General Ledger Default Accounts

There are four folders which are used for establishing the default G/L account numbers to be used in the processing of information.  In some cases, the defaults are used "behind the scenes" while at other times, the defaults are displayed, and can be changed, prior to processing.

Workorder Daily Closing Defaults

Whenever a Workorder Closing is performed on workorders, the system  must post transactions to the General Ledger.  Although the program knows the  category of the account, it does not know the name you have  assigned, nor does it know the account number.  For this reason, you  must enter the account numbers in the General Ledger Default  Accounts - Closing screen.

All Assets, Liabilities, Income, and Expense accounts that have information generated by the creation of workorders are listed.  It is only  necessary to enter the assigned G/L account number.  In this manner, the system  will know where to enter the totals on the General Ledger.

The defaults shipped with the system are set for the provided  ledger.  Run a Chart of Accounts and compare the numbers to the  defaults to see how the system works.  The same account number may be used in several categories.

All  default numbers must have active accounts in the General Ledger.  This means that an account, with that number, must appear on the  Chart of Accounts.  Otherwise, processing errors will occur.

A/R - A/P Account Posting Defaults

Whenever charges and payments are posted to the Accounts Receivable  or Accounts Payable, they must also be posted as transactions to the  General Ledger.  To eliminate the need to enter the account numbers  for each transaction, defaults have been established.

These  defaults may be entered using the option in the G/L Defaults Menu.  The  data screen will be displayed, and the values  can be edited.   Remember to select the OK button after any changes are made so the values will be saved.

Most vendor accounts also have a General Ledger Debit Account  number.  It will override the default whenever a charge is entered  into the Payable posting.  For this reason, the debit account number  for Payable will usually be the resale parts account.

To better understand this concept, print a Chart of Accounts for the  default ledger shipped with The Accountant.  Then match the accounts  to the values entered on this screen to view which are actually  affected by the transactions.

Interest received, paid, and discounts can also be directed to specific accounts based on these defaults.  Enter the appropriate account numbers in the fields that are displayed.

Employee

Payroll expenses for employees can be grouped in several categories.  The account numbers for Debits and Credits should be entered.  If only one category exists, the same numbers will be provided in all fields.

Critical Note:  If you will write payroll checks from within Auto Shop Writer 8, then the CREDIT account numbers should be a Liability Holding Account.  When you write the check, this account is Debited and the bank account is Credited.  Then when you perform the Accounting, it is credited and the actual expense account is Debited.

The "Other deductions" field is a holding place for miscellaneous deductions that are witheld from an employee's paycheck.  In many cases, the values assigned to the actual deductions will override the defaults established in this section.

Ranges

The system needs to know the ranges in which accounts will fall.  The system uses the standard five categories, Assets, Liabilities, Capital, Income, and Expense.  The first, and last, possible numbers would be entered here.   Examples of these ranges can be found in the General Ledger account setup documentation.