Account

An account is one labelled bucket in the general ledger, and every debit or credit must land in exactly one of them. BRAccount names each account with a number, a name and the company abbreviation, for example 2261 - VAT Payable - YFF, and gives it a root type, a report type and sometimes an account type such as Bank, Receivable or Tax that tells documents how to treat it. Ledger accounts take postings; group accounts only total their children. Picking the wrong account is the commonest mistake: rent posted to Repairs and Maintenance still balances but misstates the Profit and Loss. Each account has its own ledger view, which is the full history of rows posted to it.

Account balance = Opening balance + Debits posted - Credits posted (shown as a credit figure when credits are larger).

1. 01Go to Accounts Setup > Chart of Accounts and expand Liabilities > Current Liabilities > Duties and Taxes.
2. 02Click VAT Payable, then View Ledger to see every row posted to it with dates and vouchers.
3. 03To add an account, select the parent group and click Add Child.
4. 04Type the name, leave Is Group unticked, and set Account Type for Bank, Cash, Receivable, Payable or Tax ledgers.
5. 05Save. The new account appears in the account picker on every document.

Pick the account on every document line. The chart of accounts lists them all; this glossary explains each one below.

VAT Payable is one account. Its balance, Rs 4,160, is what Yatra For Fun owes the IRD this month.