Methods of coding in accounting systems
There are a number of different coding systems in accounting:
- Alphabetical - where only letters are used.
- Numerical - where only numbers are used.
- Alpha-numerical - where both numbers and letters are used.
Where coding is used
- Each financial document - invoice, credit note etc.
- Goods listed on invoices have product codes.
- Each page of the day books are numbered.
- Each account in the receivables and payables ledger have a code followed by the account number (RL and PL).
- General ledger accounts are numbered and often arranged in a specific order: