Data Processing – Ford Online Accounting Manual

Expenses

DATA PROCESSING	EXPENSE ACCOUNT
	8680

Expense of data processing, including depreciation, rental and maintenance of equipment and vendor charges for systems services.

			Jrnl.	Dr.	Cr.

Monthly payment for accounting service from data processing vendor			CD
	Data Processing			8680
		Cash in Bank—General			1001

Monthly rental of data processing equipment			P
	Data Processing			8680
		Accounts Payable—Trade			2100

Operators’ salaries should be charged to Account 8020, Salaries—Administrative.
Parts inventory control service purchased should be charged to Account 7690, Inventory Control—Parts.
For departmentalization purposes, data processing costs applicable to a specific operating department should be charged to that department. Costs applicable to the total dealership should be distributed to Unapplied Expenses. See Departmentalization for further information.