G/L Accounts

 

This topic describes how to set up general ledger accounts, and how to use the G/L Accounts and Budgets feature to add and edit general ledger accounts.

 

General ledger account types

 

General ledger accounts are designated as Asset accounts, Liability & Equity accounts, Revenue accounts and Expense accounts.  In the default Chart of Accounts, account types are numbered as follows:

 

Account type

Account numbers

Asset

1000-range

Liability

2000-range

Equity

3000-range

Revenue

4000-range

Expense

5000 and 6000-ranges

 

 

Accounts are further broken down into three categories: header accounts, posting accounts and total accounts.

 

Header accounts - Used to differentiate between sections on financial reports.  In the default Chart of Accounts, account number 1000, Assets is an example of a header account.

 

Posting accounts - Accounts to which transactions are entered.  In the default Chart of Accounts, account number 1015, Petty Cash is an example of a posting account.

 

Total accounts - Used for totaling sections on financial reports.  In the default Chart of Accounts, accounts 1035, Total Cash, and 1500, Total Assets are examples of total accounts.

 

 

General ledger account number formats

 

Account numbers must be at least three digits long, but can be up to six digits long.  They can be alphanumeric, they must all be the same length, and they must be numbered consistently for reports to sort correctly.  That is, do not make some account numbers numeric and others alphanumeric.  Also, keep in mind that short, numeric account numbers make data entry faster.

 

 

General ledger account settings

 

When configuring your Chart of Accounts, enter the following information for each general ledger account:

 

Account number

3 to 6 digits long, and can be alphanumeric.

Account description

Up to 35 characters long.

Record code

Record codes are used for formatting the layout of the Chart of Accounts report.

Account type

Account types differentiate between the different types of posting accounts.

 

Type 1 - Asset accounts

 

Type 2 - Liability and Equity accounts

 

Type 3 - Revenue accounts

 

Type 5 - Expense accounts

Total level

Total levels control the totaling and formatting of the Chart of Accounts and are only used for total accounts (accounts with record code 9).

Page break

Leave this field blank except for accounts that should start a new page on financial reports.  On the default Chart of Accounts, notice that the Liabilities & Equity header account has a Y.  Financial reports will start a new page with this account.

Summary

The summary option is used to indicate that totals, rather than individual accounts, will print on financial reports.  It is currently used to summarize a series of accounts on the Operating Statement report only.

Inactive

General ledger accounts can be designated inactive if you do not intend to post to them.  By default, inactive accounts do not print on financial reports.

Bank

The Bank field enables you to specify whether the account is a bank account.  If the account is a bank account, select General or Trust.  Otherwise, select No.

 

 

Adding general ledger accounts

G/L Account Budgets

Tips for G/L accounts