When you create a new Company, it comes with a standard set of Analytical Codes. Review these Codes before setting up your Master Records for Customers, Suppliers (Vendors), and Product/Inventory, and make any necessary updates. Most of the Codes are optional, but to gain maximum reporting and analysis benefits, you should use them with all Customer, Supplier (Vendor), and Inventory Master Records.
To view the 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.
Company details and settings (2.1) - AIQ Academy
Setting up and Administering Group and Entity Users
Customer and Supplier (Vendor) 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
- Ship Via
- Supplier Groups
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:
- Under Customers & Suppliers, select Areas.
- Click Add New Area. This opens the Add Area screen.
- Complete all fields and click Save.
To edit Area list entries:
- Click Edit beside each code.
- 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 allow you to categorize your Customers for Sales Analysis Reporting.
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.
The Delivery Routes field on each Customer Master Record uses a default route listed here.
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).
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.
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 allow you to assign priorities to your important Customers and Suppliers (Vendors) for the fulfillment of orders or shipments.
Regions allow you to classify Customers according to Regions in addition to Areas:
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:
Customer and Supplier (Vendor) Master Records both use Ship Via to indicate a preferred transport method:
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.
Item Codes relate to Inventory Management. An Item is a Product or Service in this system. Products and Services can be 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.
Each Product or Service is identifiable by an Item Code which can be alpha-numeric, uppercase, lowercase, or numeric.
Item Groups classify Items into major categories. You can then use these for Sales Analyses by Product Group and Sales Rep Commission Calculations.
These designate the main areas (physical locations) where Items are stored.
Tick On Hand to maintain Items stored in this location.
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 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.
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:
- Direct Costs
- Overhead Costs
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:
- Click Add New Category.
- 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.
- Click Save.
Editing GL Categories
- Click Edit beside the relevant Category.
- 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”:
- Click Save.
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.
How do I Modify or Re-Design the Layout of the Profit & Loss (Income & Expenditure) and Balance Sheet Report?
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.
- 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: System Accounts
System Accounts are a type of General Ledger Account solely for use by the system. They are created as part of the company setup and are populated with the relevant General Ledger Code from the Chart of Accounts listing.
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.
The following fields are available on the System Account screen:
- 2 Foreign Currency Gain & Loss accounts
- 2 Stock (item) accounts:
- Balance Sheet
- Bank Charges
- Discounts Allowed
- Discounts Received
- Minority Interests
- Purchase Tax (Control)
- Retained Earnings (Control)
- Sales and Purchase Discount
- Sales Tax (Control)
- Tax Liability
- Trade Creditors Control (Control)
- Trade Debtors Control (Control)
Setting up System Accounts:
- Set up a GL Account.
- Go to Setup > Codes Maintenance > System Accounts.
- Click Add New System Account.
- In the System Account screen, link the GL Account you created previously, and complete the other details.
- Click Save. The linked GL Account is now a System Account.
There are limited facilities for adding new Control Accounts. 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. You cannot change a Control Account after nominating it.
Control Accounts include:
- Trade Debtors Control
- Trade Creditors Control
- Retained Earnings
- Tax Control
It is not possible to:
- 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:
- Set up a GL Account.
- Go to Setup > Codes Maintenance > System Accounts.
- Click Add New Control Account.
- In the Control Account screen, link the GL Account you created previously, and complete the other details.
- Click Save. The linked GL Account is now a Control Account.
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.
How do the Multi-Currency Features of the System Work?
To Add New Currencies:
- Click Add New Currency.
- 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"), Description, Symbols, and Units. The other fields will autofill with the connected data.
- Manually enter the Rate or update it from TransferMate.
- Tick Base to nominate the currency as a Base Currency. There can only be one Base Currency in the system.
To Edit Currencies:
- Amend an existing Currency by clicking Edit next to its entry in the table.
- Complete your edits.
- 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, AIQ pulls exchange rates from TransferMate.
To View Exchange Rate History:
Click View Rate History
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
- Click Add New Tax to open the Edit Tax screen.
- Complete the following:
- Tax Code: 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. 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: Selecting this will apply reverse Charges/PVA to imports outside the UK for UK businesses or outside the EU for Irish businesses. Reverse charges/PVA will be applied to Purchase Transactions at the standard rate for the company.
- Partial Reclaimable, Partial Reclaim Rate (%): This allows the system to calculate the non-reclaimable portion of the VAT from the Supplier's Invoice VAT amount and then add the non-reclaimable part to the Net amount. This assumes that you know the reclaimable rate when processing the Supplier’s Invoice. This will post only the reclaimable portion of the tax to the Purchase Tax GL Account. The remainder will be added to the net and posted to the Expense GL Code.
- 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 edit all fields except the code. Click Edit next to the code in the listing. If a Tax Code has been used, and should no longer be, edit its description to reflect this.
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.
- Go to Setup > Codes Maintenance > Taxes > Add New Tax.
- Click Add New Tax, assign a new tax rate, and click Save.
- Click Tax Codes Bulk Update Tool.
- In the Existing Tax Code field, select the existing default rate, and in New Tax Code add the relevant code.
- 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 hard coded 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.
How does the System Facilitate VAT Management (U.K. & Ireland)?
How do I Partially Recover my Input Tax?Delete