Summary
This module described how to structure and manage financial accounts effectively in your organization's general ledger system.
Additionally, you learned about the following key points:
Main account categories and types - Help you classify general ledger accounts for reporting and grouping purposes. You can customize and link categories to specific accounts. Use main account types to determine how you want to use and report on accounts.
Main account information - Main accounts record financial transactions and balances that are related to assets, liabilities, revenues, expenses, and equity. Specific details include debit/credit controls and related accounts.
Legal entity overrides - Main accounts might be valid for specific legal entities or periods only. Legal entity overrides allow you to customize based on legal entity requirements.
Balance control accounts - Use these accounts to monitor current and expected balances for specific accounts, especially liquidity accounts such as bank or petty cash accounts. These settings ensure balance control and prevent manual entry or suspension of accounts.
Allocation terms - Allocation redistributes account balances to destination accounts or dimensions, which is useful for expense distribution to cost centers.
Main account validation options - Four posting validation settings ensure accuracy and compliance for each account. The settings include currency code, user ID, posting types, and sales tax posting types.
Main account closing options - These options define closing processes and balance distribution methods for main accounts, including the process of transferring balances to different fields during closing.
Financial tags and account aliases - Help you track subledger data for analysis and ledger settlement. They allow the creation of user-defined fields on transactions.
Accounts for automatic transactions - Handle automatic postings for integrated modules in Finance. They specify accounts for rounding differences, retained earnings, and discounts. Errors might occur if you don't set up specific posting types.