Transactions to Code was designed to store all pending transactions we previously sent through a spreadsheet each month into one place within Edge that you could access anytime, anywhere. The process is easy and quick to suggest coding compared to downloading a spreadsheet and then resending that in an email to us. That being said, there are a few non-traditional items you may want to understand as you are suggesting coding.
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Let's Start With a Quick Refresher
Pending Transactions from Ceterus are stored in the Action Center under Transactions to Code. The For Client Review view shows what transactions Ceterus needs more clarity on before coding to your books. This is where you will be able to clarify vendor names, suggest categories to be coded to, or add comments about each transaction for your accountant to review.
Suggestions can be made for the following fields:
- Vendors may be listed if the transaction provides a clear vendor. If not, this will say Select a Vendor. In either case, you can adjust this by typing in a vendor name through the Vendor dropdown
- Categories are populated based on the Chart of Accounts for each location, with the exemption of some accounts such as Fixed Assets. If you do not see a category or are not sure which category a transaction belongs, you can choose I Don't Know or review more examples of non-traditional transactions here
- Provide more details related to the transaction for the accounting team to review. We recommend adding comments if a Vendor name is not populating, if you choose I Don't Know in the Category dropdown, or if there is other information we should know about the transaction overall
The Category is where this article will focus today for Non-Traditional Transactions.
As you are looking at your line items, you'll want to choose a Category from your Chart of Accounts to code this transaction. If you do not see the account in the Category drop-down that you are looking for, you can select I Don’t Know and then provide detailed comments by clicking on Comments.
That being said, there are a few transactions that we want to guide you in coding to help you understand where these might go on your financials
Deposits/Transfers from the Bank
Deposits traditionally come from the following sources and coded accordingly:
- Owner Contributions
- Vendor Refunds - search for the appropriate expense such as:
- Operating Supplies
- Office Supplies
- Insurance Claims
- Traditionally under Repairs and Maintenance since it is used to offset cost to repair
Withdraws/Transfers from the Bank
Withdraws are traditionally coded to the following categories:
- Owner Distribution/Withdraw
- Office Expense or Operating Expense for use of cash out of the drawer or petty cash type transactions
Venmo or Paypal Transactions
Traditionally, these are paid to a specific Vendor, but the Vendor is not visible in the memo of the transaction which does not give Ceterus enough detail to code. These are traditionally amounts paid to:
- Contract Labor
- Repairs and Maintenance
- Reimbursements of Travel Expenses (Travel) or Mileage (Auto Expense)
- Employee Recognition
- Large amounts over $100 should run through Payroll
Long Term (Fixed) Assets
Some transactions over $2,500 for Vendors flowing through accounts like Repairs and Maintenance or Office Supplies will be added to your Transactions to Code to validate a Longer Term Asset was not purchased (i.e. Computer Software, Equipment, New Furnace, Air Conditioners, etc). These need to be coded to the appropriate accounts (Computer Equipment, Equipment, Leasehold Improvements, etc).
Note: The Ceterus Method
Ceterus chose a $2,500 threshold since the IRS will allow you to expense items that fall below this amount. Purchasing 10 computers at $1,000 each could also be expensed. As well, split payments on an asset should be added together to determine if it is over or under the threshold (i.e. two partial payments for equipment of $1,250 each should be capitalized)
Multi-Line Entry Transactions
While reviewing your For Client Review transactions, you may see transactions related to Multi-Line Entries. Due to the nature of these transactions, these entries will subsequently not have the a Vendor or Category dropdown option to select coding. Instead, Multi-Line Entries will need to resort to Comment only by following the below steps:
- Click View Details under Category
- A Comment Box will populate with the full details of the Multi-Line Entry
- In the comment box, leave a comment related to the Multi-Line transaction
- Click Add Comment to submit
- This will remove the item from your list of transactions to review