Accounting Units-Accounts (GL20.1)

Use Accounting Units-Accounts (GL20.1) to define and maintain an accounting unit for a general ledger company. An accounting unit represents a division, department, business center, region, store, and so on, depending on your organizational structure. There are two types of accounting units: Posting and Summary.

Posting accounting units are the lowest level of a general ledger company structure and are used to create journal entry transactions. Posting accounting units consist of detail accounts. Detail accounts are used to group and separate information within the accounting unit. When you create journal entries, totals are summarized for each detail account within the accounting unit, creating one total for each posting accounting unit. Each posting accounting unit total is then summarized for its summary accounting unit.

Summary accounting units consist of posting accounting units. Like a summary account contains detail accounts. Summary accounting units store consolidated information from lower level posting accounting units. They are used for analysis and summarized reporting.

Define accounting units from the top of your company organizational ladder to the bottom. This will help you assign the correct level address to each accounting unit. Define all summary accounting units before defining the lower-level posting accounting units. To assign an address, enter or select an address code.