Show TOC

Object documentationChart of Accounts Window Locate this document in the navigation structure

 

Use this window to define a chart of accounts for your company or organization.

To open the window, choose   Financials   Chart of Accounts  .

Chart of Accounts Window
Title, Active Account

After you have defined the G/L account code, you classify each G/L account as either Title or Active Account. An active account contains postings of transactions. A title account groups together all the active accounts below it.

For an active account to be summarized at title level in financial reporting, it must be assigned accordingly in the chart of accounts hierarchy.

You can differentiate titles and active accounts by their text color: titles appear in blue, active accounts appear in either green or black. Green accounts are control accounts or accounts that have been defined as default G/L accounts for automatic posting of transactions in SAP Business One. Black accounts are those active accounts that have neither been selected in G/L account determination nor control accounts.

G/L Account

Enter an alphanumeric code of up to fifteen characters (letters, numbers or a combination of both) for the account.

Name

Specify an account name of up to 100 characters.

External Code

Define an additional code for sorting purposes. The additional code is informational only and allows you to refine queries (customized reports).

Currency

The account currency is the currency in which all journal entries for that account are recorded. By default, the currency is defined as All Currencies.

In an all currencies account, transactions can be executed in a foreign currency without the account’s foreign currency balance having any significance. Therefore, the account can accept journal entries in different currencies.

Example Example

A foreign sales account can be used for every sale abroad, even though the sales are in different currencies. Accounts are then settled with these customers in their account currency (an American customer buys in US dollars). However, the revenue account accumulates revenue from all the various currencies. Since this account is not a debit/credit account, its updated foreign currency balance is not relevant, and you refer only to its LC (local currency) balance.

End of the example.

If you work with a number of countries but use only one revenue account, define this account as All Currencies.

If the account currency is defined as a foreign currency, all postings in this account are recorded in both the local currency (as required by law) and in the defined foreign currency.

If you define a foreign currency account and record transactions for it, you cannot later change the account currency or perform transactions in any currency other than the defined account currency.

Accounts defined as foreign currency accounts are usually foreign bank accounts, and so on.

A foreign currency account has two balances: a local currency balance and the account currency balance.

Confidential

Defines certain accounts as confidential, preventing unauthorized users (according to defined permissions) from using them or viewing their activities in the system.

Level

Define the level of the account.

  • Level 1 is the drawer level, so you cannot define an account or a title as Level 1.

  • Levels 2 to 4 are for either titles or accounts.

  • Only an active account can be defined at Level 5.

The number of levels in your chart of accounts may depend on your localization and common business practices. Some countries have a legally required number of levels.

Balance

The account balance displayed in the currency defined for the account, after various journal entries have been recorded.

Note Note

If the account is defined in a foreign currency, select LC from the field dropdown list to display the balance in local currency.

End of the note.
Account Type

You can define the account as a revenue account or as an expense account or as a different type of account (“other”).

This field is used for information purposes only.

Control Account

Defines this account as a control account. Control accounts are linked to business partners and reflect their activities in the financial reports. Only accounts defined in the Assets and Liabilities drawers can be defined as control accounts. Control accounts appear in the chart of accounts in green.

Note Note

Once the account has any transaction posted to it, you cannot change the status by selecting or deselecting the checkbox.

End of the note.
Cash Account

This checkbox appears in the first three drawers that include the balance sheet accounts, and defines an account as a monetary account.

Cash flow statements refer only to monetary accounts. SAP Business One defines the following as monetary accounts: cash funds and bank accounts (current and short-term deposits).

Note Note

An account cannot be defined as indexed and monetary at the same time. Therefore, selecting the Indexed Account option automatically clears the Monetary Account option and vice versa.

End of the note.
Indexed

Defines an account as indexed.

SAP Business One revalues only indexed accounts when performing valuations of financial statements to an index. Indexes are defined in   Administration   Exchange Rates and Indexes  .

Reval. (Currency)

Select this box for companies whose defined currency is not the local currency.

Selecting this box enables you to:

  • Generate a conversion differences report for the account.

  • Produce an automatic differences reconciliation to adjust the balance of the account in the system currency to the balance in the account currency.

Cash Flow Relevant

Specify G/L accounts that are cash flow relevant. The objective of the assignment process is to generate the Cash Flow report.

Note Note

This field is visible only for active accounts at the asset level.

End of the note.

Note Note

For localizations other than China, Korea, and Japan, the default value of the checkbox indicating a cash account (that is, the Cash Account checkbox of the G/L account is selected) is selected.

End of the note.
Project

If required, select the checkbox to set the G/L account as relevant to project. If required, you can further choose Choose from List (Choose from List), and in the List of Projects window, select a default project.

You can change the checkbox status and the default project field at any time.

Note Note

For G/L accounts relevant to project, SAP Business One performs actions, defined on the Cost Accounting tab of the General Settings window, under   Administration   System Initialization   General Settings  , for postings in which such G/L accounts are without project assignment.

End of the note.
Distribution Rule
  • If you did not select the Use Multidimensions checkbox on the Cost Accounting tab of the General Settings window, under   Administration   System Initialization   General Settings  , the section displays one checkbox and one default distribution rule field.

  • If you selected the Use Multidimensions checkbox, the section displays checkboxes and their default distribution rule fields for the active dimensions.

    Only active dimensions are displayed. You can set the active status of dimensions in the Dimensions window under   Financials   Cost Accounting   Dimensions  .

If required, select one or more checkboxes to set the G/L account as relevant to distribution rules of corresponding dimensions. If required, you can further choose Choose from List (Choose from List) , and in the List of Distribution Rules window, select a default distribution rule for the corresponding dimension.

You can change the checkbox status and the default distribution rule field at any time.

Note Note

Distribution rule fields are displayed only for G/L accounts of type Sales or Expenditure.

End of the note.

Note Note

For G/L accounts relevant to distribution rules, SAP Business One performs actions, defined on the Cost Accounting tab of the General Settings window, for postings in which such G/L accounts have no distribution rule assigned to the selected dimensions.

End of the note.
Account Details

Opens the G/L Account Details window in which you can define and add more information pertaining to the account.

Country-Specific Fields: China GB Interface
Account Structure Level

Specify the structure level of the accounts to be exported by GB Interface.

  • Option 1: displays the highest level titles of the accounts.

  • Option 10: displays the most detailed level of the accounts under this title.

Note Note

GB Interface exports only those accounts assigned an Account Structure Level value.

End of the note.
Measurement Unit

Specify the measurement unit.

Direction of Balance

Specify the balance status: credit or debit.

Country-Specific Fields: Mexico & Chile
Reval. by Index

G/L account is subject to G/L accounts revaluation.

Post G/L Reval. Differences to Account

This field appears only after the option Reval. by Index is selected. Specify a G/L account for recording the revaluation differences transaction.

Country-Specific Fields: Israel
Tax Exempt

The Tax report considers the transactions pertaining to this account as tax-exempt.

Advance Payment

Includes the transactions related to this account in the Advances on Corporate Income Tax on Sales report.

Include in PCN874

Note Note

The checkbox is visible only if you do not select the Tax Liable checkbox on the Accounting Data tab in the Company Details window.

End of the note.

Selecting the checkbox indicates that the G/L account is relevant to the PCN874 report. The transactions involving this G/L account are then included in the PCN874 report.

By default, the checkbox is selected for all existing and new active accounts of type Sales and Expenditure.