Can you imagine standing in the middle of a snow blizzard without a COAT on? No… me either. It doesn’t sound like a particularly fun way to spend an evening and let’s face it, no one wants to be exposed to the elements. But guess what? Your data is the same. Think about all the consequences for your health if you were to be stuck out in freezing, stormy weather without a layer of protection on: snotty nose, shivering or, even worse, hypothermia and frostbite.
Finance departments use GL codes to track spend. We’re looking at items like office supplies, marketing or maybe a specific project within the business. However, what finance are looking for and what procurement are looking for can be two quite different things.
The Trouble With GL Codes
Firstly, if you're only using your general ledger codes, I can almost guarantee they are wrong! In my experience working with GL codes, I would say 90% of them are unreliable. You'll almost always find something classified under a GL that shouldn't be there.