General ledger Utility functions

G/L Account Group Maintenance

Last Revised: 02/25/14

G/L Account Group Maintenance is for the purpose of grouping similar type of accounts on your General Ledger financial reports.  

Accounts generally fall into one of the following types:

Account Types
A	Assets	Resources owned by the company including Cash, Accounts Receivable (what customers owe you), Inventory (goods held for sale)
L	Liabilities	Your obligation to pay others including Accounts Payable (amounts owed to vendors), Notes Payables (amounts owed to banks), and Mortgage Payable (amount owed for purchased property)
Q	Equity	Value of a property or interest in excess of claims against it including Retained Earnings
R	Revenue	Includes Income from the sales of goods or services
C	Cost of Sales	Cash or cash equivalent sacrificed for goods or services that are expected to provide benefits to your company
E	Expense	The cost incurred in the normal course of business to generate revenues including employee salaries, utilities, etc.
T	Tax	Charges imposed by governmental authorities for public purposes
O	Other Income & Expenses	Other sources of income (and expenses) such as Interest Earned

 

Enter the account number and description of the first account in each "group" of accounts and identify its type.   For example:

Account Number	Description	Type
100	Current Assets	A Asset
149	Other Assets	A Asset
160	Amortization	A Asset
164	Fixed Assets	A Asset
200	Current Liabilities	L Liability
232	Tax	L Liability

Using the above example, all accounts between 100 and 164 would be grouped together as Assets on a financial report, all accounts between account 200 and 270 would be grouped together, and so on.  General Ledger financial reports would print a subtotal for each of these groups.

The Chart of Accounts Listing (on the G/L menu) will include the group description.