General Ledger: Account Setup

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Go to Ledger > Accounts Setup

Watch the video: Adding a General Ledger Account

Accounts are the backbone of your company’s records, as they organize your transactions. Whether you are working with a new company or an existing one, you will probably want to add or change some accounts to suit your needs. For example, if you are starting with a template of accounts, you may want to change generic revenue accounts, like Sales Stock A, to names directly related to your business.

You can create main accounts and sub accounts. Sub accounts total into the main account. You can produce financial reports at the main or sub account level.

Hover the mouse over the different menu options. If the cursor changes to a hand (), then click to go to the subject.

General_Ledger

GL_Account_Setup

Menu	Description
Save	To save changes
New Main Account	To add a new account. (To add a sub account, select the main account by clicking on the row (account) then right-click on the row selector and select Add Sub Account)
Account Types	Select to get a list of all the types. You can specify the print order on the trial balance by dragging and dropping the account types
Sales & Cost of Sales Link	Use this option to link a Sales account to a Cost of Sales account. This will have an effect on how your income statement will look.
Chart of Accounts	Select to print.
Help	This manual
Video	Select to watch the help video

Columns	Description
Description	Name of the account
Account type	A drop down list will be displayed, select the account type you want to use.
Default VAT	Select the VAT type applicable for this account. VAT types can be changed/added in the TAX Setup module. SI also allows you to set default tax types for the, inventory and supplier accounts.
Allow Post	Select if you want to post to this account. Usually you won't allow journals to be posted to for e.g. the Debtor and Creditor control accounts. If you added sub accounts to a main account, do not post to the main account if you want to use the budget module. The budget module use the main account to sum the sub-account values.
Reconcilable	Select if you want to reconcile this account to the transactions on your bank statement. Example, bank accounts, loan accounts, credit-card etc. Only accounts that is checked will show in your Bank Reconciliation form as well as in your Cash Journals.
Additional Code	Can be used to put in your previous systems account codes

Right-click actions

Remember, first select the row you want to work with by clicking on the row selector.

To delete or add an account, right-click on the row selector. You won't be allowed to delete accounts that have transactions.

To sort accounts, click on the column headings.

To import your general ledger accounts select the extra tab.

Note: You can merge two accounts, see corrections.

General ledger accounts are divided into five categories and split up for reporting purposes (see below).

Account Types	Code	Notes and Account Examples
Owner's Equity		Capital is comprised of net income plus the money that the owner originally invested.
Capital (Equity)	Cap	Owner's equity (which includes capital investments and drawings), Opening balance equity, and retained earnings.
Capital Retained Earnings	CapR	Retained Earnings.
Additional paid-in capital - common	CapAp	Money received from investors for common stock.
Additional paid-in capital - preferred	CapApp	Money received from investors for preferred stock.
Preferred Stock	CapPS	Stock whose holders are guaranteed priority in the payment of dividends
Assets		Assets represent what an individual or entity owns
Assets CTG	AssetCGT	Assets with a capital gains tax implication
Current Assets	AssetCA	Employee Cash Advances, Prepaid Expenses, Allowance for bad debts, Other
Accounts receivable	AssetAccRec	Accounts Receivable (Debtors). Must be used separately to correctly calculate the financial ratios.
Non-Current Assets (Fixed Assets)	AssetNC	Depreciable assets your company owns that aren't likely to be converted into cash within a year, such as Financial Assets, Property, Plant & Equipment, Furniture etc.
Inventory (Stock)	AssetI	Inventory or Stock
Cash Assets	AssetCA	To handle accounts payable (supplier payments) correctly as well as financial ratios
Intangible Assets	AssetInt	Long term: Business properties, such as brands, franchises, trademarks and patents
Bank	Bank
Liabilities		Liabilities represent what is owed
Long Term Liabilities	LiabL	Loans and obligations with a maturity of longer than one year, usually accompanied by interest payments.
Accounts Payable	LiabAccPay	Trade and Accounts Payable (Creditors). Must be used separately to correctly calculate the financial ratios.
Current Liabilities	LiabC	Liabilities that are scheduled to be paid within one year, such as sales,sales tax, payroll taxes, accrued or deferred salaries, and short-term loans.
Liability Leases	LiabCle	Leases Payable (current)
Liability - Dividends Payable	LiabCdi	Distributions of earnings to shareholders.
Liability - Taxes	LiabCta	Accrued income, property, and sales taxes payable to city, state, and federal governments.
Liability - Notes Payable	LiabCN	Money that your business owes that will be paid within a year, including bank notes, mortgages, and vehicle payments.
Income		Income is money that is earned
Income Gain / Loss on Asset Disposal	IncAGL	The gain or loss on disposal of fixed assets
Income Dividends	IncD
Income Dividends Foreign	IncDF
Income Non Operating	IncNO	Interest Income
Income Foreign	IncF	Foreign Income
Income Not Taxable	IncNT
Income Other Operating	IncOP	Rent, Prov. bad debt, Profit On Disposable Assets
Income Sales	IncOpSales	Income from trade. The main source of money coming into your company.
Expenses		Expense is money that is spent
Cost of Sales	COS	The cost of goods and materials held in inventory and then sold.
Direct Material Cost	CosDir	Direct materials cost the cost of direct materials which can be easily identified with the unit of production.
Cost of Sales - Direct Labour costs	CosLab
Expenses Depreciation	ExpeDep
Expenses Income Tax	ExpeIT
Expenses Non-Operating	ExpeNOP	Example: Interest
Expenses Operating	ExpeOP	An expense incurred in carrying out an organization's day-to-day activities, but not directly associated with production.
Expenses Other	ExpeOT

Rearrange Accounts by dragging and dropping. The order displayed will be used in the trial balance.

To rearrange the accounts go to Ledger > Account Setup and select Account Type on the menu bar. Click on the row and drag

GL_Account_Type_Drag

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