Multi-segmented General Ledger Code for Fixed Assets

The general ledger codes used in a corporation’s chart of accounts are typically made up of multiple segments. Depending on the number of segments, the combinations expand exponentially. For example, the general ledger code 00-000-0000 could be defined as follows:

  • first segment “00” is the company id
  • second segment “000” is the department id
  • third segment “0000” is the actual general ledger code

Multi-Segmented

An organization with two companies, five divisions or departments and six different depreciation expense codes will generate a General Ledger Code Master List Table with sixty entries. The Glue GL Code function in Bassets eDepreciation enables the assembly of these segments into a single code. This can greatly reduce the number of entries in this example from sixty down to just six. This will simplify data entry and enhance query and reporting options.

When dealing with fixed assets, there are three general ledger codes involved:

  1. Asset
  2. Accumulated
  3. Expense

Each of these general ledger codes has the option to be “glued”. The glue GL allows for each segment to be defined by a field, length and separator character. So in our previous example, if an asset had the values of “01” in the company field, “404” in the department field and “6610” in the asset GL field, the resulting general ledger code would be “01-404-6610”. So instead of having an extremely long list of 11 digit codes to choose from, the user only needs to select the 4 digit account code and eDepreciation will assemble the other components.

The advantage to the user is twofold. When a detail report is sorted by the Asset G/L Code, the data will additionally be sorted by company and department. When a journal entry report (the Depreciation Expense Report) is printed, the accumulated depreciation and depreciation expense will be properly broken out for posting. For more information on uploading the monthly accumulated and expense journal entries see our earlier post on the topic:

Interface Depreciation Journal Entries to General Ledger

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can register for our live webinar, download a free evaluation copy and get a personalized pricing estimate.