How To: Creating & Maintaining a G/L Account (15-02)

Overview

This tutorial describes how to create and maintain a General Ledger account.

Step-by-Step

Click image to enlarge.

  1. In the ‘Account#’ field, enter an account number that is not on file to create a new account. To make changes to an account, enter the existing account number. To search for an account, click the search icon to the right of the field.
    NOTE: The account number is entered in two, six-character fields. Only the significant digits need be entered, since the system automatically appends zeros to the entry if necessary.

  1. Complete (or make changes to) the remaining fields as described below.

    2. Title
    Enter the title for the General Ledger account number. The title can be indented to make the Financial Statements easier to read.

    EXAMPLE:

    Notice that in the above example, the headings are not indented. The breakdowns under the headings are indented one space and the total lines are indented two spaces. The indentation is your company’s decision, depending on how the Financial Statements are to look.

    The next five fields are commonly referred to as the Formatting Codes or “TABST” codes. These codes control the cosmetic printing of Balance Sheets and Income Statements. They also determine if an account number is one that can be posted to a subtotal account or title account.

    Trans Code
    Select a transaction code from the drop-down list.

    0 – Heading Only
    Select this option if the account is a non-posting, financial statement heading (e.g. ‘Current Assets’).

    1 – Postable (Summary & Detail)
    Select this option if the account is a posting account.

    2 – Postable (Summary & Detail)
    Select this option if the account is a posting account (identical to option 1).

    3 – SubTotals on Balance Sheet
    Select this option if the account is a Total or Subtotal on the Balance Sheet and Income Statement.

    4 – Postable (Supressed on Summary)
    Select this option if the account is a posting account (same as “1” except printing is suppressed on Income Statement and Balance Sheet when “Summary Only” option is selected).

    5 – Income Summary
    Select this option if the account is an Income Summary account. This transaction code can only be used once for each 6 digit grouping.

    6 – SubTotals on Income Statements
    Select this option if the account is a total or subtotal(s) that are only valid on the Income Statement.

    Account Type
    Select an account type from the drop-down list.

    1 – Asset
    Select this option if the account is an Asset account.

    2 – Liability
    Select this option if the account is a Liability account.

    3 – Equity
    Select this option if the account is an owner’s equity account.

    4 – Income (Not included in %)
    Select this option if the account in an Income account.

    5 – Expense
    Select this option if the account is an Expense account or Cost of Goods Sold account.

    6 – Income (Included in %)
    Select this option if the account is an Income account included in totals from which %’s are calculated.

    Column
    From the drop-down list, select the column for Balance Sheet Printing.

    1 – Left column
    2 – Center column
    3 – Right column

    Left Margin Spaces
    Enter the vertical spacing for the financial statements. Valid entries are:

    “1” – Print on next line.
    “2” – Skip 1 line before printing.
    “3” – Skip 2 lines before printing.
    “4” – Skip 3 lines before printing.
    “5” – Skip 4 lines before printing.
    “6” – Skip 5 lines before printing.
    “7” – Skip 6 lines before printing.
    “8” – Skip 7 lines before printing.
    “9” – Skip to new page before printing.

    Total Level
    Enter a total level code. Valid entries are “1” through “9.”

    This code is used in conjunction with the transaction code to determine the amounts that are printed with subsequent subtotal accounts.

    Accounts with a transaction code of “4” are totaled into a subtotal account having an equal or greater total level. Subtotals will be totaled into total accounts having a greater total level. Subtotal/total accounts in the balance sheet require a transaction code of “3” in conjunction with the total levels.

    The totals then accumulate the subtotals with lesser total levels. Total accounts with a transaction code of “3” and equal total levels will not add together. To get a grand total of all total accounts, the total level in the grand total account must be greater than the total levels in the total accounts.

    Subtotal/total accounts in the Income Statement function as do balance sheet accounts, but have a transaction code of “6”. To get a grand total of all total accounts, the transaction code must be a “3” in the grand total account and the total level must be larger than the total level in the total accounts.

    The grand totals also include any accounts with a transaction code of “1” or “2” and a total level lower than its total level (Both balance sheet and Income Statement).

    EXAMPLE:

    Date
    The date is automatically updated by the Journal Entry Audit/Update selection (15-06) indicating date of last account activity in MM-DD-YY format.

    Beginning Balance
    Current Month
    Current YTD
    These fields are maintained by the system.

    Last YTD
    The ‘Last Year-to-Date’ is automatically updated by Month End Close. It contains the Last YTD amounts compared to the same point in time as the current fiscal YTD. This field will not contain an amount until after processing on the system for 13 months.

  1. Click ‘Ok.’

Click image to enlarge.

  1. If the account you just created was a branch Profit and Loss statement (Income or Expense Account Type), a window appears with the message ‘Add account to all income statements?’
    1. Click ‘Yes’ to create this account for all branches and also for the ‘ZZ0000’ consolidated account.
    2. Click ‘No’ if you do not want to create this account for other branches or for the ‘ZZ0000’ consolidated account.
    3. Click ‘Just “ZZ”‘ to create this account for the ‘ZZ0000’ consolidated account, but not for any other branches.
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