The Accounting System
The accounting system is the heart of the AIRPEX package. It is used by all modules.
There are two main approaches to accounting functions that we have encountered. Either system will work with the BMS programs. How you set up your chart of accounts determines which approach you are using.
The "generic" system usually described in bookkeeping manuals
consists of some variation of the following account structure:
The system we consider more informative for companies where costs are
directly related to revenue is:
For example, with the generic system freight revenue might be credited to account 4100 and freight expense debited to account 5100. Using the second approach the freight revenue would be credited to account 4100 and the freight expense would be debited to the same account. In this way discrepancies are much more noticeable. Profitability is more easily seen and comparisons to previous years or periods are more obvious.