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