General Ledger Account Code Format

Question

I have added a general ledger account table to my database to store account codes and their descriptions.

I have asked three potential clients, two use a 4 digit numeric code the other a 3 digit numeric code.

I have been unsuccessful in finding any standards for the account code, can anyone recommend a format based on their experience with general ledger?

Numeric(4), Varchar(5) etc...

Answer 1

There is no standard format. I've worked with upwards of 10 financial systems, all have used different GL code formats.

Have a look at the data being used currently and, if possible, check any restrictions imposed by the front-end software (ie numeric only, up to 10 characters long etc) and then set your field accordingly.

Anecdotally (just for reference) the systems I have dealt with have been (from memory) obviously unique, between 4 and 8 characters in length and only numeric - but that's certainly not a hard and fast rule. And I've always stored them as varchars because often the front-ends allow non-numeric codes (even thought I've never come across them being used).

Answer 2

There is no standard format or length for Accounting Codes. The length depends on the number of accounts you want to have in your system.

One thing you can do, Assign the different series to different types of accounts. ex. Asset NACs like 1XXX, Liability NACs 2XXX, Revenue NACs 3XXX, Expense NACs 4XXX to identify the account from initial number.