Accounts are used to categorize monies recorded into your company's General Ledger. Design Manager comes preconfigured with a set of Accounts but you can fully customize them to mirror your particular business model.
You can find the preconfigured Accounts by going to the left side menu, clicking on General Ledger and then clicking on Accounts. From here, you can edit or add accounts. To add an account, follow the steps below.
1. Go to the left side menu, click on General Ledger, and select Accounts.
2. Click on the +Add button in the top right and enter the information:
Account No.: Enter a General Ledger Account Number for the account. Generally, Asset Accounts start with a number 1, Liability Accounts with a 2, Equity Accounts with a 3, Revenue Accounts with a 4, Cost of Goods Accounts with a 5, and Expense Accounts with a 6. For example, cash is an Asset and its Account number is 10010. The account numbers should mimic each other excluding the first digit. Each Account must have a unique Account Number. When editing Accounts, the Account Number cannot be changed
Name: The Account Name describes the uses of the Account. The Name will appear on the Financial Statements (Ex. Bedding)
Account Type: Clicking on the menu will display the list of available Account Types. The following Account Types are available:
Asset: A Balance Sheet Account used to hold cash, investments, Accounts Receivable, Vendor Deposits, Inventory, land building, and equipment
Asset (Bank/Checking): A special type of Asset Account to be used as a Checking Account
Liability: A Balance Sheet Account used to hold Accounts Payable, sales taxes payable, payroll taxes payable, Client Deposits, and debt
Liability (Credit Card): A special type of Liability Account used to hold credit card transactions
Equity: A Balance Sheet Account used to maintain the accumulated net worth of the company
Revenue: An Income Statement Account used to record sales
Cost of Goods: An Income Statement Account used to record purchases for Projects
Operating Expense: An Income Statement Account used to record Expenses not associated with Projects
Other Income/Expense: An Income Statement Account used to hold entries not related to Projects and not part of Operating Expenses, Cost of Goods Sold, or Revenue
3. The following Year and Month fields you can leave as is. These are used for budgeting or forecasting your accounts.
4. Is Open: Check the box next to Is Open to have this new account show in Design Manager. (Ex. Reports).
5. Closed as of the End of Fiscal Month (Mo.): An Account can be Closed by selecting a Fiscal Month on this menu. Doing so will prevent any accounting activity for the Account from being posted into a Fiscal Month after the selected Fiscal Month. Activity can, however, still be recorded for the Account in Fiscal Month prior to or including the selected Fiscal Month. The Closed as of the End of Fiscal Month setting is useful when no further activity should be associated with the Account, but deleting the Account entirely is not desired.
6. When finished entering the information, click on Save.
Note: When adding accounts and selecting the Account Type, other fields may be displayed:
When the Account Type Asset (Bank/Checking) is selected, then this Account will represent a checking, savings, or petty cash account. This will allow Checks to be written and Cash Receipts entered against this Account, as well as reconcile the bank statement. Additional fields will appear when this type is selected.
Bank Number: This field is used to record the bank number for this Cash Account, usually found at the bottom of the check before the account number. The bank number is for reference only and may be left blank
Checking Account Number: The checking account number issued by the bank may be entered in this field. The Checking Number is for reference only and may be left blank
When the Account Type Liability (Credit Card) is selected, the Account may be selected to pay a Vendor as the Account will now appear in the Pay With field on the Vendor Invoice Windows. Two additional fields will appear when this type is selected:
CC Payee: Enter the Vendor Code for the credit card in this field. The Code should be the name of the credit card such as "VISA" or "AMEX". If no Vendor Code exists, one may be created by entering the credit card Payee Name, Address, and other information on the Vendor Window. To search for an existing credit card Vendor Code, place the cursor in the CC Payee field and click on the Search button
Credit Card Number: Enter the credit card account number in this field. The Credit Card Number is optional and for reference only