Add a General Ledger account

Accounts (General Ledger accounts) are where you post balance sheet, income statement, and statistical transactions. Accounts make it easier to track the transaction type, such as Accounts Payable, Accounts Receivable, Inventory, and their different subaccounts. The list of all of a company's General Ledger accounts is called its Chart of Accounts.

Subscription

Company

Regional availability

All regions

User type Business user
Permissions Accounts: View, Add, Edit
  1. Go to General Ledger >  All > and select Add (circle) beside General Ledger Accounts. The General Ledger Accounts page appears.

  2. Enter information for the account.

    Accounts field descriptions
    Field Description
    Account number

    You see this field if you do not use subaccounts. Enter the primary account number.

    This number must be a specific length, which is set on the Accounting tab of the Company Information page. For example, if your system uses account numbers that are 4 characters long, you can create an account number of 1024, but not 10245.

    The account number length might differ between companies.

    This number cannot be changed after the account is saved, unless you allow changes to account numbers and you have permission to make such changes.

    We recommend against using leading zeros as part of an ID, or creating IDs that are only zeroes. IDs with leading zeros can cause errors with integrations, or when you import information into your company from Excel because Excel removes the leading zero. Use a character as a prefix to your ID.

    • Correct: C0001
    • Incorrect: 00C43

    Workaround: if you must use leading zeros in IDs, use Excel to convert the column of ID numbers to text format before importing the file content. Excel will not remove the leading zeros when you save the file. Remember to do this every time you use a template to import information that requires IDs.

    Learn more about best practices for creating names and IDs.
    Primary and subaccount numbers

    You see these fields if you use subaccounts. Enter the primary account number as described above, and enter any subaccount numbers that you want (subaccounts are optional).

    We recommend using dimensions instead of subaccounts as a method of organizing accounts. This greatly simplifies reporting and avoids possible confusion when rolling up for reports, because subaccounts are not included in roll ups in reports. For the same reason, if you use subaccounts we recommend that you do not put amounts into the parent GL accounts.

    Learn more about dimensions.

    As with primary account numbers, subaccount numbers must be a specific length, which is set on the Accounting tab of the Company Information page.

    For example, your system uses primary account numbers that are 4 characters long and subaccount numbers that are 3 characters long. You can create account numbers such as 1024-100 or 1024-100-300-400.

    A 4-digit primary account length with a 3-digit subaccount length with dashes as separators looks similar to 1234-100. In this example, the total number of characters used is 8.

    Continuing this example, you have 5 subaccount boxes of 3 characters each. So you can have a primary account for Contracts with the first subaccount indicating Unbilled deferred income (100) and the second subaccount indicating Subscriptions (300). This example looks like 1234-100-300.

    Partially filled subaccount boxes are not supported, which means that if you do not use a subaccount box, you must fill it in completely. If your subaccount length is set to 0, there are no subaccounts defined.

    For example: 

    • Primary length = 24

      No subaccount is possible because the primary account uses the maximum available digits.

    • Primary length = 4

      Subaccount length = 9

      You'll have 2 subaccount boxes, and each one accepts 9 digits.

    • Primary length = 4

      Subaccount length = 3

      You'll have 5 subaccount boxes, and each one accepts 3 digits.

    • Primary length = 4

      Subaccount length = 5

      You'll have 3 subaccount boxes, and each one accepts 5 digits.

    • Primary length = 6

      Subaccount length = 9

      You'll have 1 subaccount box, and it accepts 9 digits.

    Subaccount box sizes do not change based on the number of characters they can hold. On the page, they appear large enough for 3 characters, but they accept more if your subaccount length is longer than 3.

    Each box is a different subaccount.

    Account numbers cannot be changed after the account is saved, unless you allow changes to account numbers and you have permission to make such changes. For more information, see Change GL account numbers.
    Title Enter the name of the account. This is the title that appears on report headings. Example: "Assets."
    QuickStart Category

    The Category field is available only for companies that were created with a QuickStart template or selected one later. Categories are permanently preassigned to account groups, which are used in pre-designed financial reports and graphs.

    If enabled, select a category for the account. Based on the category selection, the account automatically prefills Account type, Normal balance, and Period end closing type.

    For example, assign the Petty Cash account to the category Cash and Cash Equivalents. That category is assigned to the Cash and Cash Equivalents account group and appears on financial reports and graphs that contain this account group. If you do not want this account to be in your financials, delete the text in this field so that it's blank.

    Categories are part of the QuickStart template, and are included in the chart of accounts import template. Use the template to import chart of account information, including the categories assigned to your accounts.

    You can't create new categories.

    By default, the categories "Manpower" and "Direct Materials" are assigned to account groups that are only used in the reports "Project Profitability" and "Project Estimation versus Actual." These 2 categories do not appear in balance sheet reports or income statements. If you assign an account to either of these categories, and you want it to appear in your reports, manually assign these categories to the appropriate account groups.

    If you need to assign categories to many accounts, the easiest way is to export your chart of accounts. Then modify the Excel upload template as needed and upload the file.

    For more information, see QuickStart overview.
    Account type

    Select an account type:

    • Balance sheet account

      Snapshot of the current state of a company's assets, liabilities, and equity at a specific time.

    • Income statement account

      Sometimes called Profit and Loss statements, these are cumulative for the selected period.
    Normal balance

    When you create an account, you specify whether the normal balance, from an accounting standpoint, is a debit or credit. For example, expense accounts are normally a debit. Sales accounts are normally a credit. If you were to run a Trial Balance report, the normal balance of the account is what determines whether the account is a credit or debit.

    Period end closing type

    Specify whether the account is a closing or non-closing account. This determines whether activity in the account is included in your close-into account, which you select in the Close into account field.

    There's another period end closing type: closed to account. This period end closing type is automatically set for close-into accounts. You cannot manually set this period end closing type (including by importing data or using the API).

    If an account is selected as the close into account for a closing account, you cannot change the period-end closing type for the account.

    On reports, your Close-into account shows period end totals calculated through a virtual close. For more information about how period end totals are calculated due to a virtual close, see Close books.

    Income statement accounts should be closing accounts.

    Balance sheet accounts should be non-closing accounts.
    Close into account

    For income statement accounts, enter the account into which they close. Depending on your organization type, you'll typically use one of the following as your Close Into Account:

    • Retained Earnings. Use this if your organization is a for-profit company.
    • Net Assets. Use this if your organization is not for profit.

    Sage Intacct zeroes closing accounts into your close-into account at year-end, but does not create closing entries. Instead, period end totals are calculated when you run reports.

    Do not create manual closing entries, and do not post directly to the close-into account. This will cause incorrect period end totals to be calculated on reports.
    GL account alternative

    To set up this account so that it can be used to override the default AP or AR General Ledger account, select the type of GL account that it can override:

    • Payables account: adds the account to the filtered list of AP GL accounts available as override accounts for AP supplier invoice and adjustment transactions, and transactions involving a specific supplier.
    • Receivables account: adds the account to the filtered list of AR GL accounts available as override accounts for AR sales invoice and adjustment transactions and transactions involving a specific customer.

    You can set up any account as an available override account, but typically you use AR or AP accounts.

    As you enter transactions, you can select the same alternative GL account for all line items, or select alternative accounts individually per line item. In Supplier and Customer pages, you can select 1 alternative GL account to use for balancing all transactions involving the supplier or customer.

    If you override the default account for a transaction, the override account you used can never be deleted or have its status set to Inactive. Also, the account will always remain available as an override account.

    This field applies only to AP supplier invoices, AR sales invoices, and adjustments. It does not apply to recurring AP supplier invoices or AR sales invoices, manual payments, manual deposits, or advances.

    Tax return code and M-3 return code

    To enable tax codes for your GL accounts, go to Company > Admin > Subscriptions. On the Subscriptions page, select General Ledger, then select Configure. When the General Ledger Setup page opens, scroll down to the Compliance and tax section and select Enable tax codes.

    Go to Configure General Ledger for more details.

    If you use 3rd-party applications to prepare client tax returns, enter the tax code in the Tax return code box to map tax codes to the tax forms you'll use. Whether you fill out 1 or both of these tax code boxes depends on which item or items your tax software requires. For example, you use GoSystem Tax, and you want to map tax return codes to a tax form, such as Form 1120, complete the Tax return code box. Similarly, to map M-3 return codes to your M-3 form, you must complete the M-3 return code box.

    Status

    Accounts can be active or inactive.

    Inactive accounts are not used in calculating allocations, and they do not appear in list pages, dropdown lists, or pick lists. (You can still list inactive accounts by selecting the Include inactive checkbox.)

    You cannot make a GL account inactive if the account is selected in the configuration page of an application or if it's being used in a budget.
    Regularization account

    Select this checkbox to designate this account as a regularization account.

    To comply with regional reporting requirements, you can now set up regularization accounts. A regularization account is an account that can be classified as either an asset or a liability on the balance sheet.

    The account classification depends on the account balance at the time that the financial report is run. If the account's balance does not match its normal balance, the account is eligible to be reclassified.

    To learn more, see About regularization accounts.
    Reclassification account

    For regularization accounts, select a reclassification account.

    When a regularization account is reclassified, its balance is moved to this reclassification account.

    If the regularization account is an asset, the reclassification account should be a liability account. Conversely, liability accounts should be reclassified as asset accounts.

    To learn more, see About regularization accounts.

    This field is available only if Regularization account is selected.

    Disallow direct posting Select Disallow direct posting to prevent direct entry of journal entries to the subledger control account (for example Accounts Payable or Accounts Receivable). Use this control to ensure that the account balance for the subledger account is accurate and has the necessary subledger details supporting the figure. This is opposed to a direct entry, which is not reflected in the subledger application area.
    Enable GL account reconciliations for this account

    Select this checkbox to enable GL account reconciliations for this account.

    GL account reconciliations is an accounting reconciliation process in which you match debits and credits using unique lettering codes. To learn more, see GL account reconciliations.

    The checkbox is available only if you selected Balance sheet in the Account type field.

    GL account reconciliations sequence

    Select the document sequence to use when matching transactions for this account.

    If you do not select a sequence here, the GL account reconciliations sequence selected in Configure General Ledger is used instead. If there's no GL account reconciliations sequence selected in Configure General Ledger, you must select one here.

    This field is available if Enable GL account reconciliations for this account is selected.

    Require dimensions In this section, select checkboxes to require dimensions for transaction entries assigned to this account. All selected dimensions will be required.

    A dimension is a category of data that you can organize and sort in meaningful ways. Sage Intacct provides the following predefined dimensions:

    • Location
    • Department
    • Class
    • Customer
    • Item
    • Project
    • Supplier
    • Employee
    • Warehouse (if you subscribe to Inventory Control)
    • Contract (if you subscribe to Contracts)

    In addition, Intacct enables you to define new dimensions to suit your needs. Use these user-defined dimensions to organize and sort categories of data unique to your business. For example, if you’re a software company with multiple product lines, you can create a user-defined dimension called Line of business. Then add the values Direct customers, Channel partner, and OEM.

    Dimensions enable you to collect, sort, analyze, and report on data within one category, or between categories, so you can identify key factors such as:

    • Your most profitable or most costly items or customers
    • The return on investment of a project or department
    • Whether and to what degree a new product or product line is successful
    • Which way a particular aspect of your business is trending
    • Intacct dimensions give you fine control over data definition and data hierarchy

    With dimensions, you can customize financial reports around specific business activities, get greater visibility into how the business is doing, and make faster, more meaningful business decisions.

    Think of dimensions as a more powerful alternative to subaccounts.

    Additional fees can apply for the Project dimension and user-defined dimensions. Contact your account representative for more information.
  3. If you set up reporting accounts that represent alternate charts of accounts, you can use the Reporting accounts mapping section to map GL accounts. Learn about other tools for mapping reporting accounts.

    Reporting accounts is an optional feature in the General Ledger that lets you generate and display reports using account sets other than your General Ledger accounts. This is most common for companies that have clients, owners, or other governing bodies who need to see reports in their own charts of accounts.

  4. Select Save.
    To save this record and create another one, select Save & New. Another blank Information page appears for you to enter the name and description of the next record you want to add.

Import General Ledger accounts

The enhanced list for General Ledger accounts allows you to use the import service to import account information.

To open the import service:

  1. Go to General Ledger >  All > and select General Ledger Accounts.

  2. Ensure that the enhanced list is turned on.

  3. Select Import.

    The Import service opens.

Learn how to import General Ledger accounts with the import service.