Account Type

On the Chart of Accounts form, select an account type. This field is used in reports and processing throughout the general ledger.

For example, the net income amount on financial statements is calculated using the domestic currency amounts for revenue and expense accounts.

The following are valid account types:

• Asset (required): anything owned by an individual or a business, which has commercial or exchange value. Assets may consist of specific property or claims against others, in contrast to obligations due others. For more information about assets, see the Fixed Assets Overview or the Fixed Asset Steps topics.
• Expense (required): the amount of assets or services used during a period.
• Liability (required): a loan, expense, or any other form of claim on the assets of an entity that must be paid or otherwise honored by that entity.
• Owner's Equity (required): total assets minus total liabilities.
• Revenue (required): inflow of assets from selling goods and providing services to customers; including the reduction of liabilities from selling goods and providing services to customers.
• Statistical (optional): used for reporting only, and is not processed through the general ledger.
• Analytical (optional): appears only if you have selected the Use Analytical Ledger check box on the General Parameters form. With this option, the type's value will now default to "Analytical" and will not be updateable when adding a new account. You also have to be in a Site which reports to an Entity. For more information, see the Analytical Accounting definition.
• Allocation (optional): lets you allocate percentages of specific costs across multiple accounts. Use the Chart of Account Allocations form to define expense distribution. Add allocation accounts to the beginning or end of your Chart of Accounts so that they are easier to exclude from your financial statements by specifying a range of account numbers.

On other forms, the account type displays.