Chart of Accounts is where you set up and maintain the accounts for the general ledger.
Studio Designer has a standard chart of accounts already entered. You can use this chart of accounts or change it to meet your needs.
Although the chart of accounts can be updated at any time, we recommend making the majority of your changes before you begin using Studio Designer.
Account: The description of the account. This name will be used to identify general ledger transactions throughout Studio Designer.
Reference: The reference used to identify the account. This may be used to reference a number in an outside accounting application. The chart of accounts sorts by this number.
Although Studio Designer will allow you to create an account without a reference, it is important that all accounts have a reference assigned. If not, these accounts may not show up as expected when selecting accounts for checks, receipts, journal entries, etc.
Type: The type of general ledger account. Asset, Liability, Equity, Income, Expense
Code: The code used to group general ledger accounts for financial statements.
Department: If this account belongs to a specific department, enter the department name here. An Income Statement can be printed with a department filter.
There is no master list of departments to select from. It's important that department names be consistent. Any difference will create an additional department. Because general ledger transactions are not actually assigned to departments, the department in the Chart of Accounts can be changed at any time.
Sub Account Of: This identifies if this account is the sub-account of another account. This is used to sum multiple accounts on the financial statements.
Sub Accounts must be assigned references immediately following the master account and must be of the same "Type" and "Code" or financial statements will produce unpredictable results.
For example, this will work:
Auto - 5300
Auto Mileage - 5302 Sub account = Auto
This will not work:
Auto - 5300Required: Required identifies required accounts that cannot be deleted.
Cash Account: Cash Account defines if this is a cash account for reporting purposes.
Credit Card: Credit Card defines if this is a credit card for reporting purposes.
Note: Both Cash Account and Credit Card are used primarily for placement in the Balance screen. Select Accounting, select Balance.
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