General Ledger (GL) Account Types are classifications used in accounting to categorize different types of accounts within the general ledger. These classifications help in organizing and reporting financial data accurately. GL Account Types control the categorization and reporting of financial data, ensuring that each type of account is accurately represented in financial statements. They help in maintaining a structured and organized ledger, facilitating better financial analysis and decision-making
These are the different account types availble in the system:
Balance Sheet
Account that is posted from business transactions. The balance of a balance sheet account is carried forward at the fiscal year-end.
Cash Account (Bank Reconciliation Account)
A G/L account that can be assigned to more than one house bank account. For each house bank account, a G/L account is required, to which payment transactions are posted. With the cash account the number of such G/L accounts can be significantly reduced.
Non-operating Expense or Income
Income statement account that records expenses or gains from activities that are not part of the main purpose of the company, such as gains realized from financial investments by a manufacturing company.
Primary Costs or Revenue
Income statement account that functions as a cost element for primary costs or revenue. Primary costs reflect operating expenses such as payroll, selling expenses, or administration costs.
Secondary Costs
Income statement account that functions as a cost element for secondary costs. Secondary costs result from value flows within the organization, such as internal activity cost allocations, overhead allocations, and settlement transactions.