Book Codes

You can use book codes to simultaneously generate sets of entries to record related transactions according to multiple GAAPs for the same business unit in the same ledger. For example, where local and corporate accounting principles are not compatible, you define a local (L) and a corporate (C) book code. For those situations where requirements are alike, you define a code for both (B). You can attach these book codes to accounts as attributes. This results in separate permutations of accounts and book codes in which you simultaneously record related transactions under local, corporate, or both rules.

You can choose to associate a single book code with one account value. Using this method, a unique account value must be created for each book code. For example, book code C would be associated with account 500001, book code L with account 500002, and book code B with account 500003, to record related amounts in the same ledger but effectively in different books. When you choose this method, book code appears as a read only field on the journal entry page when you enter the account, and book code cannot be modified at time of entry.

PeopleSoft software also provide an Allow Book Code Override option at the installation level on the Account page that enables you to choose book code and account combinations at the time of journal entry. Using this method, you can associate any of your book codes with the same account value to record related amounts in the same ledger—effectively creating separate books in the same ledger while using the same account. The main advantage of this method is that fewer account values are required. You must set up book code defaults for an account; you can then update the book codes by selecting from a drop down list at the time of journal entry.