Accounts (Ledger)

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A Chart of Accounts or the list of accounts consists of the account numbers. Each of these accounts is linked to a certain account type. It is important to note the types of accounts, which will be reflecting in your List of Accounts (Chart of Accounts) as you will create, edit and delete them in Action → Accounts:

Account type

Brief description of the Account type

Bank accounts

Bank accounts should be linked to a Receipts and Payment Journal batch.

General ledger accounts

Accounts are aligned to either an Income / Expense or Balance sheet account type.

The Balance sheet account type, needs to include the following 3 control accounts;

Retained income / earnings.

Creditor's control account.

Debtor's control account.

Tax accounts

Accounts containing the Tax percentages and dates for which those tax percentages are effective. These are the Output Tax and Input Tax codes.

These are country specific and should contain the VAT / GST / Sales Tax terminology and codes as prescribed by the tax authority of your specific country.

Creditor (supplier) and Debtor (customer / client) accounts, are created, edited or deleted in Action ribbon.

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Brief description of the account type

Creditors

Creditor  (Supplier) accounts containing the details of the creditors, remittance advice messages, contacts, land terms. It also contains detail of processed transactions and a list of purchase documents (i.e. Purchases, Supplier returns and Orders).

The total of all individual accounts in the Creditor's ledger will be displayed as the Creditor's control account in the General ledger.

Debtors

Debtor (customer / client) accounts containing the details of the debtors, statement messages and terms. It also contains detail of processed transactions and a list of sales documents (i.e. Invoices, Credit notes, Quotes and Point-of-Sale Invoices).

The total of all individual accounts in the Debtor's ledger will be displayed as the Debtor's control account in the General ledger.

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