How do I add a new GL account? Before adding a new account, it is always a good rule of thumb to begin by reviewing your current list of accounts so as to avoid creating a duplicate or extremely similar account to one that already exists. Let’s review a quick list of our existing accounts by clicking on the GL Accounts list in the General Ledger section of the Navigation Pane.
Here I see a list of all my accounts, sorted by number.
When you are ready to create a new account, click on the words ‘New Account’ in the General Ledger section of the Ribbon.
The New GL Account window appears with the title of ‘GL Account’.
After adding an Account Name, select a parent account if you wish to have this account grouped and subtotaled under another account on the financial statements. The parent account is optional and can be left blank. You can either start typing the name of the Parent Account or click on the dropdown menu for more options.
Next, select the GL Type which will dictate where the account will display on the financial statements. If you have selected a Parent Account, the GL Type will be auto-populated with the GL Type of the parent Account. As you can see, since the GL Type is ‘Cash’ a new check box has appeared titled ‘Is Bank Account’. We will review this field a little later in the training.
Next, assign an account number. The type, number, and name determine the order and grouping of accounts on financial reports. The system groups by type first, then by parent account, then by name alphabetically unless there is an account number. If there is an account number, it will disregard the account name and sort the accounts within the parent accounts in ascending value by number. It’s a good rule of thumb to use a simple numbering system so that you have an easy way of rearranging the order of your accounts on reports.
The next field is called ‘Disable Entry (subtotal only)’. Marking this checkbox tells the system to prevent any entries to this account. This is usually flagged for parent accounts that are only setup to group other accounts. For this account we will leave it blank. Next is the ‘Available to Managers’ field. Marking this field will enable store managers to see this account in their drop down when entering AP Invoices and assigning Paid-outs on Daily Sales Summary Transactions. This is usually only marked for cost of goods sold accounts or other controllable expenses that a store manager would authorize. Since this is a ‘Cash Account’ and do not want managers using this account we will leave this field blank as well. The description field is used for informational purposes only (meaning they it doesn’t appear on any reports). You might add comments that might be helpful for remembering how an account is used and for what type of expenses.
In the top menu of this form you will find the ‘Report Settings’ tab. Here you will be able to determine the ‘Cash Flow Category’ ‘Percent’ calculation. Selecting the ‘Show Running Total’ field will create a row on the financials after this account that begins at the top of the report and runs through this account. You can also name what you want to call this running total row in the Running Total Label field. Certain financial reports will display a ratio next to each account based on a percent of another account or group of accounts. For this example will leave the ‘Show Running Total’ blank. The ‘Cash Flow Category’ will allow the user to select the appropriate category for ‘Cash Flow’ reporting. Many accounts will not have a Cash Flow Category, if this is the case, select ‘None’.
The last part of this training session will cover additional fields if the account you are creating was checked as ‘Is Bank Account’. The Banking Info section will appear as you select a bank associated Parent Account. You will assign specific additional details about this account. Let’s check the ‘Is Bank Account’ box and see what new fields are added.
As you can see. Once we checked the ‘Is Bank Account’ box, ten new fields appear in the ‘Banking Info’ section
Location – It is assumed that only one Legal Entity controls each cash account so it’s important to select a location within the legal entity for this Bank Account. This field will help drive the intercompany accounts when money is transferred to cash accounts controlled by other Legal Entities.
Bank Name (on check) – Name of the Bank that will appear on the printed check.
Bank – This field will identify the Banking institution and the type of bank account. Click on the look-up box and select the appropriate Bank. If you don’t see your bank, click on add and the system will walk you through the steps to add a new Bank
Second Signature – Click this box if a second signature is desired on checks from this checkbook. When checked this will show a another field called Second Signature Threshold where you set what dollar value for the check will require the 2nd signature. For example, if checks for $5,000 and above require a 2nd signature then check this box and put 5,000 in the threshold field. If 2nd signature is required on all checks then put $0 in the threshold field. This will make a 2nd signature line print on the check just above the regular signature line. You can still have a signature image print for the 1 signature if you desire, but the 2nd signature must be manually signed
Routing Number – Enter the Routing Number of the Bank Account
Bank Account Number – Enter the Account Number of the Bank Account
Bank User Name – User name for online banking – This will be used in ’Bank Activity’ if you use the automatic upload option
Next Check Number – Enter the next available check number. This will be used when printing physical checks from this account and will display in the MICR line on the check. It is important that these be exactly the same as give to you by your bank.
Last Reconciled Date – Date the account has been reconciled through.
Last reconciled Balance – Balance of the account as of the last reconciliation.
Last Activity End – The date of the last activity in this account.
Is Deposit Only – Check this box if this account is for deposits only and you don’t want it as an option on the check run and manual payment screens
That covers the basics of ‘Adding A New GL Account, Bank Account or Checkbook’. Thank you for attending this training session. This article is one of many training sessions available to you on-demand. We invite you to continue your training so that you can get the most out of Restaurant365 to help your restaurant reach it’s full potential.