Creating/ Modifying a general ledger account

Owned by Diane Partridge
Last updated: Aug 23, 2019
8 min read

Overview

The Purpose of the Chart of Accounts is to provide a listing of the different accounts used by the organisation according to their intended purpose. Readysell has a set Chart of Accounts, the Chart is reviewed by the Site as additonal Accounts may need to be modified/added.

You should never CHANGE the Accountid or DELETE a Accountid of any of the Chart of Accounts as there are mandatory accounts that are linked to System reference table.  
Please check with Readysell before making any changes to the chart.
Best Practice is to find where in the chart you wish to add an account, work out an Accountid, COPY an existing accountid from the same area. Then change the accountid and name. Try and keep the chart in alphabetical order.
The accountids that end in either 2, 3 or 4 Zeros are a type of Header Account.
Be careful where in the chart you set up new accounts and what accountid you use. 

Procedure

Setting up the Primary Bank account and Other Bank Accounts.

You can only have 1 Primary Bank Account but many Bank Accounts.
Readysell has a standardised chart of accounts that you can add accounts to.
Once all the bank accounts are set up, ensure that you have all tenders set up to point to the correct bank account Setting up a Tender

  1. Log onto Readysell>Financials>General Ledger>Accounts>List View
    If you are working from Tree View, click on the Expand All action button in the top ribbon (task bar) 

  2. Find in the Asset section the main bank account 11505 and highlight it

  3. In the Detail area, field = Description, enter the Bank Account eg could be Bank itself along with the name or just the name of the bank account

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  4. Click on the Settings Tab
    'Is Bank Account' = Ticked
    'Primary Bank Account = Ticked
    Bank Account Bank = type in the bank EG NAB
    Bank Account name = type in the name of the Bank Account
    Bank Account BSB = type in the BSB 
    Bank Account Number = type in the Bank Account number
    Click on SAVE

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  5. If you have any other bank accounts, do the same.

For Visa/Credit Card accounts, Readysell has a list in the Liability area starts at 34000
Make the appropriate changes and Save

Browsing the Chart of Accounts - List View

  1. From the Navigation panel, click on Financials, click on General Ledger then click on Accounts 

  2. Select List View

  3. Drop the check box and change the window preview to be in List View

  4. A List View of the Chart will appear to screen

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  5. Click on All Accounts from top panel bar
  6. Search/Highlight the GL Account you need to find
  7. The Account Numbers are known as 'Account ID' and the Account Name is known as Description.
  8. As you highlight a General ledger account, to the right will appear the details for that account. 
  9. If any changes need to be made, make them then click on Save

Browsing the Chart of Accounts - Tree View

  1. From the Navigation panel, click on Financials, click on General Ledger then click on Accounts

  2. Select Tree View

  3. Drop the check box and change the window preview to be in List View

  4. Click on Balance Sheet Or Profit and Loss preview from top bar

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  5. Click on Expand All Icon top bar and the chart will expand in Tree View eg below

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  6. Search/Highlight the GL account you need to find
  7. If any changes need to be made, make them then click on Save

Inserting a New GL Account

  1. Find within the chart where the GL account belongs eg is it an Asset or Expense etc. Remember to add an account in Numeric/Alpha order and within the right part of the tree structure.
  2. Highlight the Header/Parent Account and Click on button New
  3. Enter the GL Account
  4. Press Tab on your keyboard

  5. Select correct Account Type

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  6. Enter Description of the GL Account

    1. Click on Settings Tab

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    2. If this account is a type of Bank tick the Is Bank Account Field and fill in the Bank Account Details 

    3. If this account is a Cost of Goods, Income/Revenue or Expense account then you will need to assign the P&L Appropriation GL Account, Clear to Account, and tick the box of Clear at Year End and Enter the Clear to Account.
      Check all the other fields on the Settings Tab re P&L Parent and Bal Sheet Parent flags.

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  7. Still on the Settings tab

  8. Select whether account is Normally Debit or Credit

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  9. If this account is part of the Cost of Goods, Sales and Income or Expense chart you will need to tick the appropriate check boxes and fill in the relevant accounts in the relevant fields. See print below

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  10. If the account is not part of P&L then turn on relevant fields and assign correct accounts to fields for that part of the Balance sheet.  see print

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  11. IF the account is a Header account then tick Heading on Balance sheet or Profit and Loss

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  12. If you wish to assign transaction types to General Ledger accounts and limit the use of the gl account within the system, then click on the tab Available Transaction Types

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    1. Click on New to insert a transaction type and tax code repeat for all transaction codes
  13. Once completed click on 'Save and Close' 

Changing A GL Account

  1. From the Navigation panel, click on Financials, click on General Ledger then click on Accounts

  2. Click on Listview
  3. Drop the check box and change the window preview to be in List View 

  4. Click on All Accounts from top bar

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  5. Search/Highlight the gl account you need to find
  6. If any changes need to be made, make them.
  7. Click on Save to save changes

Copying A General Ledger Account

  1. From the Navigation panel, click on Financials> General Ledger>Accounts> Listview

  2. Drop the check box in the top ribbon and select Standard View

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  3. Drop the filter in the top ribbon and select All Accounts 

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  4. Find where in the chart you wish to have the account. Search/Highlight the general ledger account within that area that needs to be copied. Ensure it is not a header account 
  5. Click on Copy action button
  6. A window will open with the details from the account you just copied.
  7. Change the Account ID; Description;  and whatever else needs to be changed on the Settings Tabs.
  8. Click on Save and Close once completed.

Breaking up your chart of accounts further with a Header General Ledger Account, Secondary Header account and then linking a Child Sub Department Account

 Example

Header GL Account                     = Revenue 61000
Child to the Revenue Account     = Sales Revenue 61005 (this is also a header account)
Child to Sales Revenue               = Sales - Administration 61005-001
Another child to Sales Revenue  = Sales - Stationary 61005-002 and so on.



To create a Header account with a subdepartment (child) account, follow the same steps as though you are copying a GL account, except ensure that the account you copy is flagged as a 'Header Account'
Customerise your screen layout by adding to the detail area the field of 'Header Account"

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  1. Once you click on Copy, a new window appears, check that the flag on the settings tab for  'Header Account' is checked
  2. Make the appropriate changes to the following fields of Accountid, Description, P&L Parent , Bal Sheet Parent, Header Account etc on the the Settings Tab
  3. Click on Save
  4. Now to create a child to this Secondary Header GL Account.
    Copy a Postable GL Account 
  5. Change the Accountid, Description, P&L Parent & Bal Sheet Parent to be the Secondary Header GL Account you just created
  6. Click on Save

CREATING A SUB ACCOUNT WHERE THE GENERAL LEDGER ACCOUNT ALREADY HAS POSTINGS

Step 1

  1. Find the old account that is not a parent child scenario, that you now need to be parent/child EG 15005
  2. Highlight and rename the account id of 15005 to 15005x and click on SAVE
  3. Then create a new general ledger account to stand for this old header account by clicking on the Copy Action button on the old account of 15005X and name it 15005 and turn the tick on for 'Header'  and click on Save & Close
    If you are unable to tick the field of 'header' on the new gl account created, then go to the first child account and select this account to be the header on the child.
    (if you cannot see the field of 'Header' on the settings tab, drag it on)
  4. Then create the children accounts under 15005 (the new account) eg 15005-ADM
    For each child account created, ensure the parent accounts is the header account of eg 15005 , that is the new gl account you just created. You will find the parent gl accounts on the Settings Tab
    if you have a problem trying to 
  5. Continue creating all children accounts required for that area of the chart

Step 2

  1. Next check each Interface rule that has been referenced back to the the old gl account of 15005 (which is now 15005x)
    Change these interface rules to use the product category rule 

Step 3:

  1. Next ensure you have assinged the new children gl accounts to the appropriate areas in the product categorys.
    Make sure the old account code eg 15005 is replaced with the new child account eg 15006-adm for each of the correct product category.

Step 4:

Then you either need to create a manual general ledger journal to dissect from the old gl account eg 15005x to the appropriate new gl children accounts or contact Readysell to quote you on re-dissecting the general ledger transactions.


Step 5:

On the old general ledger accounts, change the description to read 'TO DO NOT USE AND PUT and X on the accountid' 

If you get readysell to re-dissect the postings for you, you need to check that there are no dissections on the old account of 15005X so that you can then delete it.