Setting Up Distribution Codes

Distribution codes simplify the process of generating accounting entries by defining valid combinations of chart of account field values.

To set up distribution codes, open Admin > Financial > Distribution Code > Add.

Description of Page

Enter a unique Distribution Code and Description for the distribution code.

If this distribution code is a holding account used for payables cash accounting, check the Use For Non-Accrual Accounting switch and select the accounting method from the Accounting Method list. Select the priority level for the distribution code from the Accounting Priority list and enter the actual payable Accounting Code. The system will transfer monies from the holding account to the distribution code when the cash event occurs. Transfers will occur based on priority and debt age. For more information, refer to Payables Cash Accounting and Deferred Accrual Accounting.

Define the GL Account Algorithm used by the system when it interfaces financial transactions that reference this distribution code to your general ledger (refer to GLDL - Create General Ledger Download for more information about the download process). The logic embedded in this algorithm constructs the actual GL account number. If you haven't done so already, you must set up this algorithm in the system. To do this:

• Create a new algorithm (refer to Setting Up Algorithms ).
• On this algorithm, reference an Algorithm Type that constructs your general ledger account number.

The Write Off Controls control how the system writes off debt associated with the distribution code. Refer to The Ramifications of Write Offs in the General Ledger for an explanation of how these fields are used at write-off time.

• Define the Division and SA Type of the service agreement to which bad debt associated with this distribution code should be transferred at write-off time. Note: only SA Types with a special role of Write Off may be selected.
• When the system transfers debt to the write-off service agreement defined above, the distribution code defined on this Division / SA Type will be debited unless you turn on the Override Switch. When this switch is turned on, the system overrides the distribution code of the transfer to side of the adjustment with the distribution code associated with the debt being written off. You'd typically turn this switch on for liability distribution codes because you want to debit the original liability account when the debt is written off. Note: if this switch is on the system also overrides the characteristic type / value with the respective value associated with the debt that is being written off.

Use the GL Account Details scroll to define how the system constructs the GL account associated with the distribution code when it interfaces the financial transaction to your general ledger. For each distribution code, enter the following information:

• Enter the Effective Date of the following information.
• Define whether, on the Effective Date, the following information is Active or Inactive. The system will only use effective-dated information that is Active.
• Enter the GL Account that the general ledger uses to process financial transactions tagged with this distribution code.
• Enter the Statistics that should be passed to the general ledger during the GL interface for this GL Account. For example, if this Distribution Code is used to record electric, residential revenue, the Statistics would be kWh if you record the number of kWh in you general ledger along with the dollar value of the revenue.
• If you have configured your installation options to indicate that fund accounting is practiced, define the Fund associated with this distribution code. If your installation options indicate that fund accounting is not practiced, the field is not visible.
• Use the characteristics grid to define characteristic values for the Distribution Code. This grid supports all standard characteristic types (such as, Adhoc, Predefined, File Location, and Foreign Key) from the Distribution Code GL Account Characteristics table. To modify a characteristic, simply move to a field and change its value. The following fields display:
  • Characteristic Type. Indicate the type of characteristic.
  • Characteristic Value. Indicate the value of the characteristic.