System Control 4. Fund Balance Operating Ledger 5. Transfer Account Codes are organized in a hierarchy for each account type. The hierarchy has four levels and the lowest level is the recording level. The highest level, Level 1, is used as a sorting criteria, in the Operating Ledger report.
Every transaction requires an account code.
For balance sheet account transactions, an account and fund code are required. Balance sheet accounts include assets, liabilities, clearing accounts, fund balance, and General Ledger control accounts. Revenue codes begin with the number 5. Use of the fund code with these revenue accounts provides and accounting by specific fund source. Expenditure account codes begin with the number 6.