This page addresses common questions related to adding or editing GL accounts, as well as issues in reports that may result from GL account settings.
How can I change the report type for a GL account?
On the GL account screen you can change the Report Type to either Balance Sheet or Income Statement. If this is set incorrectly a GL account might appear on the Balance Sheet when it should be on the Income Statement or vice versa.
If the GL account does not have any transactions posted to it, this can be changed by going to Admin > GL Account > Select the account > Click the edit icon > Update the Report Type > Save.
If transactions have been posted, please reach out to our support team to help.
Note: Typically Asset, Liability and Capital accounts have the report type Balance Sheet. Income and Expense accounts typically have the report type of Income Statement.
How can I change the Normal Balance for an account?
When editing or creating a GL account, you can set the Normal Balance to either be Debit or Credit. If you select the wrong one, then GL accounts might appear to be counting backwards. You might expect it to increase on reports but it’s decreasing, or vice versa.
This setting can be updated on a GL account whether or not it has transactions in it. Go to Admin > GL Account > Select the account > Click the edit icon > Update the Normal Balance > Save.
After changing the normal balance of a GL account, it is a good idea to Rebuild Account Tree. To do this, go to Admin > Toolbox > Rebuild Account Tree.
Note: Typically Asset and Expense accounts have the Normal Balance Debit. Liability, Capital, and Income accounts have the Normal Balance Credit.
How do I inactivate a GL account?
If you are no longer using a GL account, you can inactivate it. To inactivate it go to Admin > GL Account > Select the account > Click the edit icon > Select the check box next to Inactive > Save.
Note: Marking a GL as inactive does not hide it on reports. The only purpose of inactivating a GL account is to prevent further transactions from being booked to it. If an inactive GL account has a balance, it’s going to continue showing on reports.
How can I change the Account Type?
On the GL account screen you can change the Account Type to Regular, Heading or Total. You can only do this if there are no transactions linked to the GL accounts.
If a Regular account has transactions linked to it, then it cannot be changed to a Total or Heading account. You will see the following error: Report Type/Account Type cannot be changed. Account has transactions
Note: When editing the Account Type, keep in mind that the structure of the Chart of Accounts must be kept in tact. Accounts are grouped into sets by using a Heading account and a Total account as the "bookends" with the Regular accounts in the middle.
Why is an account not showing up on my Financial Report?
It is essential that the Chart of Accounts is set up using the correct structure.
If the structure is not followed, Header or Total accounts may be missing from financial reports. This can also cause Total accounts to calculate incorrectly, leading to inaccurate financial results.
GL Accounts are grouped into sets by using a Heading account and a Total account as the "bookends" with the Regular accounts in the middle, to create the following structure:
Heading account
- Regular account
- Regular account
Total account
Note: The name of the Total account must match the Heading account, with the word Total added. Example:
Heading Account: CASH
Total Account: TOTAL CASH