What are Memo Accounts?

Memo accounts are used to record non-financial data that should not be included in the trial balance. For example, they might be used to:

  • keep a diary of repayments due on loans.
  • record Personnel information for inclusion in reports.
  • present alternative valuations of assets and liabilities in reports.
  • record ratios or percentages for use with the Corporate Allocation functions.

Once you have posted transactions to a memo account, you cannot subsequently amend the account type, and vice versa.

Generally, SunSystems treats memo accounts like balance sheet accounts, carrying forward balances from one year to the next. They do not have customer or supplier details. It is a good idea to give all your memo accounts codes which are quite separate from other account types, so they can be easily identified.

You can post to them using either double or single sided entries, but they cannot be used as a balancing entry for a posting to another account type. This ensures that the postings of all other account types remain in balance. When SunSystems is checking that a journal is in balance, it ignores postings to memo accounts.

These posting rules apply to all of the posting functions, including:

  • Corporate Allocations Run (CAL)
  • Asset Disposal (Fixed Asset Register)
  • Depreciation Calculation (Fixed Asset Register)
  • Ledger Entry (LEN)
  • Ledger Import (LIM)
  • Ledger Revaluation (LER)
  • Payment Collection Run (PYC)
  • Payment Run (PYR)
  • Account Allocations (ACA)
  • Transaction Matching (TRM)

Memo accounts are included in all reporting functions except Trial Balance. They can be shown on transaction listings but the values are not included in the journal totals.