Use the Distribution Codes setup window to add, edit, or delete distribution codes you use to distribute bank transaction details to your general ledger accounts.
Distribution codes represent the different types of transactions that you enter in Bank Services, such as interest earned on deposits, interest charges on loans and overdrafts, monthly or annual service charges, charges for NSF checks, and transfers of funds from one bank account to another. They also represent the default account or group of accounts for the different types of transactions you record, but they are usually easier to remember and quicker to enter than the account numbers themselves.
Distribution codes identify the offsetting general ledger accounts to debit or credit when you post bank entries, but they are usually much easier to remember than an account number. For example, a distribution code for interest income, INT, would debit a bank account and credit the Interest Income account.
In the Bank Options window, you can specify a distribution code to use as the default for new entries in the Bank Entry window.