Setting up Account Types

The first step in setting up your new REALedger system is Setting up Account Types

Under General Ledger menu > select Setup > Account Types

The system comes with the following predefined account types:

ASSETS
LIABILITIES
REVENUE
COST OF SALES
EXPENSE
OTHER
PROVISION FOR TAXES

Select Add to add new Account types needed

The General Ledger account type is the parent of the account subtype: these values determine the placement and behavior of financial information on reports.

Note that within Account Types, Debit accounts (assets, COS and expenses) are identified as 1 because they increase the balance in the account when entering a debit while credit accounts (liabilities, equity and revenue) are defined as -1 because they increase the balance in the account when entering a credit. Credit account balances will be multiplied by -1 and reported as a positive number.

Setting up Account Subtypes

select Setup > Account Subtypes

General Ledger account numbers must have an account sub-type assigned to them as well. These values are used to summarize and total the underlying transactions. REALedger comes with the following predefined sub-types:

Current Assets
Property And Equipment
Other Assets
Current Liabilities
Long-Term Liabilities
Stockholder Equity
Commission Revenue
Commission Net
Company Dollar
Company Dollar after Desk Fee
After Other Income
Cost of Sales
Payment to Agents
Payment to Employees
Promotional Expense
Payroll/Taxes
Multiple Expenses
Facilities Expense
Telephone
Office Expense
Printing Expense
Professional Expense
Construction Expense
Other Expense