Chart of Accounts (tfgld0508m000)

Use this session to maintain ledger accounts.

On the appropriate menu of the overview session, you can click View Tree to display a graphical view of the ledger structure. If you select a ledger account, LN displays the structure of the ledger account. Otherwise, LN displays all ledger accounts.

Field Information

General
Ledger Account

ledger account.

General
Ledger Account Description

The ledger account's description.

Search Key

The search key allows you to rapidly search for the element in LN.

Text

If this check box is selected, a text is present.

Structure
Account Type
Balance Sheet

The account is used for transactions relating to the balance sheet items, that is the company's assets and liabilities. The value of the closing balance for a particular year, in relation to this type of account, is equal to the value of the opening balance of the next year for this ledger account.

Profit & Loss

The account is used for transactions relating to costs and revenues. No balance sheet values are calculated for the ledger accounts in this type of account. The values of these ledger accounts should be closed by the fiscal year.

Intercompany

The account is used for balance sheet accounts that include transactions between different companies controlled by the same holding company. This applies to transactions between companies in the same group and to transactions between companies from different groups.

Text

Accounts of this type are used to print text in a balance sheet. You must define a ledger account in which no transactions can be entered. If you select this ledger account during printing, LN prints the text you have defined for this account in the correct position.

Debit/Credit

Indicates the main use of the account.

For example, the main use of a cost account is Debit.

Budgets

The selection also depends on the account type:

  Balance Sheet Profit & Loss
Debit Asset Costs
Credit Liability Revenue

In the Controlling module, LN uses this field to determine whether the default amount is a credit amount or a debit amount.

Allocation Type

Indicates which costs can be posted or allocated to this account. This data is used in the Controlling module.

Dual Accounting Indicator

The dual accounting indicator is used to indicate the accounting scheme to which the ledger account belongs.

The accounting scheme can be either statutory or complementary.

Sublevel

The sublevel of a ledger account.

Allowed values

  • You cannot change the sublevel of existing ledger accounts once a transaction is posted.
  • Parent ledger accounts that have child accounts cannot be set to sublevel zero

If the sublevel is zero (0), you can enter transactions in the ledger account.

If the sublevel has a value greater than 0 (i.e., 1,2,3....9) no transactions can be entered in the ledger account.

The sublevels of the ledger accounts, help you print a summary of the data at a higher level in the ledger structure, for instance, within a trial balance.

Parent ledger accounts cannot have sublevel 0. A parent can be defined in the Statutory Parent Account or Complementary Parent Account field.

Statutory Parent Account

The parent ledger account, used to create a parent/child hierarchical structure.

Allowed values

Select an account that has:

  • The Dual Accounting Indicator set to Statutory
  • A sublevel higher than zero (0)

A statutory account can either have a complementary and statutory parent account. A complimentary ledger account can have a complementary parent only.

Note: Do not create loops by linking a parent ledger account to a child ledger account in the same hierarchy.

Complementary Parent Account

The complementary parent ledger account, used to create a parent/child hierarchical structure.

Allowed values

Select an account:

  • That is complementary
  • With a sublevel higher than zero (0)
Note: Do not make loops by linking a parent ledger account to a child ledger account in the same hierarchy.

Legal Ledger Account

An additional field to record the legal ledger account number. This legal account number is required in some countries.

Sometimes it is not possible to use this number as the normal account number. In that case, you can record the number in this additional field.

In several sessions you can choose between printing the normal or legal ledger account numbers.

Source of Earnings

The Source of Earnings account linked to the ledger account.

If you select Source of Earnings in the Balancing Method field of the Finance Company Parameters (tfgld0503m000) session, you can select a Source of Earnings account for Profit & Loss accounts that have sublevel zero.

Integration
Operations Management Integration

The Operations Management package to which the account is related.

If a relationship with Operations Management exists, LN starts the appropriate Operations Management session if you create a transaction for the ledger account.

Note: You can only create an integration account if the account has sublevel zero. In addition, this account cannot be used as a business partner control account.
Integration Account

If this check box is selected, the account is an integration account.

Logistic Company

In a multicompany environment you must specify in which logistic company the integration transactions must be recorded.

Allowed values

You can only set this field if you entered the Fixed Asset Integration field.

Fixed Asset Integration

The type of the relationship that exists with Fixed Assets .

If a relationship with Fixed Assets exists, you must specify an asset when you create a transaction for the ledger account.

Allowed values

  • Investment

    For each asset-related purchase invoice, the investment amount is updated.
  • Maintenance Costs

    Transactions in Accounts Payable or General Ledger update the expense costs associated with the maintenance of an asset.
  • Disposal

    For each asset-related sales invoice, a disposal transaction is generated in Fixed Assets .
Note: You can only create an integration account if the account has sublevel zero. In addition, this account cannot be used as a business partner control account.
Miscellaneous
Matching
Account Matching Properties

Select the appropriate account matching properties from the Account Matching Properties (tfgld1557m000) session.

Matching

If this check box is selected, the account is a matchable account.

Note: If you select this check box for a ledger account on which transactions already exist, you must first run the Rebuild History for Account Matching (tfgld1218m000) session before you can perform GL account matching on the ledger account.

Default Matching Sequence

The default series used for the matching transactions on this ledger account.

In the Create GL Account Matching Transactions - Manually (tfgld1217m000) session, you can change the series.

This field is enabled only if the Matching check box is selected.

Miscellaneous
Compression of Transactions

Indicates whether transactions on the ledger account can be compressed.

If this check box is selected, transactions are automatically compressed when you print reports in the following sessions:

  • Print Finalized Transactions - Ledger Account (tfgld1406m000)
  • Print Finalized Transactions - Dimension/Ledger (tfgld1407m000)

After printing the reports, LN does not save the compressed amounts in the database.

Include in Journal Book

If this check box is selected, transactions on the account must be included in the journal book.

If you clear the check box, you must use the Automatic Transactions (tfgld0130s000) to define a schedule for the ledger account, to balance the journal book entry. For the ledger account of the schedule, you must select the Include in Journal Book check box.

Print Sequence

The sequence in which LN prints the ledger accounts on various reports.

LN prints ledger accounts for which you do not enter a print sequence in numeric order or in alphanumeric order on the reports.

To print the ledger accounts in a specific order other than the alphanumeric order, enter a print sequence number. For example, you can use the print sequence number to print the child accounts followed by their parent account. Ledger accounts for which you define a print sequence are printed at the end of the reports, in the order of their print sequence numbers.

Default Tax Code

The default tax code for transactions posted to the ledger account.

For example, this is the default tax code for journal vouchers you create for the ledger account.

Expense Type

The default expense type LN links to payments posted to the account if the payments appear on a DAS 2 report.

Cash Flow Reason

The default cash flow reason LN links to transactions posted to the account.

If the account is used for a specific type of cash transactions that must appear on the cash flow statement, you can enter a cash flow reason.

Cash Flow Information Code

This code enables a company to report the cash flow at a detailed level, for example for each expense type. Cash Flow Information Codes are defined in session Cash Flow Information Structure (tfgld2560m000) session.

Note: 
  • This field is applicable only if the Detailed Cash Flow Information check box is selected in the Group Company Parameters (tfgld0101s000) session.
  • Only Cash Flow Information Codes with sublevel set to zero in the Cash Flow Information Structure (tfgld2560m000) session can be linked to the ledger accounts.
Units
Unit 1

The unit in which the account's quantities are expressed. For example, if you post fuel costs to the account, the unit can be litres.

This field is not defined for ledger accounts with sublevel greater than zero.

Unit 2

The unit in which the account's quantities are expressed.

The field is not defined for ledger accounts with sublevel greater than zero.

Blocking
Status

Indicates whether posting transactions to the account is blocked.

To allow all postings, select Free.

Blocking Effective From

The start date of the period that the account is blocked.

Blocking Effective To

The end date of the period that the account is blocked.

Multi Currency
Currency
Currency Base

The currency or currencies in which transactions are stored in the history.

For ledger accounts that you use for automatic transactions; for example, integration transaction or purchase/sales invoices, you must select Both.

Note: If you select Local currency, you can only use the ledger account for manual journal vouchers.

Allowed values

  • This field is only relevant if the account has a sublevel zero.
  • For statutory accounts, you can only select Local or Both.
  • For complementary accounts, you can only select Reporting or Both.
  • For the Balance Sheet account types for which you select the Calculation of Destination Gain and Loss check box, you can only select Local or Both.
Currency Analysis

The way in which currency differences are handled for transactions posted to the ledger account. For details, refer to Currency Analysis Indicator.

If you select Required, Calculate Currency Diff., you must select an account in the Currency Differences Contra Account field.

This field does not apply to accounts with sublevel 1 or higher.

For control accounts, you cannot select Required, Calculate Currency Diff.

Currency Differences Contra Account

The account to which currency differences are posted.

Calculation of Destination Gain and Loss
Required

If this check box is selected, LN calculates destination gain and loss for the transactions on the ledger account if you run the Calculate Destination Gain & Loss (tfgld5202m000) session.

Destination gain and loss can only occur in an independent currency system.

Destination Gain and Loss Accounts

The ledger accounts to which the calculated destination gain and loss is posted in the Calculate Destination Gain & Loss (tfgld5202m000) session.

LN posts the difference between the balances in the local currency and the reporting currency 1 to the Destination Gain Account 1 and the Destination Loss Account 1, and differences with the balances in the reporting currency 2 to the Destination Gain Account 2 and Destination Loss Account 2.

Note: By choosing an account in this field, you overrule the standard account defined in the Finance Company Parameters (tfgld0503m000) session.
Dimensions
Dimensions
Dimension Used Y/N

Indicates whether amounts posted to the account must also be posted to dimensions of the dimension type.

The dimension type can be:

  • Optional
  • Mandatory
  • Not Used
Optional

It is possible to enter a dimension.

Mandatory

It is mandatory to enter a dimension.

For segment reporting, this option is required.

Not Used

It is not possible to post transactions to a dimension for this ledger account.

Note: 
  • You can only link a dimension to a ledger account with sublevel zero (0).
  • If a dimension option for a Dimension Type is modified from Optional or Mandatory to Not Used, then rebuild of history is performed without a balance for that specific dimension type. However, for the underlying transactions that are already posted with a dimension, a difference between the totals and the transactions will exist, for the year in which the adjustment was performed.

Segment reporting – setup

Balance Monitoring
Balance Monitoring
Daily Balance

If this check box is selected, LN maintains daily balance information for the ledger account.

You can only select this check box for ledger accounts of level 0 (zero).

If you select this check box, you can display the distribution by period of the ledger history in the following sessions:

  • Daily Balances (tfgld2531m000)
  • Distribution by Date for Ledger Account (tfgld3533m000)
  • Distribution by Date for Dimension/Ledger Account (tfgld3535m000)

If you select this check box as well as the Business Partner Balance check box, you can display the distribution of the ledger history by period and by business partner in the following sessions:

  • Distribution by Date for Ledger Account by Business Partner (tfgld3534m000)
  • Distribution by Date for Dimension/Ledger Account by Business Partner (tfgld3536m000)
Business Partner Balance

If this check box is selected, for every transaction posted to the ledger account, LN records the business partner.

You can only select this check box for ledger accounts of level 0 (zero).

If you select this check box, you can display the distribution by business partner of the ledger history in the Distribution by Business Partner (tfgld3530m000) session.