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.

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

Specify an account name of up to 100 characters.

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

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.

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.

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

Define the level of the account.

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.

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

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.

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.

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).

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 .

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

Selecting this box enables you to:

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

If required, select the checkbox to set the G/L account as relevant to project. If required, you can further choose (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.

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) , 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.

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