The Higher Account code is automatically generated from a simple algorithm. If the company uses another system to generate the Higher Account code, ignore this topic. See the following example:
Accounts Registered:
Account Code | Account Class | Higher Account |
1 | Summarized | None |
11 | Summarized | 1 |
111 | Summarized | 11 |
11101 | Summarized | 111 |
11101001 | Detailed | ??????? |
The generation algorithm takes the following steps:
a) From account code 11101001, it takes 1 digit/character from the right of this code, hence: 1110100.
b) Searches for code 1110100. Since this account does not exist in the example, it continues searching.
c) From account code 1110100, it takes 1 digit/character from the right of this code, hence: 111010.
d) Searches for code 111010. Since this account does not exist in the example, it continues searching.
e) From account code 111010, it takes 1 digit/character from the right of this code, hence: 11101.
f) Searches for code 11101. In this case, account 11101 exists and is a summarized account. Therefore, the system assumes this Account as a Higher Account of Account 11101001.
Tip: "Head" group accounts, such as "1 - Assets, 2 - Liabilities" do not usually have a Higher Account; hence, this field must not be filled. |