Chart of Accounts Module

You are looking at an old Manual of pc/MRP,
the Complete MRP Inventory/Accounting Package.

Please click below for
the latest pc/MRP Manual

Please click below to
reach the pc/MRP Main Page

Manual Logo

Main Page Logo

 


14.3.1 Overview

pc/MRP comes with a standard set of chart of account numbers such as 6250000 for Utilities, 1030000 for Savings Account, etc.    The first four characters are reserved for the base account number and the last four characters are reserved for division and department number.   pc/MRP has reserved the 5th and 6th characters of the account number for divisions and the 7th and 8th characters of the account number for departments.   For example 62500100 could represent Utilities Expense for Division 01 or 62500105 could represent Utilities for Division 01 Department 05.  You can use the standard set of chart of account numbers as is.   Or, you can add, delete, and modify the standard set of chart of account numbers as described below.


14.3.2 Establish a base chart of accounts structure on paper

First establish a base chart of accounts structure on paper.   Base accounts must end in “0000” and do not report to a parent account.   An example of a base chart of account structure is listed below:

 

Assets

      1020-0000 Checking

      1070-0000 Accounts Receivable

Liabilities

      2010-0000 Loan

      2070-0000 Accounts Payable

Equities

      3040-0000 Retained Earnings

Revenue

      4040-0000 Sales Income

Expenses

      5000-0000 Utilities

 

 

14.3.3 Establish a set of sub-chart of account numbers on paper

 

pc/MRP Versions 8.04e and higher allow you create sub-chart of account numbers that report to and roll up into a parent chart of account numbers.  There are two types of sub accounts, category and divisional.  

 

Category Sub Accounts should always end in 0000.   An example chart of accounts using category sub-accounts is listed below:

 

Assets

      1020-0000 Checking

            1021-0000 Wells Fargo Checking

            1022-0000 Bank of America Checking

      1070-0000 Accounts Receivable

Liabilities

      2010-0000 Loan

      2070-0000 Accounts Payable

Equities

      3040-0000 Retained Earnings

Revenue

      4040-0000 Sales Income

Expenses

      5000-0000 Utilities

5040-0000 Water

            5050-0000 Electricity

 

 

Division Sub Account should always end in a 4 digit number other than “0000”.   This allows pc/MRP to filter these accounts into Divisional YTD Expense and Revenue Reports.  An example chart of accounts using category sub-accounts is listed below:

 


Assets

      1020-0000 Checking

            1020-0100 Checking Division 1  

            1020-0200 Checking Division 2  

      1070-0000 Accounts Receivable

Liabilities

      2010-0000 Loan

      2070-0000 Accounts Payable

Equities

      3040-0000 Retained Earnings

Revenue

      4040-0000 Sales Income

            4040-0100 Sales Income Division 1

            4040-0200 Sales Income Division 2

Expenses

      5000-0000 Utilities

5000-0100 Utilities Division 1

            5000-0200 Utilities Division 2

 

Gets filtered into a YTD Expense and Revenue Financial Statement for Division 1

 

Including both Divisional and Category Sub Accounts in your chart of accounts can be done two ways.   The first way would be to create sub accounts by division and then category.   This structure will show the rolled up Utilities Cost for the Divisional YTD Expense and Revenue Report: 

 

Expenses

      5000-0000 Utilities

5000-0100 Utilities Division 1 (Will be displayed on the Div1 YTD Exp and Rev Report)

                  5040-0100 Water Div 1

                  5050-0100 Electricity Div 1

5000-0200 Utilities Division 2      

                  5040-0200 Water Div 2

                  5050-0200 Electricity Div 2

 

Gets filtered into a YTD Expense and Revenue Financial Statement for Division 1

 

The second way would be to create sub accounts by category and then division.   This structure will not display the rolled up Utility Cost for the Division on the Divisional YTD Expense and Revenue Report.

 

Expenses

      5000-0000 Utilities

5040-0000 Water                    

                  5040-0100 Water Div 1

                  5050-0200 Water Div 2

5050-0000 Electricity             

                  5050-0100 Electricity Div 1

                  5050-0200 Electricity Div 2

 

Gets filtered into a YTD Expense and Revenue Financial Statement for Division 1

 

14.3.4 Entering a base chart of account number

 

You must first enter a set of base chart of account numbers such as checking, utilities, etc.   Base chart of account numbers have no parent accounts and always end in 0000.   To enter a base chart of account number, click on Modules, Accounting, Chart of Accounts, New

 


 

Enter the base chart of accounts number (it must end in “0000”).   Enter the chart of accounts description, Account Type, select Yes or No for Tax Deductable, and select Debit or Credit.  Do not select a parent account as this is a base chart of account.

 

Select the Account Type from the drop down list box which includes:

      EG       Expense Cost of Goods Sold         QN       Equity

      El         Expense Labor                               QR       Equity, YTD Retained Earnings

      EN       Expense, Normal Operating            LC       Liabilities, Current

      EW            Expense, Write Off                   LL        Liabilities, Long Term

      EO       Expense, Other                               AF       Asset, Fixed    

      ET        Expense, Taxes                              AC       Asset, Current

      RN       Revenue, Normal                           AL       Asset, Long Term

      RO       Revenue, Other                              AD       Asset, Depreciation


14.3.5 Entering a sub chart of account number

 

 

To create a base sub-chart of account number you would select Modules, Accounting, Chart of Accounts, New or Edit.   Select the parent account by pressing the Sub Account of Ellipsis Button as shown on the screen below.  The new sub-account will automatically be the same Account Type and Debit/Credit Type as its parent account.

 

 

14.3.6 Register your default account numbers:


Once your base chart of account numbers are established, you must register your default account numbers with pc/MRP.   This will allow pc/MRP to automatically pull up the correct accounts to debit and credit when you are making an entry into the general ledger.   For example, pc/MRP needs to automatically pull up and debit and credit your AP and Checking Account Numbers when ever you are paying bills.   To register your key chart of accounts select Configuration, Settings and Utilities, Option 9, and Edit Template Account Numbers.  Enter your key chart of account numbers as shown on the following screen.

14.3.7  Adding multiple division and department account numbers:

With pc/MRP, you can enter divisional chart of accounts one account at a time by selecting Modules, Accounting, Chart of Accounts, New.    If applicable, you can add new divisions or departments to pc/MRP’s chart of accounts.  pc/MRP has reserved the 5th and 6th characters of the account number for divisions and the 7th and 8th characters of the account number for departments.  

For example if you wanted to add expense and revenue accounts for a division 10, department 01, you would select configuration, Settings and Utilities, Option 9, Add a New Division/Department.  pc/MRP will ask you to enter the starting chart of account number (must end on 0000) and the ending chart of account number (must end in 0000).   pc/MRP will create new chart of accounts ending in 1001 for every account that ends in 0000 between the starting number and the ending number as per the screen shown in the screen below.


 


14.3.8 Edit/View (A Chart Of Accounts)

Allows you to edit a Chart of Account Number. Editing or adding chart of account numbers is not recommended unless you fully understand accounting, and how pc/MRP operates with the chart of account numbers. pc/MRP will not accept any changes made to accounts that have had dollar amounts posted to them.

If you edit one of the base chart of account numbers, such as AR, AP, Checking, etc., you must also go to pc/MRP's configuration menu and make the same change in the chart of accounts template file.

To edit a chart of account number users must use option 72 in the Settings and Utilities Menu as this will change the account number everywhere including the prior backup copies made by pc/MRP after you close (post) a month. 

14.3.9 Print (Display The Chart Of Accounts)

Allows you to printout or display the Chart of Accounts.  pc/MRP's Chart of accounts are further defined as follows:

22100000 PAYROLL TAX F.W.T. = liability, federal withholding tax
22110000 PAYROLL TAX F.I.C.A = liability, federal social security
22120000 PAYROLL TAX F.U.T.A = liability, federal unemployment tax
22130000 PAYROLL TAX S.D.I. = liability, state disability
22140000 PAYROLL TAX S.W.T. = liability, state withholding
22150000 PAYROLL TAX S.U.I. = liability, state unemployment
22160000 PAYROLL TAX E.T.T. = liability, state employment training
29100000 COMPANY TAXES = taxes paid by individual owner
90100000 COMPANY TAX-FEDERAL = taxes paid by corporation

14.3.10 Index (The Chart Of Accounts)

Re-indexes the chart of accounts index file. pc/MRP automatically updates its index files under normal operation. However, if you ever get a "record out of range" error message, re-indexing the index file is usually the cure.

14.3.11 Remove Marked Records

Removes all deleted chart of account numbers from the disk. The records will no longer be recoverable.


14.3.12 Chart of Accounts Categories

The chart of account numbers have been divided into five different categories listed below.

CATEGORY          EXAMPLES                           NUMBERS  TYPE  DED  D/C
-----------------------------------------------------------------------------
ASSET     +(cash,recvbls,inventory,advances,equip)    1000     Ax    N    D
          -(depreciation, allowance for bad accounts)                     C
LIABILITY +(accounts pay, loans pay, taxes payable)   2000     Lx    N    C
          -(repayment of loan)                                            D
EQUITY    +(stock issued, capital in, ret earnings)   2500     Qx    N    C
          -(capital withdrawal by owner)                                  D
REVENUE   +(interest income, sales)                   3000     Rx    N    C
          -(sales discounts allowed, returned merch)                      D
EXPENSES  +(rent, wages, supplies, taxes)             4000     Ex    Y    D
          -(purchase discounts taken, taxes refund)                       C
 
 
 
Expense accounts are categorized as follows:
     EG Accounts will be totaled under Cost of Goods Sold
     EL Accounts will be totaled under Cost of Labor
     EN Accounts will be totaled under Normal Operating Expenses<
     EW Accounts will be totaled under Write off Expenses
     EO Accounts will be totaled under Other Expenses
     ET Accounts will be totaled under Income Taxes
 
Revenue Accounts are categorized as follows:
     RN Accounts will be totaled under Revenue
     RO Accounts will be totaled under Other Revenue
 
Equity Accounts are categorized as follows:
     QN Accounts will be totaled under Equity
     QR Account is reserved for single YTD Retained Earnings
 
Liability Accounts are categorized as follows:
     LC Accounts will be totaled under Current Liabilities
     LL Accounts will be totaled under Long Term Liabilities
 
Asset Accounts are categorized as follows:
     AF Accounts will be totaled under Fixed Assets
     AC Accounts will be totaled under Current Assets
     AL Accounts will be totaled under Long Term Assets
     AD Accounts will be totaled Accum Write Offs

 

 

 

14.3.13 pc/MRP Chart of Account Structures & Software Restrictions

 

pc/MRP Versions 8.03 and lower allowed divisional sub-accounts but not category sub accounts.

pc/MRP Versions 8.04a – 8.04d allowed category sub accounts

pc/MRP Versions 8.04e and higher allowed:

Adding a divisional chart of accounts by clicking on Chart of Accounts New

A divisional sub account to report to a base corporate chart of account (ends in 0000)

A user to select a divisional sub account as a parent account. 
14.3.14 pc/MRP Chart of Account Structures Rules

 

Base Top Chart of Account Number

      Has no parent account

      The account number must be unique

      Has a dept/div suffix of 0000

 

Sub Chart of Account Number

      Has a parent account

      The account number must be unique

Div/Dept Sub Account must  have a suffix that is not 0000

      Must be same account type a parent

Parent & child debit/credit accounts do not have to match

 

Edit a Chart of Account

      Edit the Chart of Account Number Field

            Must be done with Option 72

      Edit the Chart of Account Description Field

            OK

      Edit the Account Type Field

            Must have no existing transactions

            Must have no existing sub accounts

            Must have no twin div/dept accounts

      Edit the Debit/Credit Field

            Must have no existing transactions

            ?Must have no existing sub accounts

            Must have no twin div/dept accounts

      Edit the Full ID Field

            Must have no existing transactions

            Must have no existing sub accounts

            Must have no twin div/dept accounts

     

Delete a Top Base Chart of Account

      Must have no transaction history

      Must have no sub accounts (sub accounts must be deleted first)

Must have no Div/Dept Accounts (Div/Dept accounts must be deleted first)

 

Delete a Base Sub Chart of Account

      Must have no transaction history

      Must have no sub accounts (sub accounts must be deleted first)

Must have no Div/Dept Accounts (Div/Dept accounts must be deleted first)

 

Delete a Top Div/Dept Chart of Account

      Must have no transaction history

      Must have no sub accounts (sub accounts must be deleted first)

 

Delete a Div/Dept Chart of Accounts

      Must have no transaction history

Must have no sub accounts (sub accounts must be deleted first)