Contents - Index

Maintaining ledger accounts

Workshop Management needs to use ledger accounts (income) when recording payments.

Before defining ledger accounts complete Company set up.

A set of accounts is installed with the software.  Review that and modify as required.

For more detail on setting up ledger accounts see Accounts Maintenance.

Once the correct company and department are displayed on the form each new account is linked to that company and department combination. 

General Comments

Once an account has been set up the account code may not be edited.  An account may only be deleted if it is not in use. That means if there are no transactions (bank, cash, recurring transactions, journals)  using it.

Think of how to track income and expense.  For example, if you are a plumber and suspect roofing jobs are the main source of income, you may want to set up a separate account for income from roofing jobs.  If you sell several lines, consider the advantages of setting up income (and possibly expense) accounts for each line.

To maintain company-level accounts leave the Department field clear.   Company-level accounts are for such things as leases, insurance, loans, etc that are not specific to a department.  Accounts for departments should be for things that directly relate to the cost and income of the department.

Linking accounts to departments allow you to produce both departmental and company, consolidated, profit and loss statements.  Trial balances and balance sheets are produced for the entire company.

Form Use
  • Consider most fields compulsory.
  • Type - select either expense of income.  This is used to calculate profit and loss.
  • Report Group - select expenses, income or overhead.  This enables financial reports to be broken into three groups.
  • When adding an account the default is to be active
  • The Account Code must be unique for the company currently active. This means, if you are using numbers, and have multiple departments, the account codes could be something like the following:
      1000 - Sales for department 1
      1001 - Sales for department 2 
  • Check Affects tax amount if the account is part of your profit and loss for tax purposes.  If the account is not checked it will appear as a balance sheet item in the trial balance and on the balance sheet.  
  • Apply G.S.T check this if the account is to have G.S.T. applied.  Most accounts will.  Those that won't are payroll, donations, tax payments, etc, and domestic accounts.  This setting overrides the G.S.T. status for the company and department.  That is, if both have it enabled, any account to which it does not apply results in transaction entries for that account not having G.S.T. calculated.  To change an account's G.S.T. status do so immediately after you calculate G.S.T.
  • The Description field is not compulsory, but you are advised to fill it in as it is likely some account codes will be similar and the description helps to identify the correct one.  The description prints on transaction and account reports.
  • Department - optional.  If an account is linked to a department the department cannot be removed, or changed, once transactions have been entered for that account.
  • Accountant's Ledger Code and Bal Code are not compulsory.  Fill both fields to export transactions to QuickBooks or M.Y.O.B.
  • Domestic Allocation is compulsory to split transactions between business and domestic or if the account is for domestic purposes only.  When checked (and if you are maintaining an expense account) two additional fields become visible and active, they are Domestic Percent and Allocate to Domestic (Account). Only expense accounts can be split. 
  • Domestic Percent enables the allocation of the amount of a transaction to domestic purposes. Only active if Domestic Allocation is checked and the account is for expenses.  When entering amounts for a split account (G.S.T. adjustments) you need only enter the total amount; the business amount is calculated automatically based on the percent entered here.  If the account is wholly domestic enter 100 into the field.
  • Allocate to Domestic, if checked, activates a dialog box when the record is saved - if adding a record.  Select a domestic account to update when you enter transactions for an account with a domestic allocation.