Cost Codes and Financial Processing The Automation of Accounting Transactions

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Cost code selection - Click to enlarge Cost code definition - Click to enlarge				What are cost codes? Cost codes are like little programs which tell the system how a transaction is to be processed when it is posted to the accounting ledgers. Many accounting tasks in reservation management could be handled by using fixed expense and payment types and forms. What is not automated could be handled manually in the accounting ledgers. When the system expands, and more and more customized features enter the system, this manual processing becomes not only costly in terms of labor, but also increases the risk of error. Costcodes are designed to overcome this hurdle. Customized accounting Cost codes are designed to automate customized accounting processes. A cost code not only carries information about the accounting ledgers, vendor, statistics, and markups, but also tells the system how the final accounting transaction transfers amounts from one account to another. While the "front desk" enters the transaction "in a simple way" (fully sufficient for journals, invoices etc.), the backoffice handles the transaction in its own way invisible to the front user (agent). This is managed by the cost codes during the posting of the transaction. Batch tables In addition to cost codes, the software also employs another powerful feature for automating financial processing. Each property is furnished with a financial table of batch transactions. These are created by the users by freely adding and modifying as many lines as needed for automating the transaction for that particular property. Each line has, among other fields, its specific cost code which carries the accounting information. They relieve the user from remembering lists of subtasks to perform for each reservation or payment, and are particularly useful with revenue processing: When the payment is to be distributed to the various parties (e. g., owners, vendors, agents, and the company itself), the customized revenue tables (with cost codes) create the entire distribution batch at one click. Back to Rental Property Management System.

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