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Upgrade to Microsoft Edge to take advantage of the latest features, security updates, and technical support. Understanding the General Ledger and Chart of Accounts
In this articleThe general ledger (G/L) stores your financial data, and the chart of accounts (COA) shows the accounts all general ledger entries are posted to. Business Central includes a standard chart of accounts that is ready to support your business. General ledger setup and general posting setupThe setup of the general ledger is at the core of financial processes because it defines how you post data. Two pages in particular play an important part in configuring your finance processes:
The chart of accountsThe chart of accounts shows all general ledger accounts. From the chart of accounts, you can do things like:
You can add, change, or delete general ledger accounts. However, to prevent discrepancies, you can't delete a general ledger account if its data is used in the chart of accounts. Also, starting with 2022 release wave 2, you can also block the accidental deletion of accounts in sensitive periods. Learn more in the Deleting accounts section. Account categoriesYou can personalize the structure of your financial statements by mapping general ledger accounts to account categories. The G/L Account Categories page shows your categories and subcategories, and the general ledger accounts assigned to them. You can create new subcategories and assign those categories to existing accounts. You can create a category group by indenting other subcategories under a line on the G/L Account Categories page. Category groups make it easy to get an overview because each grouping shows a total balance. For example, you can create subcategories for different types of assets, then create category groups for fixed assets versus current assets. You can define whether specific types of reports must include the accounts in each subcategory. The account categories help define the layout of your financial statements. ExampleFor example, the default balance statement has a subcategory for Cash under Current Assets. If you want the balance statement to consider petty cash and checking, you need to take the following steps:
When you choose the Generate Financial Reports action—or the next time the report is generated—your balance statement will show the following lines:
Note If you create a G/L account without assigning an account category, when you assign the account to a posting group Business Central automatically assigns the account category from the G/L account immediately above the account in your chart of accounts. However, to include the new account in your financial reports, you must choose the Generate Financial Reports action on the G/L Account Categories page. Alternatively, you can open the G/L account card page, specify the account category, and then regenerate your financial report. Get a quick overviewThe Chart of Accounts page displays accounts in a hierarchical list that offers fast access to the key information for each account. However, the list is static, and if you have many accounts, you might have to scroll to view different accounts. If you just want a quick overview of the basics, such as net changes and balances, the Chart of Accounts Overview page is a useful alternative. The column layout on the page is now the same as you'll find on the Chart of Accounts page (though with fewer columns), so you won't have to reorient yourself. You can expand or collapse the hierarchical levels to condense the view. To make it easy to switch between the pages, the Chart of Accounts Overview page is available from the Chart of Accounts page. Access to create and edit accounts and account categoriesIn a small organization, such as the CRONUS demonstration company, most users can edit the chart of accounts, except those users with a TEAM MEMBER license. However, larger organizations typically use roles and permissions to limit access to editing the chart of accounts. If you're an administrator, or have the Business Manager or Accountant role, you can control user permissions to give the right people access to the relevant tables. Learn more in the To get an overview of a user's permissions section. See alsoSet Up or Changing the Chart of Accounts Find free e-learning modules for Business Central here FeedbackSubmit and view feedback for Which of the following options are true regarding editing a chart of accounts in QuickBooks?Answer. Answer: To do this from the Chart of Accounts screen, find the account you want to edit and click the drop-down menu next to the words Account History, then choose Edit to make your changes.
When setting up a new QuickBooks company What is true about the chart of accounts?When setting up a new QuickBooks account, which of the following is TRUE about the Chart of Accounts? It is possible to add more accounts after starting a new company. This is correct.
What are 2 reasons for customizing a client's chart of accounts in QuickBooks Online?Customizing your chart of accounts will provide you with the ability to create custom reports for sales, income, cost of goods sold and business operations expenses. The cleanup and editing of an existing chart of accounts is included with this service.
What are 2 ways you can clean up chart of accounts to reduce the number of accounts shown?How to Clean Up Your Chart of Accounts. Sorting.. Make Accounts Inactive.. Make Vendors Inactive (or Products, Services etc). Merge Accounts.. Map New Products and Services to Accounts.. |