Skip to main content

Step 2: Accounting Code Setup

Zuora

Step 2: Accounting Code Setup

  1. Last updated
  2. Save as PDF

This topic explains Step 2: Accounting Code Setup in the Chart of Accounts configuration in Zuora. Accounting codes serve as the foundation for mapping financial transactions to General Ledger (GL) accounts. In this step, you will create and manage accounting codes, assign them to categories, and optionally override Constant GL Segment Values that were configured in Step 1.

Refer to Set up chart of accounts for additional reference.

Overview of Accounting Code Setup

The Accounting Code Setup screen is used to create and manage accounting codes under specific financial categories, for example, Assets, Liabilities, Revenue, and Expenses. These codes are essential for recording financial transactions accurately in your financial system. The following are the main sections:

  • Categories Panel: Displays financial categories and subcategories, such as, Assets, Liabilities, and so on.

  • Accounting Codes Table: Shows the list of accounting codes created within a selected category.

  • Actions:

    • Add a new accounting code.

    • Edit existing codes.

    • Override Constant GL Segment Values for specific codes.

Understanding the interface

The section helps you understand the interface.

Categories Panel

  • Displays financial categories in a tree view:

    • Assets: Includes subcategories like Accounts Receivable, Cash, and Contract Assets.

    • Liabilities: Includes subcategories for liabilities like Deferred Revenue.

    • Equity, Revenue, and Expenses: Represent additional financial categories.

  • Clicking on a category filters the accounting codes displayed in the Accounting Codes Table.

Accounting Codes table

  • Displays accounting codes based on the selected category. Key columns include:

    • Accounting Code Name: The unique name of the accounting code.

    • Accounting Code Type: Indicates the type of accounting code (e.g., Revenue, Asset).

    • Active: Shows whether the accounting code is active.

    • Actions: Provides options to edit or delete accounting codes.

Add new accounting code button

Click the Add New Accounting Code button. This opens the form to create a new accounting code.

Setting up Accounting Codes

Adding a New Accounting Code

  1. Click the Add New Accounting Code button.

  2. Fill out the following fields in the popup form:

    • Accounting Code Name: Enter a unique and descriptive name for the accounting code.

    • Accounting Code Type: Select the type of the accounting code from the dropdown menu.

      • Examples include Revenue, Asset, Expense, and so on.

    • Category: Select the financial category, for example, Assets and Liabilities, the code belongs to.

  3. (Optional) Override Constant GL Segment Values:

  • If a Constant GL Segment Value (defined in Step 1) needs to be overridden for this specific accounting code:

    • Add the new value in the relevant field.

    • For example, update the "Product SKU" constant value to a category-specific override. For example, SKU-12345.

  1. Click Save to create the new accounting code.

Editing an existing Accounting Code

  1. Find the accounting code in the Accounting Codes table.

  2. Click the Edit button in the Actions column.

  3. Update any of the fields, including:

    • Accounting code details.

    • Active status.

    • Overrides for Constant GL Segment Values.

  4. Click Save to apply your changes.

Deleting an Accounting Code

  1. Find the accounting code in the Accounting Codes table.

  2. Click the Delete button in the Actions column.

  3. Confirm the deletion.

Note: Deletion is only allowed if the code is not associated with any transactions or mappings.

Accounting Code Setup

  1. Define Codes Strategically:

    • Use clear, descriptive names to ensure codes are easily identifiable across your organization.

    • Align codes with your financial system's GL structure.

  2. Use Overrides Sparingly:

    • Only override constant GL segment values when necessary. 

  3. Activate Relevant Codes Only:

    • Keep inactive or unused codes deactivated to avoid errors during transaction mapping.

  4. Regular Review:

    • Periodically review the list of accounting codes to ensure all active codes are still relevant.

Troubleshooting tips

  1. Accounting Code Not Displayed in Reports:

    • Ensure the code is active.

    • Check if the code is correctly mapped to transactions.

  2. Unable to deactivate an Accounting Code:

    • Verify that the code is not associated with any active transactions or mappings.

  3. GL Segment Overrides Not Applied:

    • Check if the overridden value is correctly saved. 

  • You cannot assign the same accounting code to multiple categories. Each accounting code must be unique and belong to a single category.

  •  If you don't override a constant GL segment value, the default constant value defined in Step 1 will be used.

  • There is no limit to the number of accounting codes you can create.Zuora does not impose a strict limit, but maintaining a manageable list is recommended for better usability.

Next, go to Step 3: Associating Accounting Codes with Transaction Types.

Tags recommended by the template: article:reference