The Chart of Accounts
Creating An Account
Click on the Chart of Accounts function in the General Ledger command centre. The following window will be displayed.
Click on the tab for the type of account you wish to create.
Click on the
New
button. The
Edit Account/Account Information
window will appear on your screen.
Select (by clicking in the radio button) what sort of account this is: a
Header Account
,
Detail Account
or
Detail Cheque Account
.
Header Accounts are the summation of the detail accounts below them. They are
non-postable, which means that you can not make a General Journal entry using
these accounts. They display totals only.
Detail accounts are postable ie you can use them in General Journal entries.
Account Classification : This tells you what type of account you are creating. It is filled in by M.Y.O.B.
Account Number : You enter a four digit number identifying your account here. If you enter less than four numbers, M.Y.O.B. will fill up the number with zeros. The only four digit number you can not use is 0000, as this is used to identify the level 1 account for this account type.
Note: The prefix is set for you by M.Y.O.B. It is determined by the account type. It is important that sub-accounts are numbered so they appear directly beneath their section header in the account list. For example, if I have an account Office Furniture, and it is the sum of the accounts Chairs, Tables, Computers and Faxes, the Office Furniture account must appear just before the Chairs, Tables, Computers and faxes accounts in the account list. Otherwise these accounts will not be totalled to the Office Furniture account.
Account Name : The account name can be up to thirty characters.
Opening Balance : Enter the opening balance for this account.
Current Balance : This shows $0.00 for new accounts. For other accounts it shows the current balance of the account.
Click on the white arrow after Current Balance to see the Account Inquiry Register window (see the General Ledger Analyst section for more details on this window).
Click on the New button to record this account in the Chart of Accounts. The screen will be cleared and you can enter another new account of the same type.
Click on the Budgets button to set monthly budgets for this account (see the section on Budgets for more information).
Click OK to record the account and/or to exit back to the Accounts List.
A Note On Detail Cheque Accounts
If the new account is an asset detail account, you can specify that it is a Detail Cheque Account in the top half of the Edit Accounts/Account Information window. If it is a liability detail account, it can be specified as a Credit Card Account . The appropriate option is selected if the account has cheques written from it and/or money deposited into it. The accounts affected are usually the bank account(s), the credit card accounts, the petty cash account and the cash drawer account.
The accounts specified as detailed cheque accounts or detailed credit card accounts will be displayed in the pull down list in the Write Cheques and Make a Deposit functions in the Chequebook command centre.