Accounting Settings is where default values for key fields and control accounts are set up. Each field is described in more detail below.
To access Accounting Settings, navigate to Accounting Home. Under the General Ledger Setup section, click the Accounting Settings tab.
Configuration Settings Tab
General Ledger Settings
- Default Ledger is the transactional ledger for the organization.
- Default Bank Account should be set to the main checking account. This is the account that the majority of payments are made from and that deposits are made to. When entering a cash receipt, it will default to this bank account and when creating a cash disbursement batch, it will also default to this bank account.
- Current Year Earnings GL Account is used to track current year’s earnings/net income in the Balance Sheet. When an accounting period is closed, the net income from the P&L will flow through to this Balance Sheet GL account. This is a required system account.
- Retained Earnings GL Account is used in the month end close process at year end to roll the prior years income into the balance sheet. This is a required system account.
- Enable Billing Period Sensitive Aging allows for the creation of AR Aging reports as of the end of any given prior Accounting Period. The default setting when Accounting Seed is installed is set to Off. Most clients will want to enable this setting as part of the initial setup. If done later it requires extra steps to re-open and then re-close any accounting periods that had been close.
- Default Revenue GL Account should be set to the main revenue account associated with your billings. This is just the organization-wide default, but other areas may override this like the Revenue GL account associated with a product.
Accounts Receivable and Cash Receipts Settings
- AR Control GL Account should be set to the main accounts receivable GL Account. Once transactions are posted to this GL account, this cannot be changed.
- Unapplied Cash GL Account is used as a clearing account when cash is received but not yet applied to a billing/customer invoice. This is a required account. It should be a balance sheet account, with Sub Type 1 of Assets. Non-profit organizations may want to set this GL Account to a revenue account if they do not use a billing process.
- Customer Payment Adjustment GL Account is used when taking payment discounts.
Accounts Payable and Cash Disbursements Settings
- Enable AP Period Sensitive Aging allows for the creation of AP Aging reports as of the end of any given Accounting Period. The default setting when Accounting Seed is installed is set to Off. Most clients will want to enable this setting as part of the initial setup. If done later it requires extra steps to 're-open' and then re-close any accounting periods that had been closed.
- AP Control GL Account should be set to the main Accounts Payable GL Account. Once transactions are posted to this GL account, this cannot be changed.
- Vendor Payment Discount GL Account is used when taking payment discounts due to vendor terms in the cash disbursements process.
- Prepaid Expense GL Account - Used as the default for the Debit GL Account on the Cash Disbursement in the case when the Cash Disbursement is not originated from one or many Payables and the Debit GL Account field is left blank upon entry.
Project Accounting Settings
- Labor Clearing GL Account will be the GL Account that is credited when a time card is posted. The design for Labor GL Account on Accounting Settings is to be a liability account like accrued payroll or payroll clearing. You would relieve this liability when you post your payroll entry from your payroll provider. When a time card is posted, a debit to the Labor GL Account on the project task and a credit to this Labor Clearing GL Account is created for each time card day.
- Default Project Task Labor GL Account is used to set the labor GL Account automatically on the project task. When a time card is posted, a debit to the Labor GL Account on the project task, (or if blank this Default Project Task Labor GL Account) and a credit to the Labor Clearing GL Account is created for each time card day.
Product Costing Settings
- Enable Product Costing books the cost of goods sold at standard cost in the Billing transactions. It also books purchase price variances in the Payable posting process. This should be enabled for customers that have inventory.
- Vouchers Payable GL Account is a clearing account used for received inventory that does not yet have a related payable transaction. Once transactions are posted to this GL account, this cannot be changed.
- Inventory Variance GL Account is used as the purchase price variance account between standard cost and the actual price paid for inventory.
- Work in Process GL Account is used as the WIP account for manufacturing work orders when building inventory.
PDF Format Settings
- Default Billing Format defines the default PDF format used to create the Billing PDF unless changed on the individual Billing record.
- Billing Outstanding Statement Format defines the PDF format to be used for the Customer Outstanding Statement.
- Billing Activity Statement Format defines the PDF format to be used for the Customer Activity Statement.
- Default Purchase Order Format defines the default PDF format used to create the Purchase Order PDF unless changed on the individual Purchase Order record.
- Default Packing Slip Format defines the default PDF format used to create the Packing Slip PDF unless changed on the individual Shipping record.
Time Card Settings
- Display Billable Flag in Time Card Entry checkbox will display the Billable checkbox on time cards. If enabled, users can select it on individual time card lines to show the line is billable to a customer.
- Label for Time Card Variable 1 is simply how the Time Card Variable 1 will appear on the Time Card Entry Screen. For example, instead of Time Card Variable 1, it could be called Location.
- Label for Time Card Variable 2 is simply how the Time Card Variable 2 will appear on the Time Card Entry Screen. For example, instead of Time Card Variable 2, it could be called Work Type.
Cash Flow Statement Settings
- Enable Cash Flow Statement allows a company the ability to run the cash flow statement. When enabled, it will populate the default cash flow categories.
- Default Cash Disbursement Category will default as cash disbursements are created, but can be overridden.
- Default Cash Receipt Category will default as cash receipts are created, but can be overridden.
- Default Journal Entry Line Category will default on a journal entry line that is populated with a GL account that has the bank checkbox checked, but can be overridden.
Bank Direct Connect Settings
- Default Vendor will populate in the bank direct connect screen when the “find matching data” button is clicked and there is not a related customer/vendor account. This is helpful for transactions that an account does not need to be created for. For example, a traveling salesperson that eats at many different restaurants and you do not have the need for a new vendor account for each restaurant.
Cash Dispersement PDF Offset Settings
The following fields can all be used to alter the positioning of the check when printed to allow for slight differences in printer and PDF alignment.
- Date Top Offset
- Date Right Offset
- Amount Top Offset
- Amount Right Offset
- Amount Words Top Offset
- Amount Words Left Offset
- Payee Top Offset
- Payee Left Offset
- Payee Address Top Offset
- Payee Address Left Offset
- Memo Top Offset
- Memo Left Offset
This tab allows a user to purge old information that is no longer needed and helps to keep data storage low. Any data purged in this area can be recreated if necessary besides the integrity reports since that is no longer a supported feature. Note: no transactional data will be deleted with this tool.
Please review this related article on connecting to Stripe
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