Main account information
A main account is an account in the general ledger that is used to record financial transactions, balances, or totals that pertain to assets, liabilities, revenues, expenses, and owner's equity. Select information is specific to the main account, such as the main account category, debit and credit controls, and related accounts.
General ledger > Chart of accounts > Accounts > Main accounts
If an account is used only for debiting or for crediting, then select a value in the DB/CR requirement drop-down menu. This selection determines the result when you leave the Transaction text field in a transaction entry process. The pointer in the general journal is automatically positioned according to the choice. If the field is left blank, a debit is automatically proposed.
You need to select a main account type when creating the main account on the Main accounts page.
The following main account types determine how the account is used in the chart of accounts.
- Profit and loss, Revenue, and Expense – Used as posting accounts. The profit and loss account is used for recording revenue and expenses. The sum of all operating accounts determines the year-end results. The revenue and the expense accounts have the same function as the profit and loss account. The balances for these main accounts are rolled into the year-end result account during the Opening transactions process. Expense accounts are used by budgetary control.
- Balance sheet, Asset, Liability, and Equity – Used as transaction accounts that record the amounts that a company owns or owes. If you use asset, liability, and equity accounts, the accounts can have a higher degree of specification and you can more precisely structure reports about the company balance. The balances for these main accounts roll forward to the new year during the Opening transactions process.
- Total – Use this to add account intervals. For example, frequently it is useful to make a total of a range of revenue accounts to obtain a quick overview of the total sales for the current period when you run a financial statement.
- Reporting – Used for financial statement reporting. If you selected Reporting in the Type field, select how the account is used for reporting. You can select Header, Empty header, or Page header.
Legal entity overrides
Not all main accounts are valid for all legal entities, and a main account might be relevant only for a specific period. In this scenario, you can use the Legal entity overrides section to identify the companies that the main account should be suspended for, the owner, and the period when the dimension is active. The overrides at the shared level can't be more restrictive than the overrides at the legal entity level.
Balance control accounts
Use the Balance control accounts page to monitor the current and expected balance on an account as transactions are entered in a journal. You are not required to set up balance control accounts to work with Finance. The balance control accounts help you track the current and expected balance of liquidity accounts. These include bank accounts and petty cash accounts. You can select the balance control criterion for the transactions on the current account in the Balance control list.
For example, when transactions are entered in a journal for the account, if Debit control is selected, the system makes sure that total amount of the journal transactions do not make the balance for the account go into a credit.
Only select asset or liability accounts in this field because profit and loss, revenue, and cost accounts are set to zero when you create opening transactions.
By selecting the Do not allow entry check box you prevent a user from manually entering this account in a journal entry. If you select the Suspended check box, you prevent all postings to the selected main account. You cannot suspend an account that is assigned as a budget group account on another account.