GL: Chart of Accounts

Overview

You can use the Chart of Accounts screen to set up, change, or set to inactive your general ledger chart of account records. All accounts used in the preparation of the balance sheet, income statement, statement of equity, and all accounts that management needs for planning and control purposes should be included in your Chart of Accounts.

Each general ledger number represents a separate account for recording transactions. Normally, the accounts of a business are classified by category and logically arranged in the general ledger. This serves two purposes:

  • it aids in locating any account and
  • it aids in preparing financial statements

In the WinTeam default database, the number assigned to an account not only identifies the account, but also tells its balance sheet or income statement classification. In the WinTeam default database, the first digit in an account’s number tells its main balance sheet or income statement classification.

Example:  Account numbers with first digits of 1 are assigned to asset accounts. Liability accounts are assigned numbers with first digits of 2, and so on.

If you are entering the chart of accounts for the first time, we recommend that you number the general ledger numbers in minimum increments of at least 10. This leaves room for expansion in the number of accounts.

From the Chart of Accounts screen, you may click the Detail button to view the Comparative Analysis screen for any selected account.

Standard grid functionality applies to this screen. For information on grid functionality see Understanding Grids and Using the Filter Row Feature.

Key Functionality

Use the G/L Number to assign a General Ledger number to an account to easily identify it.

If you are entering a new account, we recommend assigning the General Ledger account numbers in increments of at least 10 to leave room for expansion. In addition, use GL account numbers of equal length. For example, if your chart of accounts contains 4 digits, then all GL account numbers should contain 4 digits.

You may change a GL account number only if there has been no activity on it. For information on deleting GL numbers, see Deleting a General Ledger Account Number.

Use the Account Description field to view or change the description of the corresponding General Ledger Account number. Whenever possible, keep the description short and concise to simplify finding the Account Description in an alphabetical list of accounts.

The system uses the Account Description whenever accounts are referenced or listed. You may also use the Account Description to filter or sort general ledger information.

Select the Category to classify a General Ledger account as an Asset, Liability, Income, or Expense.

You may also use the Category to filter or sort general ledger information.

Use the Active check box to set an account to an active status. Once you use an account, you may not delete it from the system.
Clear (uncheck) the check box to set an account to an inactive status.

Select the Account Type you want to use.
To add a new Type, double-click in the Type field, or type a new Type and press Enter. The General Ledger Account Types add/edit list displays.

Use the Notes field to enter any notes about this account. If you enter more than one line of information in this field, the system automatically wraps the lines of information for you.

Click the Detail button to display the Comparative Analysis screen for the selected record. The Chart of Accounts screen will minimize. Click Close on the Comparative Analysis screen when you are ready to return to the Chart of Accounts screen.