Income and expense codes are saved in a directory of revenue and expenses that has a hierarchical structure. This hierarchical structure allows revenue and expenses to be grouped according to the lines of the profit tax statement. Therefore, the directory contains all revenue and expense codes that are used in tax reporting.

The turnover for expense or income codes in the upper level is determined by the turnover for expense or income codes in the lower levels, using the same method that is used to calculate the tax return.

You can create expense or income codes in the expense codes directory or in the dimensions directory. An entry should be made in one of these directories, and an identical entry should also be made using the synchronization function.

1. Click General ledger> Setup> Expense codes> Expense codesto open the Expense and income codesform.

2. Press CTRL+N to create a new line.

3. In the Expense codefield, enter an expense or income code.

   Note
   The numbering of the revenue and expense codes must follow the hierarchical structure.

4. In the Namefield, enter a description of the expense or income type.

5. In the Parent codefield, select the parent expense or income code if the given code is a child code.

6. In the Dimension numberfield, enter the dimension value for the selected expense or income code.

7. In the Short descriptionfield, enter a description of the expense or income code.

8. In the Sales tax codefield, select the value that corresponds to the profit tax, which will be used when calculating the DTL and DTA according to the given expense code.

9. In the Code typefield, select the type of code to represent the expense or income.

10. Select the Lockedcheck box to prevent the synchronization of the selected expense or income code with the dimension code.

11. Click the Setuptab to select the registers that are used to calculate the totals.

    Note
    You cannot select registers for parent expense or income codes.

12. In Available registers, select the registers that are used to calculate the totals and move the required registers to Selected registers.

13. Click Defaultto set the registers for the expense or income codes to default from the following options:

    • Default– Set up the registers for the selected expense or income code, the data from which will be used to calculate the totals.

    Note
    These registers will be selected if the specified expense or income code or its parent code was selected when setting up the register and if the given or parent expense or income code was used when setting up a subsequent calculation of standard expenses.

    • By default – all– Set up the registers for all expense or income codes. Data from all codes will be used to calculate the totals.

14. Click Ledger account setupto set up expense code relations with a ledger account.

15. Select the Tree controlcheck box to display the hierarchy of the registers in a tree structure.

16. Press CTRL+S or close the form.