Transparent Account Codes and Financial Report Formulas
Transparent Account Codes and Financial Report Formulas
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To make collecting data easier, we organize chart of accounts and entries by using transparent codes.
1. Chart of accounts and entries
a. Purchase value, upward revaluation, downward revaluation - 4th digit,
By internal act of accounting the accounts in class 0 - Long term assets are spread on 6 digits accounts. Structure of chart of accounts is up to 4th digit number designed by recommendation of auditors 
, but place 5 and 6 is used for internal purpose.
After the recommended chart of accounts each analytical account of class 0 and accounts values as accumulated depreciation, is at 4th digit split on:
0 - Purchase value,
1 - Upward Revaluation,
2 - Downward Revaluation.
b. Owned by company, financial lease - 5th digit
Fifth digit is reserved (by internal rules) for 0 - FA entries owed by company and for 1 - FA entries in financial lease.
The example can be expand on additional accounts: acquired free of charge FA, FA acquired in group companies...).
c. Utilized tax deduction, without any benefit from tax deduction - 6th digit
Company decide (by internal rules) that FA will be posted separately those used as tax deduction positions (0) and those which are not case for tax deduction (1).
This is the way to easy check if we need to increase taxable revenue in fiscal year FA was sold.
Example for account number 0400 - Purchase value of FA:
040001 - Purchase value of FA - no impact on tax calculation
040002 - Purchase value of FA - tax deduction
When designing template for balance sheet, the sum of both accounts will be FA position: #O0400%#.
2. Usage in formulas and reports
We can always find or calculate value for account on the day defined in report. We will use Wildcard characters. e can use them as report criteria or their values write in formulas.
a. Report criteria
Different reports can be prepare by using wildcard characters . There are some samples.
| What data we are looking for? |
Which expression will be used? |
| criteria , where data is entered |
expression to enter |
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Trial balance for class 0 accounts for assets owned by company *
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"Account" |
0___1_ or 0___1% |
| Trial balance for class 0 accounts for assets as tax deduction at corporate tax calculation |
"Account" |
0____2 or 0____2% |
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Trial balance for class 0 accounts for assets owned by company and as tax deduction at corporate tax calculation
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"Account" |
0___12 or 0___12% |
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Trial balance for class 0 and group 43 (depreciation) accounts for assets, owned by company and as tax deduction at corporate tax calculation
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"Account"
"Account"
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0___12%
43__12%
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Financial Report Check: by financial report template calculate amount for class 0 accounts, taken in financial lease. The example is simplified and do not show accounts for impairment, depreciation ... which should be also included.
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"Account" |
0___1_ or 0___1% |
*when we have chart of accounts with 7 or 8 digits, the proper formula would be 0___0% or 0___0___, to capture all analytic accounts. The same consideration applies for further examples.
The same consideration and formulas can be use for account cards.
b. Formulas
The above mentioned terms can be used in formulas as well as in financial reports.
1. Example - financial report
| What kind of information we are looking for? |
What kind of formula will we use? |
| Explanation |
Formula |
| Have we sold any of the fixes assets where it has been used tax relief at corporate income tax calculation? |
We are looking for credit records on the accounts. |
#K0____2%# |
| Further: we want to collect only the credit entries on the account acquisition. Accounts strengthening and weakening, we want to be excluded from consideration. |
We want to exclude accounts accumulated depreciation for value adjustments due to increase / impairment. We know that they are accounts represented by the digit 2 and 3 in 4th place. |
#K0___12%# |
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Further: we want to collect only group 0 account, representing tangible and intangible assets, but excluding groups representing the accounts of accumulated depreciation and where credit entries are expected, even if there is no disposal of fixed assets.
At the same time , we will eliminate long -term investments, loans and receivables.
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We will list groups of account to which we are looking for information, and in this follow previously adopted criteria for the display.
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#K00__12%# + #K02__12%# + #K04__12%# |
| Further, the formula simplified so that instead of a single enumeration used term for listing, entered in square brackets. |
Instead of lists of groups will be the second digit of these typed in square brackets and to simplify and shrink the term. |
#K0[0,2,4]__12%# |
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Of course we can, because this is an internal financial report, each of the categories cited specifically that display result will have structure according to desired categories.
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Each group enter in a special position of the financial report. |
See picture bellow. |
As presented here, all credit review summarizes changes in account groups 00, 02 and 04, we have for the accurate overview of the information prepare account card.
2. Example - template for automatic posting
Formulas are very useful also in templates for automatic posting. Chart of account must be therefore organize properly as in this case.
Composing formulas is the same one that was shown in the financial report, but we have available an additional parameter for summation in templates, using the result of previous position.
The template that is shown in the picture below, for assets in financial lease (accounts with number 2 on 5th place) summarizes:
- debit balance of the acquisition value of fixed assets by acquisition account for groups 00, 02 and 04 (the result will be positive amount),
- debit balance of accumulated depreciation of fixed assets accounts for groups 01, 03 and 05 (the result will be negative amount),
- debit balance of depreciation accounts for assets in financial lease for group 43.
