GL Accounts (Chart of Accounts)

Overview
 

• This program is used to enter, edit, and display the user company’s chart of accounts.

• GL Accounts that are the destinations of transactions originating in Rootstock ERP must correspond with (Manufacturing) Sub-Ledger Accounts.

Prerequisites

Financial Company Master:  The Financial Company Master must exist for the Company to which the GL Account record is being added.

Navigation

Financial System Admin > GL Accounts (Chart of Accounts)

Processing

GL Accounts (Chart of Accounts) - add or edit

Header Section

Fields
 

Company:  The Financial Company to which the GL Account pertains.

Account Number:  User-defined unique identifier for the account, up to 30 characters in length. Must be unique within a given Financial Company.

Description:  User-defined description of the GL Account, up to 100 characters in length. Note that GL Accounts typically display as the Account Number followed by the description in parenthesis—for example, 1001 (Cash - General).

  NOTE  If commas are used in the GL Account Description, it will cause problems with exports to CSV files.

Inactive:  When checked, it indicates that the Account is no longer active and can't be selected for use.

  NOTE  If the Account is already used on a control record, transactions using this account will still process. If this is unacceptable, change the control records where it is used.

GL Account Type:  Defines the type of GL Account, driving how the account is used in Financial reporting. Options are:

• Asset

• Liability

• Capital

• Revenue

• Expense

  NOTE  Once the account has been used in a transaction, the value cannot be changed.

  IMPORTANT  Incorrect assignment of the 'GL Account Type' will result in incorrect earnings calculations.

Normal Balance:  Identifies whether the Account normally carries a Debit or a Credit balance.

Type of Control Account:  Defines the type of control account this is. Once used in a transaction, the value cannot be changed. Options are:

• Not a Control Account

• Accounts Receivable Account

• Accounts Payable Account

• On-Hand Inventory

• WIP Inventory

• Combined On-Hand and WIP Inventory

• Income Tax Account

  NOTE  From the GL Accounts List View, the user can change the 'Type of Control Account' from any value to 'Not a Control Account' even if the GL Account is used in any transaction.

• Accounts Payable

• Accrued Accounts Payable

• Bank Card Account

• Cash Account

• Credit Card Clearing

• Foreign Exchange Variance

• Freight

• Tax

• Terms Discount Taken

• Trade Discount

• Accounts Receivable

• Bank Card Account

• Bank Payment Variance

• Bank Payment Variance - Foreign Currency

• Cash Account

• Cash Discounts Allowed

• Cash Receipts Multicurrency Rounding

• Credit Card Clearing

• Credit Card Processing Fee

• Finance Charge Interest Earned

• Foreign Exchange Variance

• Interest Expense

• Interest Income

• Tax

• Write-off/Write-up

• --None-- (appropriate for companies that will not create any VAT transactions)

• Not a VAT Account

• Incoming VAT

• Outgoing VAT

• Both Incoming and Outgoing VAT

• VAT Clearing

  NOTE  This field 'VAT Account' is displayed only when the VAT is active in the Company Master.

• --None-- (appropriate for companies that will not use the UFX function)

• Monetary Cash

• Monetary Non-Cash

• Non-Monetary

• P&L Monetary

• P&L Non-Monetary

• Acquisition of subsidiaries, net of cash acquired

• Amortization of intangible assets

• Asset reunification

• Cash

• Depreciation of property, plant, and equipment (excluding right-of-use assets)

• Depreciation of right-of-use assets

• Dividends paid to equity shareholders of the Parent

• Effect of exchange rates on cash and cash equivalents

• Expenses on RoV

• Income taxes paid

• Interest expense on lease liabilities

• Interest paid

• Interest received

• Loss on disposal of intangibles

• Loss on disposal of property, plant, and equipment

• Net cash flow from inventories

• Net cash flow from provisions

• Net cash flow from payables

• Net cash flow from receivables

• Net finance cost

• New borrowings – bank loan

• New borrowings – finance leases

• Other adjustments

• Payment of lease liabilities

• Proceeds from disposal of property, plant and equipment

• Proceeds from share issues

• Profit before taxation

• Purchase of own shares

• Purchases of intangible assets

• Purchases of property, plant, and equipment

• Repayment of capital element of finance leases

• Repayment of loans

• Return of Value (RoV)

• Share-based payments

• Bad Debt Allowance

• Net cash flow from financing activities

• Net cash flow from investing activities

• Net cash flow from operating activities

• Custom Cash Category

• Account Category 1 breaks out the five GL Account Types (Assets, Liabilities, Capital, Revenue, and Expense) into the next lower level of aggregation.

  • Typical examples where GL Account Type is Assets: Current Assets, Fixed Assets, Other Long Term Assets.

• Account Category 2 further breaks out the Account Category 1 categories.

  • Typical examples where Account Category 1 is Current Assets: Cash and Cash Type Assets, Accounts Receivable, Inventory.

• Account Category 3 further breaks out the Account Category 2 categories.

  • Typical examples where Account Category 2 is Cash and Cash Type Assets: Cash in Banks, Petty Cash, and Marketable Securities.

• Account Category 4 further breaks out the Account Category 3 categories.

  • There are no typical examples of Account Category 4. Usually, for any given region of the Chart of Accounts, three levels or even two will be granular enough. But it is possible that a company with many bank accounts would wish to group and subtotal them as Operating Accounts and Payroll Accounts or as EUR Accounts, GBP Accounts, and USD accounts.

  NOTE  The system will not allow the user to delete the GL Account record if it is referenced on any Sub-Ledger accounts.

SEE ALSO
 

Financial Company Master
Financial System User Company
Unrealized Foreign Exchange (UFX)