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Settings - Accounts

Set default accounts and required accounts for certain processes within SoftLedger

Geoff Ostrega avatar
Written by Geoff Ostrega
Updated today

Description

For the most part, these Ledger Account selections are a convenience setting that pre-populate form fields in specific places to save the effort of re-selecting the same account every time you open a new Document (e.g. Invoice or Bill). Manage your default Ledger Accounts from Settings>Accounts. In some cases, these selections are required, and be certain to set the Financial Close Ledger Accounts when you need to close an Accounting Year.

Note: In many cases, these are only default accounts, meaning you can always select a different account to the one selected here as the default on a per Document basis.

Default Account Options

Below is a list of the default Ledger Account selections grouped based on the below:

Invoices & Revenue

Accounts Receivable

Default account for AR Account added to a receivables Invoice

Invoice Line Item

Default Revenue Account for Invoice line items

Items & Inventory

Bill Line Item

Default Expense Account for a Bill line when selecting an Item within a Bill (Debit Side of Bill Journal Entry)

Invoice Line Item

Default Revenue Account for an Invoice line when selecting an Item within an Invoice (Credit Side of Invoice Journal Entry)

Inventory Asset

Default Asset Ledger Account when setting up a new Item in Inventory module

Cost of Goods Sold

Default Cost of Goods Sold Ledger Account when setting up a new Item in Inventory module

Work In Process

Default Work in Process Ledger Account when setting up a new Item in Inventory module

Bills & Payables

Accounts Payable

Default account for AP Ledger Account added to a payables Bill

Bill Payment

Default Expense Account for Bill line items

Cash Management

Create Cash Receipt

The default Cash Ledger Account pre-populated when creating a Cash Receipt for the Debit Side of the Cash Receipt Journal Entry (often this is the bank account used for deposits)

Unapplied Cash

The default temporary Ledger Account to be used for Cash Receipts representing the Credit Side of a Journal Entry. This is visible as Unapplied Cash before being applied to Invoices

Caution: The System Setting "Post Journal on Cash Receipt" needs to be Enabled for this Ledger Account to be used. That Setting can only be set when there are no Cash Receipts outstanding for application.

Unapplied Credit

The default temporary Ledger Account to be used for Vendor Credits representing the Debit Side of the Journal Entry booked when a Vendor Credit is created before being applied against a Bill

Caution: The System Setting 'Post Journal on Vendor Credit Creation(Unapplied Credit)' needs to be Enabled for this Ledger Account to be used. That Setting can only be set when there are no Vendor Credits outstanding for application.

Batch Payments

Cash Account

The default Ledger Account used for the Cash side of the batch Journal Entry (Credit Side)

Clearing Account

The default Ledger Account used as the clearing account between the Batch Payment and Individual AP Payments that make up the batch

Purchase Orders

Inventory Accrual

The default Ledger Account used for the Credit Side of the Journal Entry when receiving inventory against POs.

Intercompany

AP Intercompany Payable

Default intercompany payable Ledger Account for Bills when creating a Journal Entry off of an IC Bill (Credit Side

AP Intercompany Receivable

Default intercompany receivable Ledger Account for Bills when creating a Journal Entry off an IC Bill (Debit Side)

AR Intercompany Payable

Default intercompany payable Ledger Account for Invoices when creating a Journal Entry off of an IC Invoice (Credit Side)

AR Intercompany Receivable

Default intercompany receivable account for Invoices when creating a Journal Entry off an IC Invoice (Debit Side)

Tax

Default Tax Account

Default sales tax Ledger Account used in a Journal Entry for a Document with Tax where no Tax Code is selected

Financial Close

Accumulated Other Comprehensive income

Used to book the automatic Cumulative Translation Adjustment Journal Entry during the Accounting Year close

Other Comprehensive income

Used to book the automatic Cumulative Translation Adjustment Journal Entry during the Accounting Year close

Retained Earnings Account

Used to book the automatic year end Retained Earnings Journal Entry during the Accounting Year close

Elimination Clearing Account

Used to book the automatic Elimination Clearing Journal Entry during monthly closes

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