Chart of Accounts

To use your own accounts for the General Ledger posting, setup each account number using a maximum of 10 characters.
This excludes the divisional code, which is in addition to the Account Number.

The chart of account can be maintained in the Chart of Account window in the "General Ledger" section on the Accounting tab of the Configure System Settings.
An operator must be assigned a Security Role that allows permission to the Accounting - Chart of Accounts in order to access this table.

When using divisions, the software automatically separates the entries into accounts and divisions.
i.e. Acct. 4000 Rental Revenue with three divisions automatically becomes, 4000-1, 4000-2, 4000-3.

This means there is NO need for separate G/L accounts for each division.
i.e. Acct. 4001 Rental Revenue Div. 1, 4002 Rental Revenue Div 2, 4003 Rental Revenue Div. 3, etc.
If your firm has several divisions contact Texada Support to discuss how best to proceed.

To load your Chart of Accounts, manually enter each account number, with the description, and account type, the prompts are:

SEQ#

The next available sequence number will appear.

ACCOUNT #

Use a maximum of 10 characters. (This excludes the division.)

DESCRIPTION

Enter up to a maximum of 30 characters.
When the Account description is changed, an audit record is captured that can be reviewed in the Chart of Accounts Description Change Log.

Integrated Accounting Setup:
When a third-party accounting application such as QuickBooks, MYOB or Xero is configured in Integrated Accounting, the SRM G/L Accounts much match up with the accounts in the integrated accounting package.

• QuickBooks uses the description and the account type to match the account.
  A window is provided to access the QuickBooks Account# Selection and selecting an account in this window will change the account description field in SRM to match and link the account to QB.
  The Sync QuickBooks/Xero/MYOB Chart Of Accounts utility can then be used to sync the accounts.

• Other third-party accounting applications such as Xero and MYOB - Essentials match the accounts by just passing all the existing SRM G/L Accounts to auto-add them in the integrated accounting package, through the Sync QuickBooks/Xero/MYOB Chart Of Accounts utility.

• The MYOB - AccountRight application only matches G/L Accounts prefaced with a #-XXXX with the Sync QuickBooks/Xero/MYOB Chart Of Accounts.
  i.e. 1-1000, 2-1101, 3-2000

TYPE

This field has four possible types:

A = Asset
L = Liability
R = Revenue
X = Expense

Note: Once an account has been designated a Type and saved, the Type cannot be changed.

COMPRESS

When viewing or printing the General Ledger account activity, some accounts have large volumes of activity that could be compressed. Other accounts should never be compressed.

Check this box if the details of the account are to be compressed.
Uncheck this box if the account details should never be compressed.

Note: The setting of the Compress Details flag is not critical during start-up. This setting can be reviewed and changed at any time prior to running the compressions.

The compression of the General Ledger is done using Compress General Ledger.
The compression moves the current G/L detail from the selected accounts to a General Ledger History File, so that compressed information can still be accessed and printed, if necessary.

The compressed records are accessed using the G/L History options. After the compression, the current General Ledger is much smaller, making reports and inquiries faster.

Refer to Compress General Ledger for more details on compression and history.

ALT ACCOUNT NUMBER / INTEGRATED ACCOUNT ID

Some firms require an account number greater than 10 characters to work in conjunction with other book keeping systems. An Alternate Account Number can be entered using up to 16 alpha/numeric characters.

• In the G/L account lookup window throughout Texada SRM, the keyword search can be used to find accounts by this Alternate Account Number.
• There is an option in Chart Of Accounts Listing to print only the Alternate Accounts.
• The Trial Balance can also be printed using the Alternate Accounts, but primary accounts will be printed if no Alternate Account is recorded.

Integrated Accounting Setup: -UNIQUE ACCOUNT ID
When integration with a third-party accounting application is configured in Integrated Accounting, and the SRM account description is updated to match the QB description by the QuickBooks Account# Selection, this Alternate Description field heading is renamed to “QB Account ID”.
This description field is populated with the 'Internal ID' assigned by QuickBooks.
If this field is blank, a window is provided to access the QuickBook Account# Selection and select an account to link the QuickBooks account to the SRM GL account and to change the SRM Description field to match the QB description.

The SRM/QB Accounts can be validated by clicking the VALIDATE button at the bottom of the screen.

TYPE

This field can be used to assign an optional G/L Classification Type to each account number.
This is information only, and the code is reflected on the Chart of Accounts Listing.

PO OK

This field can be used to flag any account numbers that can be entered directly on a Purchase Order to create an order for a non-inventory purchase.
The ability to order an item on a Purchase Order that does not have a product number or a Group is controlled by the Allow Non-Inventory Items On PO Details flag in the Company Security Parameters.

Check this box if this is an Asset or Expense account that can be included for a purchase on a P.O. when this non-inventory order feature is activated.
Uncheck this box if this account should never be used for a purchase on a P.O.

TAX

This field is only enabled with the 'Standard Tax' method when the "Calculate Tax On" capture feature in the Company Taxing Parameters is active in preparation for generating the Tax Activity Report.

This Tax field provides the option to select a default Tax Code from the drop-down box to be associated with this G/L Account when the account is assigned to a transaction in the G/L Journals or in G/L Checks.
To change the default Tax Code on the G/L transaction the operator must have Security Role to 'Change Tax Codes' set in the "Document Field Access" window of the Role Permissions.

Note: If the GL Account is a Tax GL Account and is assigned to a Tax Code, then this Tax field is not relevant and has been disabled for the record.

System Accounts:

Two mandatory System Accounts must be included in the Chart of Accounts:

• The PLNI account is used to store the Current Year Profit (Loss) and is displayed on the Balance Sheet as the CURRENT YEAR NET INCOME amount. Do NOT post directly to this account and do NOT replace it with your own account number.
  Do NOT delete this Liability account.

• The PLRE account is used only after you have completed your Fiscal Year End. Once you have determined your final Net Income for the Year, this account is used to close out the Revenue and Expense Accounts to Retained Earnings.
  This should be the ONLY time which you post to this account.
  Do NOT delete this Expense account.

  Note: Generally these two accounts display at the bottom of the Balance Sheet or Income Statement, however if your firm uses alpha characters when assigning GL Account numbers and the statement layouts are auto-generated in Generate Statement Layouts, the PLNI & PLRE accounts may not be positioned at the end as the utility will sort the accounts alphabetically within type.
  Once generated, the layouts can be manually modified to re-order the accounts appropriately.

Creating a Chart of Accounts at Startup:

Check with your Accountant first to make sure a numbering system is NOT already in place for your company.
If not, Texada Support can assist you with one of the options below:

1. Make up your own numbering system, possibly using the American Rental Association (ARA) Basic Chart Of Accounts as a guide.
   A number is required for each of the different kinds of accounts listed, plus additional accounts to suit your own company.

2. Use the "Pre-Loaded Chart of Accounts" only based on the American Rental Association (ARA) model as listed below.
   After copying the standard Canadian or U.S. Chart of Accounts, it can then be customized to suit your needs.

3. Use the "Pre-Loaded System Set-up", which is modeled on the American Rental Association (ARA) suggested guide for business, and includes ARA Basic Chart of Accounts, ARA Product Classes, and all other necessary default parameters.

American Rental Association (ARA) basic Chart Of Accounts:

       ACCT#               DESCRIPTION                      TYPE
       -----               -----------                      ----
       1000                BANK                              A
       1100                CASH CLEARING                     A
       1130                CASH ON HAND                      A
       1135                PETTY CASH                        A
       1200                ACCOUNTS RECEIVABLE               A
       1230                ALLOWANCE FOR DOUBTFUL ACCTS      A
       1240                MERCHANDISE FOR RE-SALE           A
       1250                PARTY MERCHANDISE FOR RE-SALE     A
       1270                G.S.T. PAID ON PURCHASES          A
       1290                PREPAID EXPENSES                  A
       1300                RENTAL EQUIPMENT                  A
       1301                ACCUM. DEPRECIATION -RENTAL EQUIP A
       1400                FURNITURE & FIXTURES              A
       1401                ACCUM. DEPN - FURNITURE & FIX     A
       1430                VEHICLES                          A
       1431                ACCUM. DEPRECIATION - VEHICLES    A
       1440                LAND                              A
       1450                BUILDING                          A
       1451                ACCUM. DEPRECIATION - BUILDING    A
       2000                ACCOUNTS PAYABLE                  L
       2050                CUSTOMER DEPOSITS                 L
       2060                ACCRUED ACCOUNTS PAYABLE          L
       2200                SALES TAX 1                       L
       2210                SALES TAX 2                       L
       2220                EMPLOYEE DEDUCTIONS PAYABLE       L
       2290                CORPORATE INCOME TAXES PAYABLE    L
       2300                NOTES PAYABLE - BANK              L
       2999                SUSPENSE                          L
       3000                CAPITAL STOCK                     L
       3200                RETAINED EARNINGS                 L
       4000                RENTAL REVENUE                    R
       4030                PARTY RENTALS                     R
       4090                SALE OF RENTAL EQUIP.             R
       4100                MERCHANDISE SALES                 R
       4110                PARTY MERCHANDISE SALES           R
       4150                CLEANING INCOME                   R
       4160                DAMAGE WAIVER INCOME              R
       4170                DELIVERY INCOME                   R
       4180                FUEL INCOME                       R
       4190                LABOR & REPAIRS INCOME            R
       4210                PURCHASE DISCOUNTS                R
       4200                FINANCE CHARGES INCOME            R
       4500                COST OF RENTAL EQUIPMENT SOLD     X
       4510                COST OF MERCHANDISE SOLD          X
       4520                COST OF PARTY MERCHANDISE SOLD    X
       4800                RE-RENTAL EXPENSE                 X
       4810                REPAIRS & MAINTENANCE TO EQUIP    X
       4820                FREIGHT EXPENSE                   X
       4830                SALES DISCOUNTS & ALLOWANCES      X
       5000                WAGES & SALARIES                  X
       5030                EMPLOYEE BENEFITS                 X
       6000                ADVERTISING & PROMOTIONS          X
       6020                BAD DEBTS                         X
       6040                BANK CHARGES & INTEREST           X
       6080                CASH OVER/SHORT                   X
       6090                CREDIT CARD DISCOUNTS EXPENSE     X
       6100                DEPRECIATION EXPENSE              X
       PLNI                PROFIT/LOSS NET INCOME            L
       PLRE                PROFIT/LOSS RETAINED EARNINGS     X

• Delete G/L Account:
  The DELETE button is only active when the role assigned to the operator in Operators has permission to delete G/L accounts.
  The role permission is setup in Security Roles on the Security tab of Configure System Settings.

  To delete a General Ledger account, click the DELETE button and select the account to be deleted as outlined in Delete A G/L Account.
  This program ensures that the account is NOT used somewhere in the software system before it can be deleted.

  If the account is identified as active, it needs to be replaced with another account number in the areas and tables where it is shown as in use.
  

• Print the Account List:
  Click the REPORT button to generate a list of the accounts as outlined in Chart of Accounts Listing.

• Validate QB Accounts:
  The VALIDATE button is only present when QuickBooks, MYOB or Xero integration is enabled in Integrated Accounting.
  Click this button to launch the Chart Of Account Validation utility (QB_ACCT4) to confirm that the chart of accounts in SRM matches the Chart of Accounts in QuickBooks, MYOB or Xero.
  If there is a discrepancy between the Chart of Accounts in SRM and the chart of accounts in the third-party accounting application the table lists the accounts in SRM that do not have corresponding account or where the names have changes or are duplicates.

  After correcting the accounts in SRM run Sync QuickBooks/Xero/MYOB Chart Of Accounts to re-sync the accounts in the Chart of Accounts in SRM to update the accounts in QB/Xero/MYOB Chart of Accounts where SRM is the Master list.
  The option is provided to auto-add missing accounts to the QB/Xero/MYOB Chart of Accounts using the SRM chart of accounts.