Of the many different transaction types you can have in Accounts Receivable, all transactions fit into one of eight basic categories. These categories are identified by the first number of the six-character Transaction Code: 2, 3, 4, 5, 6, 7, 8, or 9. Transaction types either increase, decrease, or have no effect on the customer’s balance.

Because Transaction Codes direct the system to adjust the customer's balance (and any other affected accounts), you must have at least one for each type of transaction you will complete before you can post.

The system automatically applies a transaction type in some cases. If you assign a customer a balance forward amount, that is a type 0 transaction. When invoices come from Sales, the invoice total is applied to the master record as a type 1 transaction.

The Transaction Code specifies the type of transaction and gives the code a unique identifier. Establish your Transaction Codes in two steps. First, identify the type of transaction the code will apply to by entering the corresponding starting number. Second, follow this with a unique five character identifier.

For example, perhaps you want to create a transaction code for credit card payments. You could create the code 4CRCRD. The “4” indicates to the system that the transaction is a payment transaction and the “CRCRD” is the part of your code that means “credit card.”

You can set up as many Transaction Codes as necessary to meet your needs.