Know What is Account Code?

• Account codes:

    Account codes define the type of activity being recorded in a transaction such as Revenue, Expense, Assets, Liabilities and fund balance in the general ledger.

• Structure of Chart of Accounts:

           The Structure of Chart of Account consists of Account Code and Location Code. 

• Account Code: It is used to indicate the Account Head of transaction.
• Location Code: It is used to indicate the location / Function of the Accounting Unit. 

• Structure of Account code:

           The Account Code is a SIX DIGIT CODE as explained below:

• 1st and 2nd digits indicate the Account Group.
• 1st and 2nd along with 3rd digit indicate the Main Account Code.
• The 4th and 5th digits indicate Sub-Account within each Main Account Code.
• The 6th digit indicate Voltage Class.

• Lets understand with an Example:

           Account Code = 1 0 . 5 4 1 4

• “10”           is the Account Group referring to Fixed Assets.
• “10.5”        is the Main Account Code referring to Plant and Machinery.
• “10.541”   is the Sub-account Code referring to Transmission Plant – Transformers having a  rating of 100 KVA and above.
• “10.5414"  is the Account Code referring to Transmission Plant – Transformers having a  rating of 100 KVA and above in 66KV voltage class Station.

• Voltage Class/Activity Code(6th digit)

           The KPTCL has to maintain its Transactions, Registers and Accounts each voltage class-wise as required by Karnataka Electricity Regulatory Commission (KERC).The Voltage class-wise break up in each Account Code is indicated by a distinct Activity Number Code suffixed to it. These Account Codes have to be given effect to retrospectively from 1-4-2000.

• What is Location code?

             The Location Codes have been assigned to all accounting units, in such a way that the code  denotes the function performed by the accounting unit.

• Location code is a three-digit code. 
• Location Code identifies the units for purposes of preparing separate Trial Balance etc.
• Location Code is a prefix to the account codes given in the chart of accounts and remains the same for all transactions at an accounting unit.
• Location Code should appear on all accounting documents in use by the particular accounting unit.
• For Example: 949– 10.1014 represents value of land owned under full title. 949 indicates name of accounting unit Transmission Line & Sub-Station Division, Nelamangala. 

Let's Make it Easy!

• Account code ಎಂಬುದು 6 ಅಂಕಿಗಳ ಸಂಖ್ಯೆಯಾಗಿದ್ದು, ಇದು ಒಂದು ಸಂಸ್ಥೆಯಲ್ಲಿ ನಡೆಯುವ ವ್ಯವಹಾರಗಳನ್ನು 4 ಬಗೆಯ ಪ್ರಮುಖ ವ್ಯವಹಾರಗಳಾದ ಆದಾಯ(Revenue), ವೆಚ್ಚ(Expense), ಆಸ್ತಿ(Assets) ಮತ್ತು ಹೊಣೆಗಾರಿಕೆ(Liabilities) ಗಳಲ್ಲಿ ಯಾವುದಕ್ಕೆ ಸಂಬಂಧಪಟ್ಟಿದ್ದು ಎಂದು ವ್ಯಾಖಾನಿಸಲು ಸಹಕರಿಸುತ್ತದೆ.

• Account code ನ ರಚನೆಯು 6 ಅಂಕಿಗಳನ್ನು ಒಳಗೊಂಡಿದ್ದು, 
• 1 ಮತ್ತು 2 ನೇ ಅಂಕಿಗಳು Account Group ನ್ನು ಹೆಸರಿಸುತ್ತದೆ
• 1 ಮತ್ತು 2 ನೇ ಅಂಕಿಗಳೊಂದಿಗೆ 3 ನೇ ಅಂಕಿಯೂ ಸೇರಿ Main Account Code ನ್ನು ಹೆಸರಿಸುತ್ತದೆ
• 4 ಮತ್ತು 5 ನೇ ಅಂಕಿಗಳು Sub-Account Code ನ್ನು ಹೆಸರಿಸುತ್ತದೆ
• 6 ನೇ ಅಂಕಿಯು Voltage Class ನ್ನು ಹೆಸರಿಸುತ್ತದೆ.

• Location Code ಎಂಬುದು 3 ಅಂಕಿಗಳ ಸಂಖ್ಯೆಯಾಗಿದ್ದು, ಇದು ಒಂದು ಸಂಸ್ಥೆಯಲ್ಲಿ ನಡೆಯುವ ವ್ಯವಹಾರಗಳನ್ನು ಯಾವ ಕಚೇರಿ(Accounting unit) ಗೆ ಸಂಬಂಧಿಸಿದ್ದು ಎಂದು ಗುರುತಿಸಲು ಸಹಕರಿಸುತ್ತದೆ.

©Harisha, Asst, BESCOM