Standard Account Codes

Standard Account Codes.png

Accounting > File > General Ledger > Standard Account Codes

Standard Account Codes are control accounts RFMS uses to automatically post entries to General Ledger. These accounts are typically assigned during implementation, but you may need to review or update them when your accounting or payment configuration changes.

RFMS uses these account codes as defaults when performing certain functions. Manual entries are generally not made directly to these accounts.

All Standard Account Codes must be defined, even when they are not currently being used. Standard Account Codes cannot 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.

FieldTypeExplanation
Accounts ReceivableCurrent Asset

Used for sales that have been delivered and job costed. When a sale is processed through Job Costing, RFMS posts the receivable to this account. This account must be located within the Current Asset section of the General Ledger.

InventoryCurrent Asset

Used for inventory entered through the Add Roll and Add Item functions when inventory is posted directly to Accounts Payable. RFMS also uses this account for inventory withdrawn when the Journal is closed. This account is a Current Asset.

Money Market (Savings)Current Asset

Used by the integrated savings account routine. When you transfer money between the checking and savings registers through Bank Transactions, RFMS automatically posts the transfer to this General Ledger account. This account is a Current Asset.

CheckingCurrent Asset

Represents the primary checking account used for Accounts Payable check writing. This account is a Current Asset.

Mill Claims Due 

Used when a claim is job costed in the Claims module. RFMS debits this account when the claim is job costed.

Accounts PayableCurrent Liability

Used for payables posted in RFMS. When a payable is entered, RFMS credits this account. When a check is issued for the payable, RFMS debits this account. This account is a Current Liability.

Sales Tax Payable 

Used to record sales tax liability during the Journal Close routine. RFMS credits this account for the sales tax liability entered during Journal Close and debits the corresponding Sales Tax Expense account.

The Sales Tax Payable account must be located within Current Accounts Payable.

Federal Withholding 

Used for federal withholding amounts from Human Resources. RFMS posts federal withholding to this account.

Local WithholdingCurrent Liability

Used for local payroll withholding, such as city income tax. RFMS credits withheld amounts to this account. This account is a Current Liability.

Misc. Payroll W/HCurrent Liability

Used for miscellaneous payroll withholding amounts. RFMS credits withheld amounts to this account. This account is a Current Liability.

Customer DepositsCurrent Liability

Used for payments received on customer orders that have not yet been job costed. RFMS posts these payments to Customer Deposits until the order is job costed. When the order is job costed, the deposit is applied to Accounts Receivable.

This account is a Current Liability.

Sales 

Used when an invoice is job costed. RFMS credits this account with the full invoice amount, including sales tax. This is an Income account.

Discounts To Customers 

Used as the default account when a balance is discounted from an invoice. RFMS debits the discount amount to this account.

This is typically a contra Income account. You can select a different account code when posting an individual discount instead of using the default account assigned here.

Sales Tax Expense 

Used as the offsetting account when RFMS records sales tax liability during the Journal Close routine. RFMS debits this account while crediting Sales Tax Payable.

Sales Tax Expense is a required Standard Account Code. The current RFMS configuration places this account within the Income section of the General Ledger.

Cost of Materials 

Used to record the cost of inventory withdrawn during an accounting period. RFMS debits this account and credits Inventory for the corresponding amount.

The account accumulates the cost of inventory withdrawn during the period.

Freight

Used to record the cost of inventory withdrawn during an accounting period. RFMS debits this account and credits Inventory for the corresponding amount.

The account accumulates the cost of inventory withdrawn during the period.

Earned Discounts

Used for cash discounts taken on Accounts Payable invoices. RFMS credits earned discounts to this account when checks are written through the Check Writing routine.

Because these discounts generally reduce inventory cost, the account is classified as Cost of Sales.

InsuranceExpense

Used for basic insurance expenses withheld through payroll. RFMS posts these expenses to this account. This is an Expense account.

Payroll Taxes

Used for the employer's payroll tax expense, including applicable FICA, FUTA, and state or local unemployment taxes.

This is an Expense account. RFMS does not automatically book the employer's portion of payroll tax expense when payroll is processed. The expense must be recorded manually through a journal entry or when the tax payment is posted.

Interest Income 

Used by the Money Market routine to record interest earned on the savings account. RFMS debits the applicable savings account and credits this account for the interest amount.

This is a Miscellaneous Income account.

Finance Charges

Used when finance charges are applied to delinquent Accounts Receivable balances. RFMS debits Accounts Receivable for the finance charge and credits this account for the same amount.

This is a Miscellaneous Income account.

Claims In Process

Used to track claim amounts while a claim is being processed. RFMS credits this account for the total claim amount when the claim is job costed. RFMS debits the account when a payment is posted to the claim.

Cost Of Claims

Used to track the inventory cost associated with claims. RFMS debits this account for the total inventory value when a claim is job costed. RFMS credits the account when the related supplier invoice is posted.

Credit Card Fees/Surcharge Used to post credit card processing fees and surcharge amounts for supported credit card transactions.

Additional Standard Account Codes for ERRM 

ERRM specific standard account codes.png

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

The Inter-Store Transfer account code is not utilized by the software.

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