Accounts are used to classify your Assets, Liabilities, Expenses, and Revenue in the General Ledger.
Sample Chart of Accounts files are below. If the Standard Chart of Accounts is desired, the two files below should be imported in the following order:
Navigate to Admin > Setup > Accounting > Accounts > +Account link > Organizations tab.
Account setup is related to the setup of other key items:
- Posting Groups: Accounts must be set up in Admin > Setup > Accounting > Accounts so that transactions can then be directed to them via the Posting Groups setup. See Posting Groups for details of the various Account Categories for which accounts are required.
- Bank Accounts: Separate accounts must be defined for each bank account. These accounts should be set up in Admin > Setup > Accounting > Bank Accounts. Once the bank account entry is created, select Accounts from the left menu and click the edit pencil icon for the desired account. On the Organizations tab, click the radio button for Selected (Account can only be used with selected Organizations).
- Cost Pool Groups: The Cost Elements and Account structure should be defined in the General Ledger to capture all information necessary to calculate indirect rates for government contracting purposes. The Cost Pools Parent Account Hierarchy can be used to simplify the setup of the cost pools by aggregating accounts for the purpose of cost pool calculations. This means that you only have to specify a parent account in the Cost Pool Groups and all child accounts automatically roll up (see Cost Structures below for details).
- Expense Types: Expense Types must be associated with an account if Financials are installed. There can be a 1-many relationship between an account and expense types if the user does not want to track expenses at the same level of granularity in the General Ledger as they are specified in the expense report (e.g., the General Ledger account may be "Meals" whereas the Expense Types could be "Breakfast," "Lunch," and "Dinner").
- Requiring a Project: Any account that the client does not want to be charged without also having a project associated with it should have the Account profile option Transactions Require Project selected. Generally, this would include revenue and direct Expense Type accounts. Some organizations, however, choose to mark all expense accounts with this setting such that every charge can be related back to a project, and reporting can therefore be done through the project accounting reports.
- Financial Statement Format: The financial statements formats are predicated on the Financials Parent Account Hierarchy for the accounts.
Account Hierarchies are independent of Account Codes in Unanet. While Account Codes can help the user identify various types of accounts, the Account Hierarchy (which determines how the accounts are presented on financial reports) is determined via the Financials Parent on each Account profile. This Hierarchy is then displayed in Reports > Reference > Account Tree Views.
Navigate to Admin > Setup > Accounting > Accounts > +Account link > Profile tab.
In order to have account information display for the Statement of Cash Flows - Detail report, the account setup must be modified for those accounts that allow transaction entry.
Navigate to Admn > Setup > Accounts > List tab and edit the appropriate accounts using the edit pencil icon.
On the Profile tab of the account, in the CASH FLOW section:
- Cash Flow Category is used to designate the report section where this account will be displayed. Select the desired value from the dropdown menu.
- Cash category in the dropdown menu can be used to mark all cash accounts to help identify those accounts in order to derive the initial cash balance and validate the cash changes.
- Cash Flow Rollup Account is used to designate a label that will appear on the report in order to group accounts, rather than showing individual accounts.
- A Standard Chart of Accounts with roll up examples can be found in the Unanet demo site.
- Unanet allows the user to enter transactions to accounts that are used as parent accounts for grouping purposes in the Account Hierarchies. A best practice, however, would be to limit transaction entry to the detail level accounts and not allow transactions at the parent account level.
- Balance sheet accounts (Asset, Liability) should be set up on the Organizations tab with the radio button for Selected (Account can only be used with selected Organizations) selected. (It is very rare that a user would want to maintain departmental balance sheets.)
- Account format should be considered. Certain formats will not be treated properly in exports to Excel during setup without careful work.
For example, an Account that is 4000.100 will come into Excel, even from a
csvfile, as 4000.1 unless you are careful to change formatting to
Using a dash (4000-100) will solve that issue. Not using any numbers with 0's at the end will also work (4000.001) or using numbers with two periods will work (40.10.10).
- The sign of the amounts for the roll up levels is based on the type of roll up account. For example, the Net Income roll up account should have an account type of "Revenue" so that an overall credit balance will display as a positive value.
For most organizations a Best Practice for account setup for balance sheet accounts would be to limit them to the one corporate organization to which they should be posted. The setup required would be to add an organization underneath the top organization that is meant for all balance sheet postings. For more information, visit the Default GL Posting Organization page.