Chart of Accounts

The heart of any accounting system. An account is set up for each item that you want to keep track of. The chart of accounts is the group of all of the accounts within the accounting system. You can add to or modify the chart of accounts through this window.

To add a new account, press the New button on the toolbar or press the Ctrl+A keys. This will prepare the window to accept the new account information.

Account Number
The six-digit account number. The account number must consist of numeric characters. Any number entered with less than six digits will be padded to the right with zeros. Choose the account numbers carefully. The accounts should be set up so that the same types of accounts have account numbers that are in sequence. For example, you could set up your current asset accounts to range in number from 100000 to 149000, Fixed Asset accounts to range in number from 150000 to 190000, etc.

Description
The description of the account. The description can be up to 30 characters in length and can contain alphabetic characters or numerals. The account description is what makes the account number meaningful. For example, you could have an account numbered as 102000 and its description as "Checking." Without the description, it would be hard to remember the purpose of this account.

Account Type
The account type describes to the system the type of account being set up. Each account must be identified with an account type. The account type is used to help format the Balance Sheet and Income Statement reports.

Account Options

Bank Account
Check this box if this account is a bank account that will need to be reconciled. This will allow this account to be reconciled using the Reconcile Account function. Bank accounts are also used in the check register and check printing windows. Only bank accounts will available as selections in these windows. If this is marked you will be able to specify the next check number to be used when printing checks out of this account.

Department Required
Check this box if a department number will be required whenever this account is used in a transaction.

Well Required
Check this box if a well ID will be required whenever this account is used in a transaction.

1099 Rental Account
Check this box if this account is the account used when lease rentals, delay rentals or any kind of rent payment is made that needs to be reported on a 1099 form. The system will use the information posted to this account to prepare 1099s at end-of-year.

This Account is a Sub Account of:
Allows you to group accounts together under a more general account. If you want specific accounts but want to be able report them as one, you can use the sub account system. Choose the account that is the parent account of this one. You can set a sub account structure up to five levels deep. The wording below the field will tell you what level of an account you have set up. The reports that will total by sub account are the Trial Balance, Balance Sheet, and Income Statement.

Next Check Number
This will only be visible if the account is marked as a "Bank Account." This will be the number assigned to the next check printed out of this account.

Editing existing accounts
An existing account can be modified by using the same window. Instead of choosing the New button, just make the desired changes to the account displayed. Before editing a record, you need to choose the account record that you want to edit. This can be done by using the navigation buttons in the toolbar, First, Previous, Next and Last or by using the account pick list by clicking on the List button. Once you have changed the account record, click on Save to save the changes. If you do not want to save the changes, click on the Revert button.

Check Formats
If the option is marked in the General Ledger Preferences to "Specify Check File Names For Each Bank Account" then each bank account will have some additional fields displaying at the bottom of the Chart of Accounts window. These fields will only appear if that option is marked.

These fields allow you to specify a unique check format for each bank account. Generally this is used by those who print the checks with the MICR characters onto blank check stock. this allows different MICR Characters to print with each account.

The check formats specified here will be used in place of the check format specified in the check printing preferences.

Selecting a check format
Click on the browse ("...") button beside each field to browse to the desired check format. Ideally these will be stored within the data folder for this company instead of in the checks folder.

Editing a check format
Once the check format is specified you can edit it by clicking on the button that looks like a hand with a pencil writing on a paper in red ink. The formats will need to be edited here instead of edited under the utilities menu as would be the case if you were not specifying the check file name for each bank account.

A/P Check Format Name
Select the check format to use when paying vendors.

Rev Dist Check Format Name
Select the check format to use when paying working interest, override interest, and royalty interest owners from a run closing.

Payroll Check Format Name
Select the check format to use when paying employees for payroll.

Land Check Format Name
Select the check format to use when paying landowners for delay rental payments.