Investment coding

In this article you will find information about:

1. Investment code concept-When to use?
2. How investment coding works?
3. Settings

1. Investment code concept-when to use?

During the normal course of business, most of the expenses are of routine nature. It’s only few times that some items of large amount have been bought and that needs to be treated as an investment/asset – this feature facilitates such accounting treatment

When certain items need to be booked as investments (book on a balance sheet code)

When certain relations need to be booked as investments (book on a balance sheet code)

2. How investment coding works?

Based on relations: Certain relations marked here will be booked on the specified balans code as per amount mentioned in setting (i.e. more than 450)

Based on account codes: Certain account codes marked here will be booked on the specified balans code as per amount mentioned in setting (i.e. more than 450)

3. Settings

• You can go to the ‘Processing Settings’ from the settings options panel. Expanding the option Processing Settings, you will find the Investment Coding option there.

• When invoices are processed, all the suggested Investment Codes must be for the balance sheet account codes.

• While making the desired changes in the settings option for Investment Code, you have two different approaches to follow.

1. Investment code based on Contact

2. Investment code based on Account Code

• To add new rule as above, you can use the button ‘+New’ from the Investment code based on Contact section. As shown in the below screen, you will find more options while creating a new rule.

There is one more setting ‘Booking Type’. This will give two options:

1. Investment code based on Account Code
2. >450- To book on given Investment code, only if the amount is >450

• In this section you can give the investment code which is based on the Account Code. This rule says that, if particular contact is having particular account code with description then that will be booked on given Investment Code.

• This setting of rule is not contact specific, however this rule will be applied for any contact if the provided Account Code is encountered.

As shown in the above screen, for account code 4520 – [Represenatiekosten] the Investment Code 1150 –[Depositorekening] is set. So for all the contacts with 4520 – [Represenatiekosten] account code, it will be booked on 1150 –[Depositorekening]

There is one more setting ‘Booking Type’. This will give two options:

1. Always- To book always on the given Investment code
2. >450- To book on given Investment code, only if the amount is >450.

Things to keep in mind:

• Based on grootboekrekening: It will be unfair to use option ‘always’ as there will be no relevance of the selected account code. Bookings on selected account codes will always be booked as investments

• Based on relation: setting mentioned here will overrule the settings on sub menu ‘Relaties’ but as per the selected criteria in column ‘Codingsregel’.