I need input on GL coding for assets on purchase orders. Is it a best practice to use one code and have the accountant reclass to the proper GL code, or have the buyer place the correct GL code of the asset on the PO?


In most companies assets require additional accounting—depreciation schedules, perhaps numbering, inventorying, etc. And with assets, in many instances the purchaser might not know the proper GL code. If an incorrect code is applied, it can cause more work for accounting than if the purchasers use one code.

So our experts favor the purchasers using a single “asset” code that alerts accounting or the assets department that an asset has been purchased. Then accounting or assets can assign the correct GL code and do the other work required to get the asset set up properly.

Have more questions? Submit a request