Transaction Classifications

Transaction Classifications are used to classify or categorize accounting transactions in TBS.  In most cases, the transaction classifications are defined by the client and map to Accounting General Ledger codes.  However, there are special, system defined transaction classifications that perform additional processing when selected.

Managing Transaction Classifications

Users can manage Transaction Classifications using the Transaction Classification Administration tool.

System Defined Transaction Classifications

TBS defines “special” transaction classifications.  The system will perform additional processing when posting a transaction with one of these classifications as described below.

Credit Transaction Types:

Transaction Classification 800: Credit Taxes Only - This transaction should be used when taxes were incorrectly applied to a Tax Exempt customer.

Transaction Classification 889: Invoice Credit – This transaction should be used for full or partial invoice credits. 

Transaction Classification 955: Bad Debt Write-Off - This transaction should be used when you can no longer collect a past due balance from an account.  This transaction(s) will bring the account to a zero ($0.00) balance and reverse all unpaid invoices and associated taxes. 

802 Credit on Write Off Account – This Transaction Classification is used to track Credits on accounts that have been written off.  There is no special processing that occurs for this type of classification.

Debit Transaction Types

Transaction Classification 988: Bad Debt Reversal - This Debit Transaction Classification should be used to reverse a previous Bad Debt Write Off.  This process will look for the most recent set of “955 Bad Debt Write-Off” credit records and will create reversing debit transactions to restore the account balance to the original value.

801 Payment on Write Off Account – This Debit Transaction is automatically selected when a user enters a payment on an account that is in “Write-Off” status.  The system will pop up a warning message to alert the user to this case. 

When entering a Transaction on the Transaction Posting Page, after you select this classification:

  • The system will perform a “998 Bad Debt Reversal” as described above.
  • The payment will then be processed as normal.
  • A pop up message will alert the user to this situation.  It is important to note that the account is no longer written off.

803 Debit on Write Off Account – This Transaction Classification is used to track Debits on accounts that have been written off.  There is no special processing that occurs for this type of classification.