Sales codes are used to determine income and cost of sales accounts when items are invoiced. Sales codes are also used to group items for reporting purposes. When a new item is entered for a client, a sales code must be assigned to the item.
To open the Sales Codes File:
Select "Files"
Select "Sales Codes"
The "Sales Codes Screen" is displayed.
Add Sales Code
To add a new sales code to the list, click the “Add Button”. A new blank sales code record is displayed and the sales code information may be entered.
Delete Account
To delete a sales code from the list, click the “Delete Button”. A message “Are you sure you want to delete this sales code?” is displayed. Select “Yes” and the sales code is deleted from the list.
Sales Code
The code used to identify the sales code or sales category.
Example:
“FURN” may be the sales code used to identify an item of furniture.
Description
The description of the sales code.
Example:
“Furniture” may be the description used to describe the sales code “FURN”.
Unit
The unit of measure for this sales code. When a new item is entered for a client, the default unit of measure for the item is “Each”. If the “Unit Field” for the sales code is filled in, the unit for the sales code overrides “Each” as the unit of measure for the item.
Example:
The unit for the sales code “FABRIC” is entered as “Yards”. When an item is entered and the sales code “FABRIC” is selected as the sales code for the item, then “Yards” fills in the “Unit Field” for the item.
Income Accounts
Income accounts are assigned to each category of selling cost for sales codes. The income accounts are used to determine the income account to credit when an item is invoiced.
If the sales code FABRIC was used with the following amounts:
4050 Selling cost $500
4050 Mark up $250
4110 Freight $35
4120 Crating $0
4130 Installation $0
4140 Other $0
2040 Sales tax $54
General ledger transactions created when the item is invoiced.
Debit accounts receivable $500
Credit selling cost 4060 -$500
Debit accounts receivable $250
Credit mark up 4060 -$250
Debit accounts receivable $35
Credit freight 4110 -$35
Debit accounts receivable $54
Credit sales tax 2040 -$54
Expense Accounts
Expense accounts are assigned to each category of purchase cost for sales codes. The expense accounts are used to determine the expense account to debit when an item is invoiced.
If the sales code FABRIC was used with the following amounts:
5060 Purchase cost $300
5110 Freight $25
5120 Crating $0
5140 Installation $0
5140 Other $0
2050 Sales tax $0
General ledger transactions created when the item is invoiced.
Debit selling cost 5060 $300
Credit accounts payable -$300
Debit freight 5110 $25
Credit accounts payable -$25
Taxable
The taxable code for each category of selling cost default from the client file when a new item is entered in design projects. If a project is assigned to the item, the taxable codes for the project override the taxable codes from the client file. When a sales code is assigned to an item, the taxable codes for the sales code override the taxable codes from the client and project file if the taxable code for the sales code is filled in.
Taxable defines if the category of selling cost is taxable or not. Yes or No.
Example:
The taxable codes for the sales code LABOR are all set to No. If LABOR is entered as the sales code for an item, “No” overrides the taxable codes from the client file.
Taxable codes are generally left blank so they do not override the taxable codes from the client file. Taxable codes are generally only entered for a sales code that is always non taxable regardless of where the client is located.
Tax Percent Code
The tax percent code for each category of selling cost default from the client file when a new item is entered in design projects. If a project is assigned to the item, the tax percent codes for the project override the tax percent codes from the client file. When a sales code is assigned to an item, the tax percent codes for the sales code override the tax percent codes from the client and project file if the tax code for the sales code is filled in.
Tax percent codes define the sales tax percent to use to calculate sales tax for the category of selling cost.
Example:
The tax percent code for the selling cost is 1 and the tax percent code for mark up is 2. Sales tax % 1 is used to calculate tax on selling costs. Sales tax % 2 is used to calculate tax on mark up.
Tax codes are generally left blank so they do not override the tax codes from the client file.
Percent Taxable
The percent taxable for each category of selling cost default from the client file when a new item is entered in design projects. If a project is assigned to the item, the percent taxable for the project override the percent taxable from the client file. When a sales code is assigned to an item, the percent taxable for the sales code override the percent taxable from the client and project file if the percent taxable for the sales code is filled in.
Percent taxable defines what percent of the selling cost is taxable.
Example:
The percent taxable for selling cost is 100 and the percent taxable for mark up is 70. 100% of the selling cost is taxable. 70% of the mark up is taxable.
Percent taxable is generally left blank so it does not override the percent taxable from the client file.
Mark Up %
The mark up % for each category of selling cost default from the client file when a new item is entered in design projects. If a project is assigned to the item, the mark up % for the project overrides the mark up % from the client file. When a sales code is assigned to an item, the mark up % for the sales code overrides the mark up % from the client and project file if the mark up % for the sales code is filled in.
Mark up % defines what percent to mark up selling costs.
Example:
The mark up % for the selling cost is 35. The selling costs are marked up 35%.
Mark up % is generally left blank so it does not override the mark up % from the client file.
Specification
The specifications tab defines descriptions that default to new item specifications. The specification descriptions are only used if the specification feature is installed.
Code Text 1 - 10
The text to describe codes 1 - 10 for a specific sales code.
Code 1 - 10
The default value for codes 1 - 10 that automatically fill in when a specification for an item is created. Code 1 may be “X” or blank.
Description Text
The text to describe descriptions 1 -10 for a specific sales code.
Description
The default value for description 1 - 10 that fill in when a specification for an item is created.