Chart of Accounts

Add a New Account - flat ledger

In the Chart of Accounts, you can add a new Account Code. In this topic we will look at adding a non-segmented (or flat) account.

  • Flat Chart of Accounts: This is a simpler structure where accounts are listed sequentially without further subdivision. It's typically used by smaller organizations with less complex accounting needs. In a flat COA, each account is usually represented by a unique number or code, and there are no additional layers or segments within the account structure.

Chart of Accounts Listing Screen

Ribbon Select Chart of Accounts - Chart of Accounts

  • The Chart of Accounts Listing screen will be displayed.

  • Account Number: Is a unique multi-digit numeric code assigned to each financial account within a company's general ledger. This numbering system is designed to categorize and identify accounts easily, facilitating the organization, recording, and reporting of financial transactions.
  • Account Description: A brief narrative that explains the purpose or nature of a specific account within the general ledger. It provides clarity on what types of transactions should be recorded in that account, ensuring accurate and consistent financial reporting. This description helps users of the financial statements, like accountants and auditors, to quickly understand the financial activities represented by each account.

Add New Account

  • Click on the Add New Account No button.

  • The Add New Account maintain screen will open.

  • The Account No field is masked so that the correct formatting is used when creating a new account. This is set up in Nucleus Configurator - Company Config - AccountCodeMask. This flag utilizes a combination of X and A characters that denotes Numerical and Alphanumerical characters, respectively.
  • In the example below, you will note that the tool tip text indicates the mask is XXXX (i.e. four numerical characters).

  • Account Name: Briefly describe the account in a way that is concise and meaningful, so that it is easy to understand the financial activities represented.
  • Account Type: This refers to the broad classification within the Chart of Accounts that organizes financial transactions. Account types are the main categories under which accounts are grouped, such as assets, liabilities, equity, revenues, and expenses. Each account type is designed to reflect a specific aspect of the business's financial situation and is used to structure the general ledger for systematic recording and reporting.

  • Apply Segments: This flag is to specify whether segments should be created for this account. By default, this option is turned off. It will automatically activate only if your Account Type is set to Apply Segments.
  • Click on the Generate button.

  • The Account to be generated will display in the Account List datagrid, with the ability to change the Account Description and Suspense Account option.
  • The Marked column is only used when setting up a Segmented Account.

  • Click on the Ok button to add the Account to the Chart of Accounts listing screen.

Save

  • Click on the Save button to ensure all your changes are stored and updated in the system.

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