![]() The bookkeeping balance of these accounts is kept from one fiscal year to the next.The first 3 drawers: Assets, Liabilities, and Equity (or Capital and Reserves) hold the Balance Sheet Accounts, such as the Sales Tax account and the Accounts Payable Account.Let us start with Balance Sheet Accounts: In the General Ledger, we distinguish between Balance Sheet Accounts and Income Statement Accounts, also called Profit and Loss Accounts. The Chart of Accounts window organizes your accounts by drawers. The organization of the chart of accounts follows Generally Accepted Accounting Principles. The chart of accounts varies according to the company’s localization. Let us look at this example of a Chart of Accounts. The Chart of Accounts is organized by drawers and levels. The account balances are also affected by manual journal entries and other accounting transactions, such as the Period End Closing process that transfers the balances of the Profit and Loss accounts to a Balance Sheet account. The documents in the Sales and Purchasing processes create automatic journal entries that are registered in the Journal Entry file and affect the account balances. Default G/L accounts to be used when transactions are created in the regular business processes: Sales, Purchasing, Inventory and more.When you implement SAP Business One you define (or import): Additional information that determines the functions of the G/L account. ![]() The chart of accounts is an index of all G/L accounts used by your business. ![]() Therefore, the Chart of Accounts presents the complete financial status of the company, as well as the Financial Reports (for example, Trial Balance and Balance Sheet). The receivable and payable control accounts accumulate the customer and vendor transactions in their balances.įor example, when you post an A/R invoice, the accounts receivable account related to the customer is used, in addition to the customer account. The Business Partner Master Data balances do not appear in the Chart of Accounts. How are the Business Partner Master Data balances presented in the Chart of Accounts? II/ Reflection Question: The Chart of Accounts
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |