Overview

Default GL Accounts define the posting accounts Accounting Seed uses for each transaction type. You can configure different defaults for each Transactional or Budget Ledger from the Configurations screen.

In this article:

• Ledger
• Multi-Currency Settings
• Accounting Close
• Accounts Receivable
• Accounts Payable
• General Ledger
• Cash Basis Accounting
• Revenue & Expense Amortization Defaults
• Project Accounting
• Product Costing
• Edit Default GL Accounts

Note:

• Custom Default GL Accounts can be created and added to the Default GL Accounts screen. For more information, see Add a Custom Default GL Account.
• If more than four GL Accounts display on a row (including custom ones), additional accounts wrap to the next row.
• Once transactions are posted to the GL Accounts they cannot be changed.

Ledger

If you have more than one Ledger, use the Ledger drop-down list to select and configure default GL Accounts for that Ledger. Different defaults can be set for each Transactional Ledger. When records such as Billings and Cash Receipts are created, the default GL Accounts populate based on the Ledger selected on the record.

If you have a Default Ledger configured, the Ledger drop-down defaults to that Ledger. Otherwise, the org-level Default Ledger displays.

When setting up default GL Accounts by Ledger, keep the following in mind:

• Transactional and Budget Ledgers created automatically for new Accounting Seed users are available in the Ledger drop-down list.
• For existing users, Transactional and Budget Ledgers are available in the drop-down with default GL Account records created automatically. To use different GL Accounts for a specific Ledger, select it and update the accounts as needed.
• If you use Consolidations, GL Account Default records are created automatically for all existing Ledgers.

Note: After installing or upgrading Accounting Seed, review the Default GL Accounts screen to confirm accounts display correctly for each Transactional Ledger. If no accounts display, click Create GL Account Defaults to populate them automatically. For new users, this populates from out-of-the-box GL Accounts. For existing users, it populates based on your Default Ledger.

When you create a new Ledger and select it from the Ledger drop-down, it inherits the GL Accounts from your Default Ledger. Update them as needed for the new Ledger.

The following GL Accounts are global and not configured per Ledger:

• Default Project Task Labor GL Account: Because the Project and Project Task objects do not include a Ledger field, this account applies org-wide.
• Cash Flow Statement GL Accounts: Set up in Enablements. Ledger-specific defaults are not supported for Cash Flow GL Accounts.
  • Default Cash Disbursement Category
  • Default Cash Receipt Category
  • Default Journal Entry Line Category

When reviewing GL Accounts for each Transactional Ledger, ensure these fields each have a unique GL Account:

• Current Year Earnings GL Account
• Retained Earnings GL Account
• AR Control GL Account
• Default Revenue GL Account
• Customer Payment Adjustment GL Account
• Unapplied A/R GL Account
• AP Control GL Account
• Vendor Payment Discount GL Account
• Prepaid Expense GL Account
• Labor Clearing GL Account
• Default Project Task Labor GL Account

Multi-currency orgs must also have unique values for: Currency Gain/Loss GL Account and CTA GL Account.

Orders & Inventory orgs must also have unique values for: Vouchers Payable GL Account, and for Standard Cost users, Inventory Variance GL Account and Work in Process GL Account.

Multi-Currency Settings

GL Accounts in the Multi-Currency Settings section include the Currency Gain/Loss GL Account and the CTA GL Account.

Currency Gain/Loss GL Account

Note: This is a required system account when Multi-Currency is enabled.

Accounting Seed automatically calculates and records realized currency gains and losses due to exchange rate differences in these scenarios:

• Cash Receipts: When a foreign-denominated Cash Receipt is applied to a related foreign-denominated Billing, Accounting Seed calculates and records the realized gain or loss at cash settlement.
• Cash Disbursements: When a foreign-denominated Cash Disbursement is applied to a related foreign-denominated Payable, Accounting Seed calculates and records the realized gain or loss at cash settlement. This includes payments processed using Pay & Post; realized gains or losses post when the batch is posted.

CTA GL Account

The Cumulative Translation Adjustment (CTA) GL Account balances the Trial Balance during the Consolidations process after Foreign Currency Translation using various exchange rates.

Accounting Close

• Current Year Earnings GL Account tracks the current year's earnings and net income on the Balance Sheet. When an Accounting Period is closed, net income from the Profit & Loss flows to this account.
  • Note: Transactions cannot be posted directly to this account.
• Retained Earnings GL Account is used in the year-end close process to roll the prior year's net income into the Balance Sheet. This posts automatically when the final Accounting Period of the year is closed.

Accounts Receivable

• AR Control GL Account should be set to your Accounts Receivable GL Account.
• Default Revenue GL Account should be set to the main revenue account for Billings. This is the org-wide default. The Revenue GL Account on a product or on a Billing Line overrides this value.
• Customer Payment Adjustment GL Account is used when recording payment discounts.
• Unapplied AR GL Account is a clearing account for cash received but not yet applied to a Billing or Customer Invoice. This is a required account. Set it to a Balance Sheet account with Sub Type 1 of Assets and Sub Type 2 of Current Asset. Non-profit organizations that do not use Accounting Seed's Billing functionality may set this to a revenue account.
• Unapplied Prepayments GL Account should be set when using Prepayments in an Accrual Ledger. A prepayment from a customer creates a Cash Receipt that debits this account instead of the Unapplied AR GL Account.

Accounts Payable

• AP Control GL Account should be set to your Accounts Payable GL Account.
• Vendor Payment Discount GL Account is used for payment discounts applied during Cash Disbursements.
• Prepaid Expense GL Account is the default Debit GL Account on Cash Disbursements that do not originate from a Payable and where the Debit GL Account is left blank.

General Ledger

Rounding GL Account

The Rounding GL Account catches transaction amount discrepancies from posting foreign currency Journal Entries. Create a GL Account that meets the requirements below, then set it in the Default GL Accounts screen.

Requirements:

• GL Account Type cannot be Cash Flow.
• The Bank/Credit Card Account checkbox must be unchecked.
• The Deferred GL Account checkbox must be unchecked.
• The Recognition GL Account field must be blank.

Cash Basis Accounting

When using Multi-book or Cash Basis Accounting, configure these GL Accounts:

• Unapplied Expense GL Account: Cash Disbursements post to this account initially. When applied to a Payable, the entry reverses and posts to the Expense GL Account(s) on the Payable.
• Unapplied Revenue GL Account: Cash Receipts post to this account initially. When applied to a Billing, the entry reverses and posts to the Revenue and Tax GL Account(s) on the Billing.
• Unapplied Prepayment Revenue GL Account: When using Prepayments on a Cash Ledger, a prepayment creates a Cash Receipt that debits this account instead of the Unapplied Revenue GL Account.

Revenue & Expense Amortization Defaults

Amortize Revenue

• Default Deferred Revenue GL Account is the Debit GL Account when amortizing a Billing.
• Default Revenue Recognition GL Account is the Credit GL Account when amortizing a Billing.

Amortize Expense

• Default Deferred Expense GL Account is the Credit GL Account when amortizing a Payable.
• Default Expense Recognition GL Account is the Debit GL Account when amortizing a Payable.

Project Accounting

• Labor Clearing GL Account is credited when a time card is posted. Use a liability account such as accrued payroll or payroll clearing. When a time card is posted, Accounting Seed debits the Labor GL Account on the project task and credits this account for each time card day. Relieve this liability when posting payroll from your payroll provider.
• Default Project Task Labor GL Account sets the Labor GL Account automatically on new project tasks. When a time card is posted, Accounting Seed debits the Labor GL Account on the task (or this default if the task field is blank) and credits the Labor Clearing GL Account for each time card day.

Note: The same GL Account can be used for both the Labor Clearing GL Account and the Default Project Task Labor GL Account.

Product Costing

• Vouchers Payable GL Account is a clearing account for received inventory that does not yet have a related Payable.
• Work in Process GL Account is the WIP account in Accounting Seed's manufacturing process when building inventory.
• Inventory Variance GL Account is the purchase price variance account between Standard Cost and the actual price paid for inventory. Note: If Weighted-Average Cost is enabled, the Inventory Variance GL Account field does not display.

Edit Default GL Accounts

Custom Default GL Accounts can be created and added to the Default GL Accounts screen. For more information, see Add a Custom Default GL Account.

Note: If you access Default GL Accounts from the Ledger screen using the Ledger GL Defaults button, the selected Ledger displays automatically without the drop-down list.

Warning: Some GL Accounts cannot be changed once transactions are posted. Review the callouts in each section before editing.

1. Navigate to Accounting Home > Setup > Configurations > Default GL Accounts.
2. Select the appropriate Ledger from the drop-down list.
3. Click the Pencil icon to the right of Default GL Accounts.
4. Edit the GL Accounts as needed. Use the Lookup icon to search by GL Account number, or enter the number directly.
5. Click Save.

Note: To edit a GL Account record itself (not just the default value), hover over the GL Account and click Edit. The Edit dialog box displays.

Note:  If you want to edit a single GL Account record, mouseover the GL Account. Then, click Edit:



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