General Ledger codes are codes that you assign to debit or credit entries to make accounting easier and more functional. Generally, there are two types of GL Codes:
Debit/Payable.
Credit/Receivable.
Operate only uses Credit/Receivable GL Codes.
There are two ways in which Operate implements GL Codes: :
For collectible entries / customer payments - These GL Codes are configured at an organizational level and are used when recording payments through Accounts Receivable, to ensure that your accounting process directs the money where appropriate.
For billable entries - These are the codes assigned to products and services set up within Operate.
Note - If you are exporting data into a third party accounting software - e.g. Quickbooks - it is mandatory to configure your GL Codes in Operate and ensure that they are the same as in your destination accounting tool.
Please also note that Quickbooks Desktop does not support sub products, therefore you cannot use a semicolon within your Operate GL Codes.
This guide demonstrates GL Codes using digits, however, you can also use text.
1. Configuring Payment GL Codes for Your Organization
To configure Payment GL Codes for your entire organization, go to the Operate Settings > General > Organizations > GL Codes.
Adding a New GL Code
To add a new GL Code, click the New button, found on the top left of the list.
Next, Add your GL Code information - Name your code, preferably stating the destination of the funds managed with it. Enter the GL Code, matching it with your accounting tool as needed. Then, select your Organization. If you manage multiple Organizations through the same Operate account, be sure to select the appropriate one. Save your changes when you are ready.
Editing a Payment GL Code
To edit an existing Payment GL Code, click the pencil icon next to it.
Update the needed information, then save your changes.
Deleting a Payment GL Code
There are two easy ways to delete a GL Code. In both cases, you will be asked to confirm your choice.
Select the GL Code that you want to delete, by ticking the box next to it, then click Delete on top of the list. You can use this method to delete multiple GL Codes in one go, simply by ticking the boxes next to the ones you want to remove.
Click the red "x" next to the GL Code you want to remove. This method can only be used to delete one record at a time.
Quick Updates of Payment GL Codes
To quickly update one or more GL Codes in one go, select the records you want to update, by ticking the boxes next to them, then click Update at the top of the list.
The GL Codes that you set up under Settings > General Organization > GL Codes are used under Invoicing > Accounts Receivable, when recording a payment.
Here is where you will see a dropdown list that lets you select a GL Code that will direct the funds to the destination you choose. For example, if a customer pays for an invoice and you want the income to be directed to your tax account, you can simply select the appropriate GL code to do so.
2. Configuring Billable GL Codes on Products/Services
When setting up a Product/Service within Operate, whether that is an Office, Meeting Room, Desk, Other Product or Recurring Service, you can add a GL Code for each product.
Depending on the type of product/service you are setting up, the GL Code field will be found by default in one of the following two sections of the product/service detail page:
Information - Day Offices, Desks, Meeting Rooms, Offices,
Pricing - Other Product, Services, Time Based Products/Services, Virtual Services.
Regardless of the section, fill in the GL code, making sure it matches one of the GL Codes that you have set up during Section 1 of this guide.
For example, if you want the revenue generated from all of your products/services (or a certain product group), to go to a specific Accounts Receivable GL Code (e.g. Bank), you will need to add the same GL Code you used as the Bank GL Code under Settings > General > Organization > GL Code. If your Bank GL Code is 1234, then the products/services for which you want to send revenue to Bank, will also need to contain 1234 as a GL Code.