General ledger codes, often called GL codes, categorize financial transactions so your organization can stay organized, compliant, and audit-ready.
But managing GL codes can quickly become time-consuming and error-prone especially without the right tools.
In this blog, we’ll discuss what GL codes are, how they support fund tracking and GASB compliance, and how DebtBook’s Lease and Subscription Management solutions simplify GL code management by automating journal entries and integrating code setup directly into your workflows.
General ledger codes are numeric or alphanumeric codes used to categorize every financial transaction an organization makes, whether it’s a lease payment or subscription fee.
Each code corresponds to a specific account, such as cash, revenue, or expenses, making it easier to organize and track your financial activity.
GL codes are like a financial filing system. When structured correctly, they help ensure every transaction lands in the right “folder,” allowing you to maintain accurate records, generate reliable reports, and stay compliant with accounting standards.
Unlike private companies that focus on profit and loss, public entities must often track where every dollar comes from and how it’s used.
GL codes enable that level of detail by assigning specific codes to each fund (like a general fund or capital projects fund), each purpose (such as maintenance or instruction), and each account type (like expenses or assets).
This structure not only supports day-to-day bookkeeping but it’s also vital for ensuring that restricted funds are used appropriately.
But the impact goes beyond internal tracking.
Well-structured GL codes make it easier to:
When it comes to implementing new accounting rules, like those under GASB 87 and 96, having the right GL codes in place can make or break your ability to stay compliant.
These standards require specific journal entriesthat reflect the nature and structure of your lease and subscription-based IT arrangements (SBITAs) which is something that can only be done reliably if your GL coding is set up correctly.
GL codes provide the framework for accountability, transparency, and compliance.
GL codes aren’t just random strings of numbers, they follow a structure that reflects how your organization manages and reports financial data.
GL codes can be built from a number of components:
When combined, these segments create a full GL code string that tells a complete story about each transaction.
For example:
1100-530-6250
Might represent:
This structure is more than just a reporting convenience, it’s important for accurate financial tracking and compliance. It ensures that journal entries align with your chart of accounts.
At DebtBook, we help accounting teams build these structured GL codes into every agreement through allocations.
Whether you use a two-part format (Fund + Account) or something more complex (say, a twelve-part format), our system supports the setup you need so journal entries are automatically generated with the correct coding, every time.
When you clearly define each segment up front, your organization can reduce errors, save time, and confidently support audits and financial reporting.
Managing GL codes manually can be time-consuming and error-prone, especially when you’re juggling multiple funds, departments, and compliance requirements.
DebtBook’s Lease and Subscription Management solutions eliminate that complexity by integrating GL code management directly into your workflows.
With DebtBook, journal entries are generated automatically based on the requirements of GASB 87 and GASB 96.
As long as your agreements are properly allocated and verified, the system pulls the complete and correct codes to produce accurate, ready-to-post entries.
Here’s how it works:
With DebtBook, you can use journal entry exports as a checklist to verify that every code in your chart of accounts has been created in the system.
You can capture all of your GL information, allowing you to allocate your leases and SBITAs in order to automatically provide split journal entries and calculations with GL codes included.
Whether you’re onboarding a new agreement or preparing for audit season, DebtBook ensures your GL codes are doing their job, so you can focus on yours.
Whether you're preparing financial statements, responding to an audit, or submitting reports to oversight bodies, having well-structured GL codes and reliable journal entries can make all the difference.
DebtBook helps you get there by automating the most time-consuming parts of the process, while still giving you control over how financial data is categorized and reported.
With GL codes built directly into your workflows, you’re not just saving time, you’re improving the quality of your financial records.
Here’s how it helps:
When your GL codes are integrated into a centralized system like DebtBook, you’re not just keeping up, you’re staying ahead.
The result is more efficient reporting, fewer surprises at audit time, and an accounting team that can produce timely and accurate work instead of scrambling for details.
A: A general ledger code is a numeric or alphanumeric identifier used to categorize financial transactions in an accounting system. It typically includes components like fund, purpose, and account to provide detailed financial reporting.
A: Yes. DebtBook supports multiple GL code formats, and up to 15 different segments, depending on your organization's chart of accounts and GL structure.
A: While there are common GL code structures and account classifications (such as assets, liabilities, revenues, and expenses), GL codes are not universally standardized across all organizations. Each organization typically defines its own chart of accounts based on its reporting needs, internal structure, and compliance requirements.
A: A modern treasury and accounting software like DebtBook allows users to assign allocations to agreements, then automatically generates journal entries using the correct code structure, reducing errors and improving efficiency.
Disclaimer: DebtBook does not provide professional services or advice. DebtBook has prepared these materials for general informational and educational purposes, which means we have not tailored the information to your specific circumstances. Please consult your professional advisors before taking action based on any information in these materials. Any use of this information is solely at your own risk.