Every transaction has to be associated with an Account and every Account must be in an Account Group. The list of Accounts and the Account Groups in which they sit is often called the Chart of Accounts.
Appropriate choice of Accounts allows you to categorise receipts and payments under logical headings. Thus you might have payment accounts for Stationery, Computer supplies, Salaries, Grounds maintenance, etc. and receipt accounts for Precept, Bank interest, Burial fees (for councils with a cemetery), etc. The name of an Account is called its Account Code.
When the software is first installed it comes with three Account Codes already set up. These are
- Miscellaneous receipts (assigned to Account Group ‘Other receipts’)
- Miscellaneous payments (assigned to Account Group ‘Other payments’)
- VAT repayments (assigned to Account Group ‘Other Receipts’)
Additional Account Codes can be added using the Create Account Code menu.
Account Groups allow you to group accounts under more general headings so that when reports are produced appropriate sub-totals can be included. Using the above list of Account Codes as an example, for the payment accounts listed, these might be assigned to account groups as follows:
|Account Group||Account Code|
Account groups can be created via the Create Receipt (or Payment) Account Group screen. Initially they will be added at the end of the list, but the layout can be changed using the Edit Receipt (or Payment) Account layout screen.