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    Home >> Chart of Accounts Summary

     

    Seven Digit Chart of Accounts

    A seven digit chart of accounts is used by those companies that not only have multiple departments, but also multiple divisions or locations, for each of which the management team wants to record separate accounting information.  This requires the same coding structure used for the five-digit system, except that two digits are placed in front of the code to signify a different company division.  These new digits also apply to balance sheet accounts, since most organizations will want to track assets and liabilities by division.  The following chart of accounts, which identifies accounts for divisions in Atlanta and Seattle, and which continues to use the engineering and sales departments, is an example of how the seven-digit account code structure is compiled.

    Account No. Division Department Description
    10-00-010 Atlanta xxx Cash
    10-00-020 Atlanta xxx Petty cash
    10-00-030 Atlanta xxx Accounts receivable
    10-00-040 Atlanta xxx Reserve for bad debts
    10-00-050 Atlanta xxx Marketable securities
    10-00-060 Atlanta xxx Raw materials inventory
    10-00-070 Atlanta xxx Work-in-process inventory
    10-00-080 Atlanta xxx Finished goods inventory
    10-00-090 Atlanta xxx Reserve for obsolete inventory
    10-00-100 Atlanta xxx Fixed assets – Computer equipment
    10-00-110 Atlanta xxx Fixed assets – Computer software
    10-00-120 Atlanta xxx Fixed assets – Furniture and fixtures
    10-00-130 Atlanta xxx Fixed assets – Leasehold improvements
    10-00-140 Atlanta xxx Fixed assets – Machinery
    10-00-150 Atlanta xxx Accumulated depreciation – computer equipment
    10-00-160 Atlanta xxx Accumulated depreciation – Computer software
    10-00-170 Atlanta xxx Accumulated depreciation – Furniture and fixtures
    10-00-180 Atlanta xxx Accumulated depreciation – Leasehold improvements
    10-00-190 Atlanta xxx Accumulated depreciation – Machinery
    10-00-200 Atlanta xxx Other assets
    10-00-300 Atlanta xxx Accounts payable
    10-00-310 Atlanta xxx Accrued payroll liability
    10-00-320 Atlanta xxx Accrued vacation liability
    10-00-330 Atlanta xxx Accrued expenses liability – other
    10-00-340 Atlanta xxx Unremitted sales taxes
    10-00-350 Atlanta xxx Unremitted pension payments
    10-00-360 Atlanta xxx Short-term notes payable
    10-00-370 Atlanta xxx Other short-term liabilities
    10-00-400 Atlanta xxx Long-term notes payable
    10-00-500 Atlanta xxx Capital stock
    10-00-510 Atlanta xxx Retained earnings
    10-00-600 Atlanta xxx Revenue
    10-00-700 Atlanta xxx Cost of goods sold – materials
    10-00-710 Atlanta xxx Cost of goods sold – direct labor
    10-00-720 Atlanta xxx Cost of goods sold – manufacturing supplies
    10-00-730 Atlanta xxx Cost of goods sold – applied overhead
    10-10-800 Atlanta Engineering Bank charges
    10-10-805 Atlanta Engineering Benefits
    10-10-810 Atlanta Engineering Depreciation
    10-10-815 Atlanta Engineering Insurance
    10-10-825 Atlanta Engineering Office supplies
    10-10-830 Atlanta Engineering Salaries and wages
    10-10-835 Atlanta Engineering Telephones
    10-10-840 Atlanta Engineering Training
    10-10-845 Atlanta Engineering Travel and entertainment
    10-10-850 Atlanta Engineering Utilities
    10-10-855 Atlanta Engineering Other expenses
    10-10-860 Atlanta Engineering Interest expense
    10-20-800 Atlanta Sales Bank charges
    10-20-805 Atlanta Sales Benefits
    10-20-810 Atlanta Sales Depreciation
    10-20-815 Atlanta Sales Insurance
    10-20-825 Atlanta Sales Office supplies
    10-20-830 Atlanta Sales Salaries and wages
    10-20-835 Atlanta Sales Telephones
    10-20-840 Atlanta Sales Training
    10-20-845 Atlanta Sales Travel and entertainment
    10-20-850 Atlanta Sales Utilities
    10-20-855 Atlanta Sales Other expenses
    10-20-860 Atlanta Sales Interest expense
    10-00-900 Atlanta xxx Extraordinary items
    20-00-010 Seattle xxx Cash
    20-00-020 Seattle xxx Petty cash
    20-00-030 Seattle xxx Accounts receivable
    20-00-040 Seattle xxx Reserve for bad debts
    20-00-050 Seattle xxx Marketable securities
    20-00-060 Seattle xxx Raw materials inventory
    20-00-070 Seattle xxx Work-in-process inventory
    20-00-080 Seattle xxx Finished goods inventory
    20-00-090 Seattle xxx Reserve for obsolete inventory
    20-00-100 Seattle xxx Fixed assets – Computer equipment
    20-00-110 Seattle xxx Fixed assets – Computer software
    20-00-120 Seattle xxx Fixed assets – Furniture and fixtures
    20-00-130 Seattle xxx Fixed assets – Leasehold improvements
    20-00-140 Seattle xxx Fixed assets – Machinery
    20-00-150 Seattle xxx Accumulated depreciation – computer equipment
    20-00-160 Seattle xxx Accumulated depreciation – Computer software
    20-00-170 Seattle xxx Accumulated depreciation – Furniture and fixtures
    20-00-180 Seattle xxx Accumulated depreciation – Leasehold improvements
    20-00-190 Seattle xxx Accumulated depreciation – Machinery
    20-00-200 Seattle xxx Other assets
    20-00-300 Seattle xxx Accounts payable
    20-00-310 Seattle xxx Accrued payroll liability
    20-00-320 Seattle xxx Accrued vacation liability
    20-00-330 Seattle xxx Accrued expenses liability – other
    20-00-340 Seattle xxx Unremitted sales taxes
    <20-00-350 Seattle xxx Unremitted pension payments
    20-00-360 Seattle xxx Short-term notes payable
    20-00-370 Seattle xxx Other short-term liabilities
    <20-00-400 Seattle xxx Long-term notes payable
    20-00-500 Seattle xxx Capital stock
    20-00-510 Seattle xxx Retained earnings
    20-00-600 Seattle xxx Revenue
    20-00-700 Seattle xxx Cost of goods sold – materials
    20-00-710 Seattle xxx Cost of goods sold – direct labor<
    20-00-720 Seattle xxx Cost of goods sold – manufacturing supplies
    20-00-730< Seattle xxx Cost of goods sold – applied overhead
    20-10-800 Seattle Engineering Engineering -- bank charges
    20-10-805 Seattle Engineering Engineering -- benefits
    20-10-810 Seattle Engineering Engineering -- depreciation
    20-10-815 Seattle Engineering Engineering -- insurance
    20-10-825 Seattle Engineering Engineering -- office supplies
    20-10-830 Seattle Engineering Engineering -- salaries and wages
    20-10-835 Seattle Engineering Engineering -- telephones
    20-10-840 Seattle Engineering Engineering -- training
    20-10-845 Seattle Engineering Engineering -- travel and entertainment
    20-10-850 Seattle Engineering Engineering -- utilities
    20-10-855 Seattle Engineering Engineering -- other expenses
    20-10-860 Seattle Engineering Engineering -- interest expense
    20-20-800 Seattle Sales Sales -- bank charges
    20-20-805 Seattle Sales Sales -- benefits
    20-20-810 Seattle Sales Sales -- depreciation
    20-20-815 Seattle Sales Sales -- insurance
    20-20-825 Seattle Sales Sales -- office supplies
    20-20-830 Seattle Sales Sales -- salaries and wages
    20-20-835 Seattle Sales Sales -- telephones
    20-20-840 Seattle Sales Sales -- training
    20-20-845 Seattle Sales Sales -- travel and entertainment
    20-20-850 Seattle Sales Sales -- utilities
    20-20-855 Seattle Sales Sales -- other expenses
    20-20-860 Seattle Sales Sales -- interest expense
    20-00-900 Seattle xxx

    Extraordinary items

    Related Topics

    3-digit chart of accounts
    5-digit chart of accounts
    Alphanumeric account codes
    Chart of accounts overview
    Reduce the chart of accounts
    Standardize the chart of accounts