Each Product/Inventory Master Record can accommodate up to eight different Sale Prices with Descriptions allocated to each. The Prices themselves will be on each individual Product/Inventory Master Record. You cannot add more than eight categories, only edit the Descriptions of the existing ones which come with the system. 
 

To rename a price category, click Edit, make the relevant changes, and click Save.
 

To associate Price Categories with Customers:

Open the Customer Master Record‍, go to the Finance Settings tab, and complete the Price Category field:
 

These price categories are also associated with items. Open an Item Master Record and go to the pricing tab to view or set the price categories. 

Priority Codes

Priority Codes allow you to assign priorities to your important Customers and Suppliers (Vendors) for the fulfillment of orders or shipments.

Regions

Regions allow you to classify Customers according to Regions in addition to Areas:
 

Requesters

The Purchasing System uses Requesters, also known as “Requisitioners”, to nominate persons, via email, in the organisation who can place Orders for Goods (which need approval) and receive the goods when delivered:
 

Ship Via

Customer and Supplier (Vendor) Master Records both use Ship Via to indicate a preferred transport method:
 

Supplier Groups

Supplier (Vendor) Group codes are used in the Supplier (Vendor) Master Record to classify Suppliers (Vendors) into various groups:
 

You can associate the Supplier (Vendor) group with a Supplier (Vendor) in the Supplier (Vendor) Master Record. Go to the Account Settings tab and complete the Account Group field. 
 

Items Codes

Item Codes assist in Inventory Management. Each Product or Service is identifiable by an Item Code which can be alpha-numeric, uppercase, lowercase, or numeric. They are used during Sales Order Processing, Purchase Order Processing, and Stock Take/Inventory Check, and for Sales Analysis purposes.

Items can be Products or Services and either:

• Stock: These will use the full features of the Inventory Management system.
• Non-Stock: These will only use the Pricing and Costing parts of the Inventory Management system. 

Item Groups

Item Groups classify Items into major categories. You can then use these for Sales Analyses by Product Group and Sales Rep Commission Calculations.
 

Item Locations

These designate the main areas (physical locations) where Items are stored.
 

Tick On Hand to maintain Items stored in this location.
 

Item Sub-Groups

You can subdivide the main Item Groups into sub-groups for Analysis purposes, as in this example where the Item Group COM has individual sub-groups.
 

The Item Code itself will identify the Product in full, such as “Microsoft 4 Surface Laptop, 17”, 360Gigabytes, Black.
 

Item Sub-Locations

Item Sub-Locations are specific locations in your warehouses and storage when items are located for subsequent selection and despatch (or for receipting).

 

General Ledger Codes: Categories, Sub-Categories, and Groups

Removing Unnecessary Codes

Your Company comes with a pre-packaged standard set of General Ledger Codes that most users find meets their business needs. However, you have the option to:

• Choose your own GL coding system.
• Use the Default Coding System, but add or remove codes, and change their Descriptions.

We strongly recommend that you review these Codes, remove unnecessary Codes, and add other Codes where needed. Streamlining your codes will make them much easier to manage. If your needs change, you can easily add Codes back later. 

See:

How do I Setup and Maintain General Ledger and Analysis Budgets?‍ 

The General Ledger Code Hierarchy

There is a hierarchy in the General Ledger Code structure. Every General Ledger Code has a General Ledger Sub-Category, that in turn has a General Ledger Category. When using GL Codes there is no need to also quote its Category or Sub-Category. You can change a GL Codes Category or Sub-Category at any time. GL Codes are the lowest level of reporting, but you can drill down to the transaction level detail. 

To view the entire hierarchy, run a Chart of Accounts Layout Report. The structure of the General Ledger Coding system impacts the layout and completeness of your Income and Expenditure Statements, Trial Balance, Balance Sheet, and other financial reports. 

GL Categories represent the major headings in your reports, such as:

• Income
• Revenue
• Direct Costs
• Overhead Costs
• Expenses

GL Sub-Categories represent the sub-headings of the GL Categories, such as:

• Home Sales, Exports, or Spares within the Income GL Category.
• Rent & Rates, Computer Costs, or Finance Costs within the Overhead Costs GL Category. 

General Ledger Categories

You are supplied with 11 General Ledger Categories, numbered 1 to 11 as Alphabetic Codes, which you cannot change or delete. However, you can edit them, change their meaning, and add to them.
 

To add new GL Categories:

1. Click Add New Category.
2. Add the following:
   • Category Type:  This determines whether the connected General Ledger Codes should appear in Revenue or Assets reports.
   • Code: This determines a General Ledger Category’s place in the Chart of Accounts. The General Ledger Categories will appear in ascending numerical order in the Chart of Accounts starting with the number 1. 
   • Description.
   • Click Save.
      

Editing GL Categories

1. Click Edit beside the relevant Category. 
2. You can edit any of the fields. You can change a Sort Order Code or add a new General Ledger Category with a new Sort Order Code. Then when you select Re-sort sort order and save, the sequence will be re-ordered. In the example below, “Operating Income” will be the first line of your Profit & Loss Reports followed by “Cost of Sales” and “Direct Costs”:
   
   
    
3. Click Save.

GL Sub-Categories

As with General Ledger Categories, the system comes equipped with a standard set of General Ledger Sub-Categories which you can add to or edit. 
 

Each also has a Profit & Loss Sort Order Code that determines their order within a General Ledger Category. 
 

Maintenance is like that of General Ledger Categories (see above) with the ability to re-sequence the Report or Chart of Accounts using the Sort Order Codes. 
 

Selecting Non-Cash Item will exclude all General Ledger Codes with that General Ledger Sub-Category as a parent from Cash Forecasting.
 

See:

Changing a Report layout‍ 

General Ledger Groups

General Ledger Groups are used to group General Ledger Codes. They are optional and do not feature in the hierarchy of the General Ledger Coding Structure. They let you enquire and report on General Ledger Codes from Revenue, Cost Accounts, or Balance Sheet Accounts collections. 

For example:

• P & L Accounts: You could group all Income into Recurring Revenue or Non-recurring Revenue. 
• Costs: You could group all Insurance costs, Legal Costs, or Facility Costs.
• Balance Sheet Accounts: You could group Prepayments, Deferred Revenue Accounts, Revenue Accruals, Cost Accruals, Banks, or Tax.

You can use groups to refine Enquiries and Reports by adding a GL Group column to any of the listing grids:
 

General Ledger Codes: Currencies

You can use multiple currencies against a single Base Currency but can only have one Base Currency. 
 

Rates of Exchange are set up and maintained in Currency Codes. They are expressed as 1 Unit of Base Currency = X Units of Foreign Currency. In periods of high Exchange Rate Volatility, revise and update Currency Rates frequently for an accurate Trading and Balance Sheet.

See:

Managing Multiple Currencies‍ 

To Add New Currencies:

1. Click Add New Currency. 
2. In the Code dropdown, select the Currency required. The dropdown here contains all the Currencies listed under ISO 4217 along with standardised Mnemonics (e.g., "GBP" instead of "STG").
3. Description, Units, and Symbols will autofill with the connected data but can be edited as needed.
   • Enter the Description associated with the relevant ISO currency code. This is displayed on various system screens and reports where relevant. The description will be defaulted to the ISO currency code name but can be overwritten by the user if necessary.
   • Enter the Units associated with this currency code, e.g. Pence, Cents etc. This will be displayed on items like cheque layouts.
   • The currency Symbol will be displayed on screens, reports, printed orders and invoices.
4. Tick Base to nominate the currency as a Base Currency. There can only be one Base Currency in the system. This setting cannot be changed without assistance from your local support team. Non base currency customers and suppliers can be set up and dealt with in their own currency. When transactions are raised against these 'foreign currency' customers or suppliers, they are raised using the currency of that customer or supplier and the transaction also carries the exchange rate in force at the time, along with the equivalent calculated base currency amount.
5. Manually enter the Rate or update it from TransferMate. The exchange rate will be the default exchange rate when entering transactions that involve foreign customers, suppliers or bank accounts. Exchange Rates must be recorded as 1 Unit of Base Currency = X Units of Foreign Currency and not the inverse.The exchange rate for the base currency will always be 1. In periods of high exchange rate volatility, exchange rates will be revised and updated frequently in order to provide the most accurate reflection of your Trading and Balance Sheet. 
6. Click Save.

To Edit Currencies:

1. Amend an existing Currency by clicking Edit next to its entry in the table.
2. Complete your edits.
3. Click Save.
    

To Maintain the Exchange Rate:

You can maintain Exchange Rates manually or use TransferMate.

You can update Exchange Rates:

• Individually: Click Update next to the relevant entry. Use this if Exchange Rates are fixed because of Forward Contracts. 
• In Bulk: Click Update All Rates. At the close of each day, the system pulls exchange rates from TransferMate.
  
  

To View Exchange Rate History:

Click View Rate History
 

General Ledger Codes: System Accounts

System Accounts are a type of General Ledger Account solely used to create General Ledger Journals‍ and for reporting purposes. They are created as part of the company setup‍ by assigned a GL Code from the Chart of Accounts listing as a system account. You can create more system accounts as needed,

 The following system accountsare created during setup:

• 2 Foreign Currency Gain & Loss accounts
• 2 Stock (item) accounts: 
  • Balance Sheet 
  • P&L
• Accruals
• Bank Charges
• Discounts Allowed
• Discounts Received
• Minority Interests
• Prepayments
• Purchase Tax (Control)
• Retained Earnings (Control)
• Sales and Purchase Discount 
• Sales Tax (Control)
• Tax Liability
• Trade Creditors Control (Control)
• Trade Debtors Control (Control) 

System accounts have an account type:

• Cost Accrual
• Revenue Accrual
• Prepayment
• Deferred Revenue
• Intercompany Recharges

These system accounts will store the accrual for the period in which they are posted and then reverse the transaction on the first day of the next period. Once these system accrual accounts are created, they will be available for selection within the system's Cost Accrual and Revenue Accrual Journal entry screens. 

Setting up System Accounts:

If there is no appropriate existing GL account, you must create one. See Managing General Ledger Accounts.‍ 

1. Go to Setup > Codes Maintenance > System Accounts.
2. Click Add New System Account.
3. In the Account Type field, select the relevant option. You cannot change this Account type, but you can change its Code. For example, if you are using a different Chart of Accounts from the default one, you can use your own Codes to identify these System Accounts.
4. Enter the Linked GL Account you created previously. It is possible to edit the link only while there are no transactions within that GL account. If there are pre-existing journals or if has been used subsequently then it will not be possible to change the link.
5. Click Save. The linked GL Account is now a System Account.
   
   

Control Accounts

Control Accounts are a set of General Ledger Accounts set aside solely for use by the system, for example, the Debtors & Creditors Control Accounts, Purchases and Sales Tax Accounts, and Currency Gains & Losses. These will be created during system setup and if you use the Chart of Accounts Data Importer.‍ 

The system identifies them by their 'Account Type' below, which you cannot change in most cases. Control Accounts Types are as follows:

• Trade Creditors Control which links to Accounts Payable Control Account
• Intercompany Creditors Control account which links to Intercompany Payables Control Account
• Trade Debtors which links to Accounts Receivable Control account
• Intercompany Debtors Control which links to Accounts Receivable Intercompany Control account 

You can create more control accounts as fits your needs. For example, you may want to segregate your Debtors and/or Creditors into groups with different Control Accounts on the Customer and Supplier (Vendor) Master Records. 

It is not possible to:

• Change a Control Account after nominating it.
• Post a GL Journal into a Control Account, VAT on Purchases Account, or VAT on Sales Account. 
• Post any transactions into the Retained Earnings Control Account. 

Instead use Sales or Purchases Journal entry screens to post an adjustment against a Customer or Supplier Account, which in turn will adjust the Control Account balance.

To set up Control Accounts:

If there is no appropriate existing GL account to nominate, you must create one. See Managing General Ledger Accounts.‍ The 'Type' for these GL accounts must be 'Control'.

1. Go to Setup > Codes Maintenance > System Accounts.
2. Click Add New Control Account.
3. In the Account Type field, select the relevant option.
4. Select the Linked GL Account you created previously.
5. Click Save. The linked GL Account is now a Control Account.
   
   

General Ledger Codes: Tax Codes

The System facilitates the recording of VAT (Tax) related data and all required statutory reporting, and supporting information, regarding current VAT (Tax) legislation. Recording and reporting of VAT (Tax) can be on either the “Invoice” basis or the “Cash” basis according to the rules in force at the time.

Default Tax Codes

A default table of Tax Codes, Tax Rates, and associated Rules comes with your new Company. Review these in detail as the ultimate responsibility for the accuracy of your VAT (Tax) Returns lies with you.

Default Tax Codes are allocated to:

• Inventory Products: Go to Items > Services/Non-Stock Items or Product Items to view or edit the default Tax Code in the Defaults tab.
• Customers: Go to Sales > Customers to view or edit the default Tax Code in the Finance Settings tab.
• Suppliers (Vendors): Go to Purchases > Suppliers to view or edit the default Tax Code in the Finance Settings tab.

You can override any of these Tax Code defaults at transaction entry.

Add Tax Codes

1. Click Add New Tax to open the Edit Tax screen.
   
   
   
   
    
2. Complete the following:
   • Tax Code: This will be displayed on invoices. This is the unique code for each Tax (VAT) rate you set up. It should be alpha-numeric and up to 10 characters long. You cannot change a tax code once set up.
   • Description: Enter a meaningful description to identify codes during transaction entry and on reports. You cannot deactivate a tax code, but you can change its description to show it is no longer in use.
   • Rate:  Enter a rate to calculate the VAT amount on transactions that use this VAT Code. The Rate will be applied to your Sales transactions or will have been applied to your Purchase transactions. 
   • Withholding: Tick to treat this tax code as a withholding rate for purchases.
     • For Purchase Transactions, the withholding tax amount will be calculated and posted to the nominated Withholding Tax GL Code, but the invoice will not appear in the VAT return screen. 
     • For Sales Transactions, the withholding tax amount will be calculated from the net amount and credited to the nominated Withholding Tax GL Code and will not appear in the VAT return screen.
   • Withholding GL Account: Select the GL account to which to post the Withholding Tax. The Withholding tax amount will not be posted against the VAT on Purchases GL Code.
   • Standard Tax Rate: Tick to treat this tax code as the standard rate for Cash Receipts based tax reporting. The standard rate is used to calculate reverse charges and the VAT on transactions when using Cash Based Accounting. You can only flag one tax code as standard.
   • Exclude: Tick to exclude the VAT Rate from appearing in the VAT Return.
   • EU Trade and Reverse Charge: If you submit Irish VAT returns, tick to treat this tax code as EU trade  (to include sales figures on EC Sales reports) and to apply reverse charges for purchase transactions. Sales figures will be included in the Sales of goods/services totals on the VAT return and on the Summary of EU Sales report. Reverse charges will be applied to Purchase Transactions at the standard rate for the company. Do not tick if you submit UK VAT returns. The Rate should be 0% so the tax amount will then be calculated at the standard rate for the company. 
   • Reverse Charge/PVA: Use this option to invoke reverse charges or postponed VAT accounting. If you submit UK VAT Returns, tick this flag to apply reverse charge or postponed VAT accounting for acquisitions from any country inside or outside the EU. If you submit Irish VAT Returns, tick this flag to apply reverse charge or postponed VAT accounting for imports from countries outside the EU (including GB). Reverse charges/PVA will be applied to Purchase Transactions at the standard rate for the company.
   • Partial Reclaimable: Check this flag to mark this tax code as being subject to Partial Reclaim. This is to be used in cases where your company has VAT taxable and VAT exempt trading activities and can only recover part of the VAT on purchases that relate to general overheads. 
     • If a tax code flagged for Partial Reclaim is used on a Purchase Invoice, the invoice postings will be changed based on what is reclaimable. For example, if an invoice has been created with a net value of 100EUR and a tax rate of 23% with a 10% partially reclaimable rates, the invoice will be posted with an increased net of 120.70, a reclaimable tax of 2.30 and a gross value of 123.00.
     • The reclaimable tax will appear in the VAT return under Purchases for reclaim and the exempt portion of the VAT will be added to the relevant cost category. The relevance will be determined when GL Code is selected in the purchase invoice.
     • This will be posted as part of the Net line and as such the posting will not match the invoice received from the supplier.
   • Partial Reclaim Rate (%): Enter the percentage of Partial Reclaim that is applicable. This must be from 0-100% and can contain decimals.This will be used to calculate the portion of VAT that cannot be reclaimed and will not be included in the VAT Return.
   • Goods: Select to associate the Tax code with selling/ purchasing goods. This will be reflected in your VAT return reporting in Boxes E1 and E2, which detail goods to and from other EU countries.
   • Services: Select if you need the Tax code to be associated with selling/ purchasing services. This will be reflected in your VAT return reporting in Boxes ES1 and ES2 which detail services to and from other EU countries.

Edit and Delete Tax Codes

You can only delete Tax Codes if they have not been used. Click Delete for the relevant code.

• This will not affect historical data, such as transactions posted against Customer, Supplier, and GL Accounts.
• This will affect tax reports as it will update information against Invoices that were posted with the old VAT rate. 

Nominate a Control Account Tax Code

To nominate VAT (Tax) General Ledger Control Account Codes, go to Setup > Codes Maintenance > General > System Accounts.

The relevant Sales and Purchase Codes may already exist due to the Company Template used at setup.

To amend any of the General Ledger Accounts, click Edit next to the relevant example.
 

Update Tax Codes in Bulk

You can automatically update all the default Tax Codes assigned to your Customer, Supplier, and Item Master Records. 

 

1. Go to Setup > Codes Maintenance > Taxes > Add New Tax.
   
   
    
2. Click Add New Tax, assign a new tax rate, and click Save.
3. Click Tax Codes Bulk Update Tool. 
4. In the Existing Tax Code field, select the existing default rate, and in New Tax Code add the relevant code.
   
   
    
5. Click Process. This will update all your Customers, Suppliers (Vendors), and Items from the old rate to the new rate.

 Integrations via the API

If you integrate with other systems via the API, make sure that any changes to tax codes are also applied here. In some cases, the API will use customer, supplier, or item defaults, but tax codes may be hardcoded and so will need to be updated manually. 

There is no way to bulk update tax rates on incorrectly posted transactions, so you should always check how tax code settings have been applied to integrations with your developers when you add any new tax codes.

See:

Managing VAT (UK & Ireland)‍ 

@pa