General Ledger Accounts

Five Accounting Categories

To review from the previous topic, there are five major Account Categories. They are:

For reporting and management purposes, these Account Categories may be further categorized, as shown below.

Assets

Assets (what you own) can be described as being either:

Liabilities

Liabilities (what you owe) may be described as being either:

Equity

Equity Accounts hold the value of your business:

Revenue

Revenue (or income) in your business comes from:

Expenses

Expenses in your business are incurred as a result of:

Chart of Accounts & Definitions

Below you will find a list of the default chart of accounts and what transactions effect each account.

Assets - 1000

• 1000 - Current Assets - 1000 to 1390 is a collection of asset accounts under the current assets section of the ledger.
• • 1050 - Cash Drawer - Contains cash on hand for all methods of payment created using the methods of payment tool. The cash drawer can also retain a cash balance to be used as petty cash.
  • • Transactions - Posting Invoices, Posting Credit Slips, Deposit, Payment on Account, Cash Paid Out, Cash Balance, Cash Withdraw and Payment to Supplier.
  • 1100 - Bank Accounts - Contains all bank accounts created using the bank account creation tool.
  • • Transactions - Deposit, Cash Paid Out, Payment to Supplier, Payable Payments, Payroll Entry, Payroll Advances, Payroll Remittances, Tax Remittances, Posting Service Charges, Posting Interest Earned, Cash Withdraw, and Bank Account Transfers.
  • 1150 - Total: Cash - The total cash on hand for the location. It is the sum of the 1050 and 1100 accounts. This account is calculated and displayed on the balance sheet for the date range specified.
  • 1200 - Accounts Receivable - Contains accounts receivable transactions for each contact in your database. The contacts are the sub accounts.
  • • Transactions - Posting Invoices, Posting Credit Slips, Payment on Account, Accounts Receivable Tools, Apply Service Charges, Accounts Receivable Purge and Payments from other locations when using centralized accounts receivable.
  • 1300 - Reclaimable Taxes Paid Out  - Contains all Other Charges deemed as reclaimable in the Location Defaults.
  • • Transactions - Posting Supplier Invoices, Posting Returned Goods, Posting Warranties, Entering Bills, Tax Remittance, Cash Paid Out.
  • 1350 - Transfers Clearing Account - This is the offsetting account for the inventory that is transferred between locations. On consolidated financial statements, this account should have a balance of zero.
  • • Transactions - Inventory Transfers.
  • 1355 - Payments From Other Locations - This is the offsetting account for payments made to accounts receivable and payable using bank accounts from other locations. For instance, if the head office pays an accounts payable on your location's behalf the funds will come out of their bank account but it will pay your payable. Your payable will be reduced and this account will have the offsetting entry to keep your ledger in balance. The head office will also have an offsetting entry in this account at their location to offset the bank account entry. This is the offsetting account for the inventory that is transferred between locations. On consolidated financial statements, this account should have a balance of zero.
  • • Transactions - Any entry made at your location using a head office bank account or entries made at the head office that make a payment on a receivable or payable in your location using a head office bank account.
  • 1360 - Bank Transactions to Other Locations - Contains bank transactions that you enter in your location that uses funds from the head office location.
  • • Transactions - Any entry made at your location using a head office bank account that does not make a payment on a receivable or payable in your location using a head office bank account. This includes Deposit, Cash Paid Out, Cash Withdraw, Payment to Supplier. This is the offsetting account for the inventory that is transferred between locations. On consolidated financial statements, this account should have a balance of zero.
  • 1370 - Other Current Assets - Contains user created current asset accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Current Assets Accounts.
  • • Transactions - All transactions to these accounts are done through the GL Adjustment tool.
  • 1390 - Total: Current Assets - This is the total value of the current assets in account 1000 through 1370. This account is calculated and displayed on the balance sheet for the date range specified.
• 1400 - Inventory Assets - All accounts that are responsible for inventory. This includes accounts 1400 through 1490.
• • 1410 - Whole Goods - This account is currently unused but is reserved for inventory features specific to used vehicle sales and rebuilders.
  • 1420 - Materials - This account is the value of your materials inventory at the actual acquired cost. This account also includes the value of consignment inventory.
  • • Transactions - Receiving, Recounting, Returning, Inventory Transfers, Posting Invoices, Posting Credit Slips.
  • 1430 - Supplies - This account is the value of your supplies inventory at the actual acquired cost.
  • • Transactions - Receiving, Recounting, Returning, Inventory Transfers, Posting Invoices, Posting Credit Slips, Internal Consumption.
  • 1440 - Returns Bin - This is the value of all items that are in the process of being returned to the supplier for credit.
  • • Transactions - Returning, Return while Receiving, The core value of an item being sold with a returned status, Warranty, Manually adding items to the Return or Warranty bin, Manually deleting items from the return or warranty bin.
  • 1450 - Parts Received for Work in Progress - The value of all materials received from supplier on open work orders that have not been posted yet.
  • • Transactions - Materials received from supplier on to a work order, Posting Invoices.
  • 1490 - Total: Inventory Assets - This is the total of all inventory asset accounts numbered 1400 through 1450. This account is calculated and displayed on the balance sheet for the date range specified.
• 1500 - Capital Assets - Contains user created capital asset accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Capital Assets Accounts.
• • 1550 - Total: Capital Assets - This is the total value of the capital assets in accounts created under 1500. This account is calculated and displayed on the balance sheet for the date range specified.
• 1600 - Long Term Assets - Contains user created long term asset accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Long Term Assets Accounts.
• • 1650 - Total: Long Term Assets - This is the total value of the long term assets in accounts created under 1600. This account is calculated and displayed on the balance sheet for the date range specified.

Liabilities - 2000

• 2000 - Current Liabilities - All accounts that considered to be current liabilities. This includes accounts 2050 through 2500.
• • 2050 - Credit Card Accounts - Contains all bank accounts that are set to be credit card accounts created using the bank account creation tool.
  • 2100 - Accounts Payable - Contains accounts payable transactions for each contact in your database. The contacts are the sub accounts.
  • 2105 - Deferred Payments - This account contains the journals for the split payment terms feature in both accounts receivable and accounts payable. The balance of this account will always be zero.
  • 2110 - Supplier Invoices Not Yet Posted - These are all supplier invoices in the purchases manager that have not yet been posted to accounts payable.
  • 2120 - Transfer Slips Not Yet Posted - This account is a legacy account that is no longer used. If you have been on the system for a long time there may be transactions in this account for inventory transfers. They have since been moved to 1350.
  • 2130 - Consignment Liabilities - The value of materials that are designated as consignment.
  • Transactions - Receiving, Recounting, Returning, Inventory Transfers, Posting Invoices.
  • 2200 - Tax Collected on Sales - This account holds the details of all other charges deemed to be taxes owing (liability) in the Master Other Charges dialog.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 2400 - Payroll - This account is a legacy account that is no longer used. If you have been on the system for a long time there may be transactions in this account for manual payroll entries done using the GL Adjustment Tool. Payroll entries are now made to the 2410 accounts.
  • 2410 - Payroll Liabilities - These accounts are created using the Tools | Location | General Ledger Accounts tool.
  • • Transactions - Payroll Entry, Payroll Advances, Payroll Liability Remittances.
  • 2500 - Other Current Liabilities - Contains user created current liability accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Current Liability Accounts.
  • • Transactions - All transactions to these accounts are done through the GL Adjustment tool.
  • 2690 - Total: Current Liabilities - This is the total value of the current liability accounts 2000 through 2500. This account is calculated and displayed on the balance sheet for the date range specified.
• 2700 - Long Term Liabilities - Contains user created long term liability accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Long Term Liability Accounts.
• • 2790 - Total: Long Term Liabilities - This is the total value of the long term assets in accounts created under 2700. This account is calculated and displayed on the balance sheet for the date range specified.

Equity - 3000

• 3500 - Retained Earnings - All accounts that are equity accounts including earnings, opening balances, and user created equity accounts. These include accounts from 3510 through 3590.
• • 3510 - Retained Earnings - This is a system generated account and can't be modified or adjusted. The retained earnings value is automatically calculated when the balance sheet is generated. The retained earning amount is the profit earned prior to the start date of the balance sheet.
  • 3520 - Current Earnings - This is a system generated account and can't be modified or adjusted. The current earnings value is automatically calculated when the balance sheet is generated. The current earnings amount is the profit earned between the start date and the end date of the balance sheet.
  • 3530 - Opening Balance - This account is used as the offsetting entry when posting opening balances into the ledger to bring it live. It can only be accessed using the GL Adjustment Tool and the balance of this account should be zero once all opening balances have been entered.
  • 3540 - Other Equities - Contains user created equity accounts that are not part of the default chart of accounts. These accounts are created in the General Ledger Accounts Tool by selecting Equity Accounts.  It can only be accessed using the GL Adjustment Tool.
  • • Transactions - All transactions to these accounts are done through the GL Adjustment tool.
  • 3550 - GL Sync Forced Balance Entry - This account is a utility account that is written to when the ledger is brought back into balance using the GL Verification Tool and then forcing the ledger back into balance. The amount causing the out of balance condition will be written to this account. Using the GL Adjustment Tool is recommended to move the offending amounts back to the proper accounts. This account should have a zero balance under normal circumstances.
  • 3590 - Total: Retained Earnings - This is the total value of the equity accounts from 3500 to 3550. This account is calculated and displayed on the balance sheet for the date range specified.

Revenue - 4000

• 4000 - Sales - All revenue accounts classified as sales. These accounts fall in the 4050 to 4325 range.
• • 4050 - Inside Labor Sales - All labor line items sold or credited that are assigned to a technician.
  • • Transactions - Posting Invoices, Posting Credit Slips.
  • 4100 - Outside Labor Sales - All labor line items sold or credited that are assigned (purchased) from a supplier.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 4150 - Material Sales - All material items sold or credited.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 4200 - Whole Goods  Sales - This account is currently unused but is reserved to record sales that are specific to used vehicle sales and rebuilders.
  • 4250 - Work Order Supplies - All inventoried supply items sold or credited. This is not to be confused with shop supplies derived in other charges that are sold as a fee on an invoice.
  • 4300 - Miscellaneous Shop Supplies - All shop supplies sold or credited that were configured using the other charges tool. This account does not include supply items sold from inventory.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 4325 - Other Charges Collected as Revenue - All sales and credits of other charges that are configured to be revenue accounts.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 4350 - Total: Sales - This is the total value of the revenue accounts 4050 through 4325. This account is calculated and displayed on the income statement for the date range specified.
• 4400 - Miscellaneous Revenue - These are accounts that generate revenue but not through sales.
• • 4405 - Materials Growth (Recounts) - This account holds the transactions for material inventory items that have been manually adjusted to a higher quantity using Recount.
  • • Transactions - Recount
  • 4410 - Supplies Growth (Recounts) - This account holds the transactions for supply inventory items that have been manually adjusted to a higher quantity using Recount.
  • • Transactions - Recount
  • 4415 - RGB Growth (Fount Items) - This account contains all the transactions for returned goods and warranty items that were manually added using the add found item option.
  • • Transactions -  Add Fount Item
  • 4420 - Supplier Invoice Adjustments (Credits) - The account contains all the credits (negative adjustments) made to supplier invoices in the purchases manager.
  • • Transactions - Supplier Invoice Credit Adjustments
  • 4425 - Receivable Account General Debits - This account contains all general debit adjustments (positive adjustments) made to the accounts receivable using the debit adjustment tool within the accounts receivable dialog. This account is used when an alternate expense is not chosen during posting.
  • • Transactions - Debit Adjustment
  • 4430 - Receivable Account Service Charges - This account is used to record service charges applied to receivables using the automated monthly task that applies service charges to all accounts or the service charge tool on an individual account.
  • • Transactions - Apply Service Charges, Service Charge.
  • 4450 - Payable Account General Credits - This account contains all general credit adjustments (negative adjustments) made to the accounts payable using the debit adjustment tool within the accounts payable dialog. This account is used when an alternate expense is not chosen during posting.
  • • Transactions - Credit Adjustment
  • 4470 - Bank Account Adjustments (Credits) - This account contains negative adjustments made using the bank account adjustment tool and the interest earned entries made in the bank account dialog.
  • • Transactions - Interest Earned, Adjustment
  • 4475 - Tax Adjustments (Credits) - Contains credit (negative) adjustments made during tax remittance processing.
  • • Transactions - Tax Remittance
  • 4490 - Total: Miscellaneous Revenue - This is the total generated on the income statement for accounts 4405 through 4475.
  • 4500 - Other Revenue - Contains user created other revenue accounts that are not part of the default chart of accounts and are not updated by the invoicing system. These accounts are created in the General Ledger Accounts Tool by selecting Other Revenue.
  • • Transactions - All transactions to these accounts are done through the GL Adjustment tool.
  • 4550 - Total Other Revenue - The total of the other revenue accounts created in 4500. This account total is calculated for the date range specified on the income statement.

Expenses - 5000

• 5000 - Cost of Sales - The cost associate with selling goods - also know as cost of goods sold.
• • 5050 - Inside Labor Cost - This account is not used with the invoicing system and in most cases will be zero. Inside labor cost is usually posted through Payroll and will be recorded 5550. However, you can adjust this account manually using the General Ledger Accounts Tool but understand that the adjustments will reflect on the Vital Signs report under cost of labor.
  • 5100 - Outside Labor Cost - Contains sublet transactions where the technician is replaced by an outside vendor on a labor line item.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 5150 - Materials Cost - Contains transactions sold or credited as material line items from inventory or from supplier on an invoice or credit.
  • • Transactions - Posting Invoices, Posting Credit Slips
  • 5200 - Whole Goods Cost - This account is currently unused but is reserved to record costs that are specific to used vehicle sales and rebuilders.
  • 5250 - Work Order Supplies Cost - All inventoried supply items sold or credited. This is not to be confused with shop supplies derived in other charges that are sold as a fee on an invoice with no cost of sales associated with them. Other charge shop supplies are expensed and are not a cost of sales.
  • 5350 - Total: Cost of Sales - This is the total calculated on an income statement for accounts 5050 through 5250.
• 5400 - Miscellaneous Expense -  These are accounts that generate expenses but not through sales or bill entries.
• • 5405 - Materials Shrinkage (Recounts) - This account holds the transactions for material inventory items that have been manually adjusted to a lower quantity using Recount.
  • • Transactions - Recount
  • 5410 - Supplies Shrinkage (Recounts) - This account holds the transactions for supply inventory items that have been manually adjusted to a lower quantity using Recount.
  • • Transactions - Recount
  • 5415 - RGB Shrinkage (Lost Items) - This account contains all the transactions for returned goods and warranty items that were manually deleted using the delete lost item option.
  • • Transactions -  Delete Lost Item
  • 5420 - Supplies Consumed Internally - This account contains all transactions for supplies that you use internally and do not sell on an invoice.
  • • Transactions - I Used One.
  • 5430 - Shipping Charges Paid Out - This account contains shipping charges added to supplier invoices in the purchases manager.
  • • Transactions - Supplier Invoices
  • 5440 - Supplier Invoice Adjustments (Debits) - The account contains all the debits (positive adjustments) made to supplier invoices in the purchases manager.
  • • Transactions - Supplier Invoice Debit Adjustments
  • 5450 - Receivable Account General Credits - This account contains all general credit adjustments (negative adjustments) made to the accounts receivable using the credit adjustment tool within the accounts receivable dialog. This account is used when an alternate expense is not chosen during posting.
  • • Transactions - Credit Adjustment
  • 5460 - Payable Account General Debits - This account contains all general debit adjustments (positive adjustments) made to the accounts payable using the debit adjustment tool within the accounts payable dialog. This account is used when an alternate expense is not chosen during posting.
  • • Transactions - Debit Adjustment
  • 5465 - Payable Account Service Charges - This account is used to record service charges applied to payable accounts using the service charge tool.
  • • Transactions - Service Charge.
  • 5470 - Bank Account Adjustment (Debits) - This account contains all positive adjustments to the bank account using the adjustment tool or the service charges tool in the bank account dialog.
  • • Transactions - Adjustment, Service Charge
  • 5475 - Tax Adjustment (Debits)- Contains debit (positive) adjustments made during tax remittance processing.
  • • Transactions - Tax Remittance
  • 5480 - Cash Outages - This account contains outages recording when processing the cash balance.
  • • Transactions - Record Outage
  • 5500 - Non-Reclaimable Taxes Paid - These accounts contains the "tax" portion of the transaction that you have deemed non-reclaimable on the GL tab of the Other Charges configuration dialog.
  • • Transactions - Tax Adjustment on Supplier Invoices, Enter a Bill in a Payable
  • 5550 - Expense Categories - These accounts contain transactions posted throughout the software where expenses are entered.
  • • Transactions - Enter a bill in accounts payable, Add Expense in Supplier Invoices, Cash Paid Out, Receivable Credit and Debit Adjustments, Payable Credit and Debit Adjustments
  • 5600 - Total: Miscellaneous Expense - The calculated total that appears on the income statement for all Miscellaneous Expense accounts 5405 through 5550.
• 5700 - Other Expense - Contains user created other expense accounts that are not part of the default chart of accounts and are not updated by the invoicing or payable system. These accounts are created in the General Ledger Accounts Tool by selecting Other Expense.
• • Transactions - All transactions to these accounts are done through the GL Adjustment tool.
  • 5750 - Total Other Expense - The total of the other expense accounts created in 5700. This account total is calculated for the date range specified on the income statement.