Table of contents
Account codes are required when explaining transactions, creating invoices/bills or creating journals. They determine which report the balance of the transaction appears on, some are balance sheet accounts and others are Profit & Loss accounts.
Account types are a group of accounts that you can report on, for example, Revenue, Labour revenue and Materials revenue all sit in the Account type Revenue.
2. Account Codes
You can manage account codes on the Settings > Accounting > Account codes menu.
2.1 Account code menu options
The Statement column determines whether the account will update the balance of the transaction on the Profit & Loss report (PL) or Balance Sheet report (BS).
You can edit the names of accounts by clicking on the edit link under the Actions column beside the appropriate account name. Some accounts cannot be edited as they are reserved for system features (e.g. CIS).
You can delete accounts by clicking on the delete link also under the Actions column. Some accounts cannot be deleted as they are reserved by the system. Others may have had transactions coded to these accounts (this includes voided invoices/bills).
If you have unwanted accounts you can make sure they do not appear in any account drop down lists in the system by un-checking the Show in sales and Show in purchases check-boxes and updating at the bottom.
2.2 Create account codes
You can add new accounts on the Settings > Accounting > Account codes page by clicking on the Create account code button.
The account name must be unique.
You can change the code number of the account. The toggle Tailored Account Codes must be enabled on the Settings > Configure system > Toggle Features menu within the Accounting tab on the left.
You can change the Account type on most accounts.
The Accounts that you are unable to change the Account type on are:
- All the default system generated balance sheet accounts
- All the default system generated Salaries account codes (4001001 - 5)
- All the default system generated fixed asset depreciation account codes (4010001 - 4)
- All system generated account codes for bank accounts
- All system generated account codes for employee expenses
- All system generated account codes for shareholder dividend accounts
- All fixed asset account codes if used on a transaction
- Revenue (1001001), Cost of sales (2001001), Other income (3001001), Reclaimed expenses (3001002), General admin (4004001), Entertaining staff (4008001), Entertaining clients (4008002), Bad debt expense (4011001), Amortisation (4012001), Forex movement (5001001), Interest income (5501001), Interest expense (6001001), Bank charges (6001002), Corporation tax (6501001)
Select the appropriate VAT rate and whether to show in sales or purchases and hit the Save new account button to complete.
2.3 Create account types
You can add new account types when creating the new account by clicking on the plus icon in green beside the Account type drop-down list.
You will then be able to enter a new name in the New account type field and select an appropriate category. The categories cannot be added to or edited in any way.
If you have any accounts which are currently using the wrong account type, delete the account (if still possible) using the wrong account type and re-add.
If it's not possible to delete the account create a new account with a new account type and make sure to hide the old account by removing the tick from the show in sales/purchases check-boxes. You can edit any existing transactions replacing the original account used with the new one.