Best practice to set up the profit and loss and balance sheet structures

We recommend that, before you add, upload, or import group accounts, you verify that the profit and loss and balance sheet structures comply with the binding accounting principles. Doing so helps to ensure that the consolidated financial statements are presented correctly.

This table shows the best practice to set up the profit and loss and balance sheet structures:


Property	Profit and loss account	Balance sheet account
Currency Method	Use one of these currency translation rate types: A: Average rate WA: Weighted average rate. Used to make the calculation more precise. Can be used only if you perform a monthly consolidation.	Use the closing rate (F) but for equity accounts, participation accounts, and sometimes fixed assets, use the average rate (A) or one of these historical rate types: H: Historical rate HI: Historical rate intercompany HS: Historical rate schedule HD: Historical rate schedule and intercompany Which historical rate type you choose depends on how precise the translation into the group currency must be. More precise calculations require greater user effort to specify correct rates. See "Currency translation".
Type	Use one of these types: E: Expenses. Money that the entity spends to produce goods or services for sale. For example, office supplies, utilities, advertising. R: Revenue or income. Money that the entity earns through the sale of products or services, and interest and dividends from marketable securities.	Use one of these types: A: Assets. Tangible and intangible items that the entity owns and that have value. For example, cash, computer systems, patents. L: Liabilities. Money that the entity owes. For example, mortgages, vehicle loans.
Schedule	Leave this property blank. Typically, profit and loss accounts are not assigned to schedules.	Balance sheet accounts are usually displayed in a schedule. If a more detailed analysis through a schedule is required, then you must assign the account to one of the available schedules This property is optional for the balance sheet accounts.
Data Entry	Use this property to display the accounts on the data entry pages.	Use this property to display the accounts on the data entry pages.
Entity Journal	Use this property to display the accounts in the entity journal editor and entity list.	Use this property to display the accounts in the entity journal editor and entity list.
Group Journal	Use this property for all base group accounts and to display these accounts in the group journal editor.	Use this property for all base group accounts and to display these accounts in the group journal editor.
Entity Report	Use this property to display the accounts in the entity reports.	Use this property to display the accounts in the entity reports.
Group Report	Use this property to display the accounts in the group reports.	Use this property to display the accounts in the group reports.