Accounts ranging

The ranging of Accounts in Chart of Accounts is based on the following principles:

  • All accounts primarily ranged based on their relation and reflection in financial and operational reports. Besides, the following principles are applied.
  • Assets are arranged in order from more liquid to less liquid (liquidity of assets + urgency of assets)
  • Liabilities are arranged in order of maturity of obligations (from short-term / current liabilities to long-term), and based on urgency of long-term and short-term liabilities
  • Capital is arranged according to the degree of withdrawal (withdrawal)
  • Revenues and Expenses are arranged by gross volume and importance or basis of the business as a whole.

Revenue and Expense accounts are the most important and are highly detailed, additional principles of ranging are applied:

  • Operating costs first, then overhead (non-operational costs), then miscellaneous costs, then other costs (so called underline Income and Expenses, or I&Es that reflected in Other I&E of Income Statement – taxes, depreciation etc).
  • Departmental revenue and expenses first, then general revenue and expenses, then miscellaneous revenue and expenses
  • Single Departmental expenses first, multi-departmental expenses then
  • Inside of departmental costs: Direct costs first (e.g. Cost of Sales), then indirect costs

Departments ranged with the following principles:

  • Operational departments first (Rooms, F&B, Wellness and Spa etc), Non-operational then (A&G, Finance)
  • According their gross volume, significance or basis of the business as a whole: Rooms, F&B, other departments
  • Revenue centers first (Rooms), then Profit centers (F&B), then Cost Centers with recovered expenses (House Laundry, Staff Dining), then pure Cost Centers