Accounts Payable Section 1 Chart of Accounts Chart

Accounts Payable Section 1 – Chart of Accounts

Chart of Accounts

This section of training gives us an overview of the structure of Prism’s Chart of Accounts and a better understanding of the definitions and usages of different General Ledger (GL) codes. Please refer to the trainer provides you. Chart of Accounts your

A typical GL code looks like this: 040 -167 -000. 000 Since all GL codes end with “. 000”, to save time and to make discussions simple, we will not discuss all the zeros behind the period. In front of the period, all P&L-related GL codes are 9 -digits long.

The first 3 -digits determines what department this GL code belongs to. 040 -167 -000 050 -102 -000 120 -542 -000

The most common departments are: 040 : Rooms 050 : Food 060 : Beverage 070 : Telecommunications 090 : Miscellaneous 110 : House Laundry 120 : Administrative & General 140 : Sales & Marketing 160 : Utility 180 : Engineering

In the bottom of the Chart of Accounts, you will find many tabs. Each tab represents an individual department.

This Chart of Accounts is distributed to ALL properties. You may see some departments that are not applicable to your property. Feel free to hide those tabs (departments) that do not apply to you. We will discuss more about each department very shortly.

Essentially, each department consists of the following portions, in this specific order: *Revenue *Cost *Payroll related expenses *Contract labor *Other (Operational) expenses

When looking for a GL code, ask yourself the following questions: 1. What specific department does the expense belong to? 2. What type of expense?

Example: You are holding a cleaning supplies invoice in front of you… Q 1. What specific department does the expense belong to? A 1. We know we use these cleaning supplies in guest rooms; therefore Rooms Department it is. Action: Go to the “Rooms” tab on the Chart of Accounts

Q 2. What type of expense is this? A 2. Cleaning supplies are part of Operating Expenses Action: Operating expenses are located at the bottom portion of each department, scroll to the bottom and start searching for the appropriate GL code.

Not sure which GL code to use? The description of each code is located on the right.

Did you know there is a “FIND (Ctrl+F)” function in Excel? Using “Find” function, type the work “cleaning”; all the fields containing the word “cleaning” will be selected. You may be able to find your GL codes faster this way

Let’s take a look at several departments. While most departments need no introduction, we want to bring to your attention several of them along with some GL codes.

040 ROOMS The following codes shall be used by limited service properties only: 040 -124 -000 Laundry Staff 040 -139 -002 Contract Laundry 040 -370 -000 Supplies Laundry Most Full service properties shall use department 110 for all Laundry related expenses.

051 FRANCHISE F&B OUTLET This department is designed for properties with a franchised outlet (say, TGIF) attached to them. If your restaurant or lounge is not franchised, you shall not use this department.

080 GIFT SHOP Unless you have Gift Shop attendants on staff, all gift shop related expenses will be coded to department 090.

090 MISCELLANEOUS There are GL codes designed for revenues, and matching codes for expenses. Be careful not to code expenses to revenue codes.

Heads Up!! There are many GL codes with wordings like “Other” or “Miscellaneous”. These codes should not be used unless discussed with your Corporate Accountant beforehand.

091 PARKING Similar to department 080, unless you have parking attendants on staff, all parking related expenses shall be coded to department 090

110 House Laundry This department is to be used by most full service properties only. For all limited service properties, all laundry related expenses should be coded to department 040.

110 House Laundry This department is to be used by most full service properties only. For all limited service properties, all laundry related expenses should be coded to department 040.