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Define Each Account
Getting Started > Setting Up a New Company > Accounting Setup > Create New Chart of Accounts > Define Each Account

Glossary Item Box

 

Introduction About:

Defining each account would take up a considerable amount of time as this would mean starting from scratch. You would have to set up details for each account as well as the default posting accounts for each module, the GL class templates for entities such as customers, suppliers and inventory items, and the financial layouts. But when planned carefully and set up correctly, you will have your chart of accounts set up exactly they way you need it.

If you intend to create your chart of accounts by using a chart of accounts template, see Define Each Account

Before setting up your account codes, you may amend the default account sub groups and account segments to use. See Also: Accounting Setup > Other Accounting Setup > Account Segments | Account Sub Groups

 

Terminology Steps:

To set up your chart of accounts by defining each account,

  1. From the Chart of Accounts screen of the New Company Wizard, click on the New button. Or, go to the Accounting module and select Account Code under the New menu. The New Chart of Accounts Wizard will display.
  2. Follow the steps in the New Chart of Accounts Wizard:

Step 1
Click Next button to start.

 

Step 2 – select to define each account
Select “Create user-defined Accounts” from the options. Click Next button to continue.

 

Step 3 – select account structure 
Select the account structure you require for your chart of accounts and click Next button to continue.

  1. If “Simple Structure”, segmentation need not be set up for the accounts.
  2. If “Segmented Account" is selected, each segment type needs to be defined. If Segmented Structure” is selected, select the Character Separator for your segment and choose whether to apply the segment to only expense or revenue accounts or not.

 

Step 4 – Define each account

  1. Enter the Account Code and Account Description. The Account Code should be unique for each account. The wizard will detect any duplicates in the account codes.
  2. Select the Account Group and Account Sub Group.
    Note:
     If the Account Sub Group you need is not in the list, you can define new account sub groups from this step.  To do this, select any account sub group in the list. Drill down on the link to display the Account Sub Group setup form. See Also: Accounting Setup > Other Accounting Setup > Account Sub Groups.
  3. Select the Account Type.
    Note:
     If the Account Type you need is not in the list, you can define new account types from this step. To do this, drill down on the Account Sub group in the Sub Group column to display the Account Sub Group setup form. See Also: Accounting Setup > Other Accounting Setup > Account Sub Groups.
  4. If the account is to be assigned for a bank account or petty cash account, tick the checkbox in the Bank / Petty Cash Ac column.
  5. Click Next button to continue.
  6. See Step-5-a if you choose to create a simple account structure. See Step 5-b if you chose to create a segmented chart of accounts.

 

Step 5-a – Simple Account Structure
If you select to create a simple chart of accounts structure from Step 3, you will be brought to the Account List. In the Account List screen, you can still make changes to your account codes and descriptions. You may select account for bank and petty cash accounts and put in budget details. More on the Account List in Step 6. Click on the Next button to continue. See Step 7.


 

Step 5-b – Segmented Structure
If you chose to create a segmented Chart of Accounts, you may define the account segments in this step.

  1. You will find default account segments for “Country”, “Location”, and “Department”. You can change the default account segments as required. See Also: Accounting Setup > Other Accounting Setup > Account Segments.
  2. You may add to the default segments. You may create up to 7 segment types. You may use the Up and Down arrows to select what segment you want to appear first.
  3. Define the segment values for each segment type you created. Enter a Segment Code and Description for each segment value, e.g. US – United States
  4. This option lets you create the combinations that actually go together. For example, New York only has the options for the Sales Department.
  5. Click Next button to view the generated list of segmented accounts. See Step 6. 

     

Step 6 – Account List
The Account List from the defined accounts or the selected template is displayed in this screen. Here are some of the things you can do from the Account Code list. Click Next button to go to the last step of the wizard.

  1. Exclude accounts - Untick the checkbox next to the Account Code column to exclude the account. 
  2. Change the account description - Type in the description in the Account Description column.
  3. Assign the accounts to bank accounts /petty cash accounts - Each bank account you will setup needs a unique account code assigned to it. From the Account List, you will be able to select which accounts will be assigned to the bank accounts or petty cash accounts. Include an account to assign to a bank account or petty cash account by clicking on the checkbox in the Bank / Petty Cash Ac column next to the account. See Also: Banking Setup > Bank and Bank Accounts.
  4. Setup account budget information - Select the Fiscal Year to which the budget will apply.  Enter the whole budget amount to each applicable account for the specified fiscal year. See Also: Working with Accounting module > Manage Chart of Accounts > Set Up and Maintain Account Budgets

Step 7 
Click the Finish button to exit the Chart of Accounts Wizard and generate the chart of accounts.

 

How To How To:

ShowView the Chart of Accounts

  1. From the Chart of Accounts screen of the New Company Wizard, click on the Edit button. Or, go to the Accounting module and select Chart of Accounts under the Tools menu. The Chart of Accounts form will display.

 

ShowManage Chart of Accounts

See Also: Working with the Accounting Module > Manage Chart of Accounts

 

ShowAdd Account Budget Details

See Also: Working with the Accounting Module > Manage Chart of Accounts > Set Up and Maintain Account Budgets

 

ShowAdd New Account Codes

See Also: Working with the Accounting Module > Manage Account Codes > Add New Account Codes

 

ShowDelete account codes

Note that only account codes that are not assigned in the Default Accounts or GL class templates or used any transaction may be deleted.

  1. Go to the Accounting Module.
  2. Select Chart of Accounts under the Tools menu. The Chart of Accounts form will display.
  3. Select the account in the list and drill down to go to the Account Details tab.
  4. Click on the Delete option in the toolbar menu.
  5. Choose Yes in the prompt to delete.

 

 

Next Steps Next Steps:

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