Creating General Ledger Accounts

From the Accounting menu, select General Ledger Accounts to open the General Ledger Accounts window.

Click [New] to open the New General Ledger Account window.
Note: Before you open the New General Ledger Account window, it is a good idea to determine the number for the account you are creating.

In the Number field, enter the number assigned to the account.
Note: This is a unique number for this account.

In the Name field, enter the name of this account.

In the Type field, use the lookup to select an account type from the account types listed.
Note: You cannot add to or remove from the account types available in e-automate.

In the Protection field, use the lookup icon to select a protection type if applicable for this account. Protection is used to assure that the subsidiary ledger reports stay in sync with your balance sheet report. If you are creating an account that is classified using one of the following types—Accounts Payable, Accounts Receivable, Cash, Current Assets, Current liability, Inventory, Fixed Asset, and Accumulated Depreciation—best practice recommendation is that you place appropriate protection on the account. Multiple accounts in e-automate have specific uses that are typed with the above identified account types. The list below identifies specific purpose accounts, grouped by our recommendation of the account type that should be assigned as well as typical naming, purpose, and protection.

Accounts Payable

Accounts Payable: Typically the GL account used to record and post your accounts payable amounts. Best practice in e-automate is to have a single account for this purpose, it should be typed as Accounts Payable – Current Liabilities and protected using the Accounts Payable protection.

Unapplied Vendor Payments: GL account used to account for payments made to vendors that are not specifically applied to a vendor invoice, for example, cash with order payments. This account should be typed as Accounts Payable – Current Liabilities and protected using Unapplied Vendor Payments.

Univoiced Inventory Receipts: GL account used to account for purchases that are received/returned, but not yet invoiced in accounts payable. This account is used in conjunction with the purchasing module. This account should be typed as Accounts Payable – Current Liabilities and protected using Uninvoiced Inventory Receipts.

Univoiced Inventory Returns: GL account used to account for purchases that are received/returned, but not yet invoiced in accounts payable. This account is used in conjunction with the RTV module. This account should be typed as Accounts Payable – Current Liabilities and protected using Uninvoiced Inventory Returns.

Accounts Receivable

Accounts Receivable: GL account used to track accounts receivable invoices from all modules in e-automate. Best practice recommendation is to have a single account for this purpose. This account should be typed as Accounts Receivable – Current Assets and protected using Accounts Receivable.

Unapplied Customer Receipts: GL account used to account for payments received from customers that are not specifically applied to an invoice, payments on account. This account should be typed as Accounts Receivable – Current Assets and protected using Unapplied Customer Receipts.

Undeposited Receipts: GL account used to track payments that are received from customers or vendors that are cash, check or credit card. This account serves as a temporary holding location until the funds are deposited or recorded as deposited into a specific cash account. This account should be typed as Accounts Receivable – Current Assets and should be protected using Undeposited Receipts.

Principal/Receivable: GL account typically used in conjunction with the amortizing lease module to place and remove value to sales leases. This account should be typed as Current Assets and protected using Principal/Receivable.

Cash

Checking account/Savings account: GL account used to track the amount of cash typically in a checking or savings account. These accounts should be typed as Cash – Current Assets and protected using Cash.

Current Assets

Intercompany due from accounts: GL accounts used to track current assets, typically the only current asset accounts that are protected are intercompany accounts that are used when e-automate is set up with multiple branches and multiple balance sheet groups. These accounts should be typed as Current Assets and protected using Intercompany.

Current Liability

Credit Card liability account: GL account used to track the use of a credit card to either vendor or non-vendors. Best practice is to set up these accounts, type them as Current Liability, and protect them using Cashbook.

Deferred Contract Revenue: GL account used to track liability associated with contract agreements typically entered into where the customer pays for a term longer than one month. Recommendation is to type these accounts as Current Liability and protect them using Contract Accrual.

Contract discounts: GL account used to track discount offered on deposit or time based service contracts. These accounts should be typed as Current Liability and protected using Contract Accrual Discounts.

Intercompany due to accounts: GL account used to track the internal liability that one branch may owe another branch. These are typically intercompany accounts and should be typed as Current Liabilities and protected using Intercompany.

Sales Tax Payable: GL account used to track sales tax liabilities. If you are using the Sales Tax Utility to create vendor invoices to pay the sales tax, this account should be typed as Current Liabilities and protected with Sales Tax Liability. If you use alternate methods to pay your sales tax liabilities, your sales tax payable account should not be protected.

Fixed Assets

Fixed Assets: GL account used to track fixed assets. This account should be typed as Fixed Assets – Noncurrent Assets and should be protected using Fixed Assets. Protection is only applicable if you are using the e-automate Fixed Asset module; if you are not using the module, do not protect on this account.

Accumulated Depreciation: GL account used to track the depreciation of fixed assets. Accounts should be typed as Accumulated Depreciation – Noncurrent Assets and protected using Accumulated Depreciation. Protection is only applicable if you are using the e-automate Fixed Asset module; if you are not using the module, do not protect this account.

Inventory

Inventory: GL account used to account for inventory items. This account should be typed as Inventory – Current Assets and should be protected using Inventory. You can create as many inventory accounts as you determine is appropriate. E-automate best practice recommendation when reconciling with your Inventory Valuation report is to sum the protected inventory accounts used for actual inventory and compare that balance with the comprehensive total on the Inventory Valuation report.

[Notes]: Click the [Notes] button to associate a note with this general ledger account.
Note: You can enter simple instructional information in the Primary note field. Information entered in the Primary note field is available to view using selective reduction using the general ledger account lookup for filtration. For additional information, see the Tips and Tricks topic's "Lookup Feature" section.

Click [OK] to save the general ledger account.
Note: General ledger accounts once added to the chart of accounts are available for use throughout the system. Accounts with balances automatically display on financial reports.