An account tracks the money spent or earned by business activities, such as:
- Paying bills
- Receiving payments
- Generating payroll checks
- Purchasing supplies
- Paying rent
Account numbers are needed for all vouchers, adjustments, and payments made via accounts payable. You use the Chart of Accounts form to set up account numbers to use throughout the system to record, track, and report costs. The Chart of Accounts must contain all accounts payable-related account numbers before transaction distributions and postings can occur. The general ledger is tied to other parts of the system through the Chart of Accounts and the journals. The following table displays fields on the Chart of Accounts form and provides a brief description of each:
|Account||The account number. The account number has a maximum length of 12|
alphanumeric characters and cannot include leading spaces
|Description||A description to identify the account number. This description can be up to forty|
characters of text and will display on several accounts payable reports and in the
general ledger. For example, Supplies Expense Allocation or Petty Cash.
|Account Type||The account type determines how an account is categorized. You can select from|
the following options:
-> Owner’s Equity
The type will be used in reports and processing throughout the general ledger. For
example, the net income amount on financial statements is calculated using the
domestic currency amounts for revenue and expense accounts.
|Account Class||The account class assigned to the account. Account classes are not required, but|
they can be used by financial reporting tools, if desired.
|Effective Date||The date you want the account to become active.|
|Obsolete Date||The date you want the account to become inactive.|
|Allocations||Defines accounts with percentages via a sub-file.|