Defining system accounts

System accounts are detail accounts that are used for system generated entries. You must define system accounts for each chart of accounts. This procedure describes the process for defining system accounts.

  1. Access Chart of Accounts (GL00.1).
  2. Click System Accounts on GL00.1 to access System Accounts (GL00.7).
  3. Define system accounts using these guidelines to specify the field values:.
    Retained Earnings, Undistributed Retained Earnings

    Select the retained earnings account and the undistributed retained earnings account to use when running the Journal Posting program or closing a fiscal year.

    Error Suspense

    Select the detail account used to post out-of-balance or invalid journal entries. The error suspense account keeps journal entries in balance. To select different error suspense accounts for different system codes, click By Systems.

    Currency Translation Gain/Loss Accounts

    If you use currency translation, then you must define translation gain and loss accounts.

    Report Currency Adjustment, Auto Adjustment

    If you use report currency or auto base balancing, then you must define these two balancing accounts.

    Encumbrance and Commitment Accrual

    Define an Accrual Account to automatically create GL reversing transactions for recording accrual on outstanding commitments and encumbrances.