Understanding Account Numbers

The General Ledger Account Number is the key field for the Chart of Accounts.  The format of the General Ledgers' Account Number is very flexible, allowing you to determine the length of the Account Number and how it is subdivided into one or more elements.

The Account Number can be up to 20 characters long (alphanumeric) with a maximum of five elements.  The length does not include any delimiters (dashes or dots) that appear between the elements.  Your Account Number length must accommodate G/L Account Numbers for transactions originating from any interfacing software modules.

For more information about...

• Account Number Elements, click More.

   

  Each element is a segment of the Account Number that holds special meaning for your facility.  For example, you can define an element that indicates the department number and another for the company division.  Municipalities might set up an element to identify the fund number.  The final element might be a number to uniquely identify the account.

  The elements are separated by your choice of delimiter - dash, dot, or no delimiter.  During data entry you can enter the whole Account Number, including the delimiters between elements.  Or, you can enter only the digits and let General Ledger insert the delimiters for you.

  You can use the elements for selecting and sorting the records for several G/L reports, including the Single Period Activity Report, YTD Activity Report, and Trial Balance Report.

  Element Examples:

  • One Element:  021003

  • Two Elements:  0210-03

  • Three Elements: 02-100-03, 02.10.03

   

• Account Number Setup, click More.

   

  During installation, NDS uses the Application Option Parameters utility to define the elements and characteristics of the Account Number according to your specifications.

  Notes:

  • You can not change the Account Number length or element formats after installation is complete.

  • You can specify up to five elements for the Account Number.

  • For each element, NDS must define the Starting Position, Ending Position, and Element Name.

  • You can specify the delimiter that you want to see between the elements.  You can choose a dash ( - ), dot (.), or none.
    Tips:

  • If you specify none, the Account Number will appear as a single string of numbers with no spaces between the elements.

  • Some people find dots a little easier to type than dashes.  Although the easiest method is to let the General Ledger programs enter the delimiters for you.

  • To speed up data entry, you can specify if you want the entered Account Number padded with zeros at the beginning of the account or the end of the account.
    
    Example:  If your facility usually has two zeros at the end of the final segment, you can specify Trailing Zeros.  When you enter 12345, the G/L programs automatically add 00.  The result might be 12345-00.  However, if you enter the full Account Number as 1234567, it knows to leave off the zeros and you see 12345-67.

   

• Account Examples, click More.

   

  When you create an Account Number during Account Master Maintenance, you must specify the Account Type, Debit/Credit Option, Control Account, and Clear To Account.  The following chart depicts examples of accounts with some typical settings for the fields.

   

  Account Examples
  Account Description	Account Type	Debit/Credit	Control Account?	Enter Clear To Account?
  Petty Cash	Asset	Debit	No	No
  Wages Payable	Liability	Credit	Yes	No
  Retained Earnings * (Capital)	Net Worth	Credit	No	No
  Sales	Income	Credit	No	Yes *
  Interest Income	Income	Credit	No	Yes *
  Telephone Expense	Expense	Debit	No	Yes *
  Accounts Receivable	Asset	Debit	Yes	No
  Accounts Payable	Liability	Credit	Yes	No
  Inventory	Asset	Debit	Yes	No
  Payroll Tax Withheld	Liability	Credit	Yes	No

   

  * Tips:

  • There usually is only one Retained Earnings account.  An exception might be a municipality that maintains a separate Retained Earnings account for each fund.

  • The Clear To Account Number is the number of the Retained Earnings account.  Usually enter the same Account Number in the Clear To Account field for income and expense accounts.

  Definitions:

  • Account Type:  Categorizes the account by its purpose.

  • Debit/Credit Option:  Specifies if an amount is normally posted to the account as a debit or a credit.
    Tip:  Always enter an amount as a positive value, and then specify if it is a debit or credit.

  • Control Account:  Specifies if an account is used by software modules that interface with General Ledger.  Typical Control Accounts include Accounts Receivable, Accounts Payable, Inventory, and Payroll Tax accounts.
    Tip:  If you attempt to perform manual entry to a Control Account, you will see a warning.

  • Clear To Account:  The Account Number for Retained Earnings to which income and expense accounts are cleared during the year-end Clear and Close Accounts process.