Question

State the various types of coding methods.

Answer 1

Following are the three methods of codification.

• Sequential codes: In sequential code, numbers and/or letters are assigned in consecutive order. These codes are applied primarily to source documents such as cheques, invoices, etc. A sequential code can facilitate document search.
  For example:

1. Code – Accounts
2. CL001 – ABC LTD
3. CL002 – XYZ LTD
4. CL003 – SCERT

• Block codes: In a block code, a range of numbers is partitioned into a desired number of sub-ranges and each sub-range is allotted to a specific group. In most of the cases of block codes, numbers within a sub–range follow a sequential coding scheme, i.e., the numbers increase consecutively.
  For example:

1. Code – Dealer type
2. 100 – 199 – Small pumps
3. 200 – 299 – Medium pumps
4. 300 – 399 – Pipes
5.  400 – 499 – Motors

• Mnemonic codes: A mnemonic code consists of alphabets or abbreviations as symbols to codify a piece of information.
  For example:

1. Code – Information
2. SJ – Sales Journals
3. HQ – Head Quarters