---
kind: "section"
citation: "49 C.F.R. § 1242.05"
title: "49"
number: "1242.05"
heading: "Operating expense account number notation."
url: "https://uscodex.org/cfr/49/1242.05"
---

# §1242.05. Operating expense account number notation.

- (a) The operating expense account numbers consist of a six-digit coding structure divided into three two-digit groups. The first two-digit group denotes natural expenses; the second group denotes activities/subactivities for freight, passenger or common service; and the third group signifies applicable function assignment.
- (b) **For reporting purposes, four natural expense categories are utilized.** The categories are: salaries and wages (account 11-XX-XX); material, tools, supplies, fuels and lubricants (account 21-XX-XX); purchased services (accounts 31-XX-XX to 41-XX-XX, inclusive); and general (accounts 61-XX-XX to 65-XX-XX, inclusive, 51-XX-XX, 52-XX-XX, 53-XX-XX and 12-XX-XX).
- (c) The symbol “XX” in the first two-digit group is used throughout the separation instructions to denote more than one natural expense associated with the same activity/subactivity-function account structure. For reporting purposes, the natural expense account numbers represented by “XX” include:
- (d) The “30” natural expense designation indicates a summation of specific purchased service accounts that are reported in total rather than individually. The specific accounts under the way and structures activity except for administration functions include 39-1X-XX, repairs billed by others, Dr.; 40-1X-XX, repairs billed to others, cr.; and 41-1X-XX, other purchased services. For the equipment activity excluding administration functions, the “30” designation denotes the summation of 39-2X-XX and 41-2X-XX.
- (e) The “41” natural expense designation (other purchased services) is the purchased service category of the “XX” code for the following:
  - (1) **Way and structures activity administration—** function accounts,
  - (2) **Equipment activity administration—** function accounts,
  - (3) Transportation activity expense accounts, and
  - (4) **General and administration activity expense accounts.**
- (f) The “61” general natural expense designation is applicable to all accounts with the “XX” symbol except transportation, train and yards accounts (XX-(33/43/53)-XX).
- (g) The natural expense account number “50” is used throughout the separation instructions to indicate the summation of accounts 52-XX-XX, Other casualties, and 53-XX-XX, Insurance, that are reported as one item, “Casualties and Insurance,” (50-XX-XX).
- (h) The number “98” in the function account group (last two digits) is used in the separation rules to designate the summation of a natural expense consisting of more than one functional assignment that is reported as one item. This includes Repairs Billed to Others, Cr.—Equipment (40-2X-XX). For example, the locomotive subactivity contains accounts 40-(21/24/26)-40, 40-(21/24/26)-41, and 40-(21/24/26)-48 which are treated as 40-(21/24/26)-98.

## Notes

### Authority

Authority: 49 U.S.C. 1321, 11142.

### Source

Source: 43 FR 7637, Feb. 24, 1978, unless otherwise noted.