Chart of Accounts Concepts

Summary accounts are special accounts that calculate totals within general ledger.

 

There are three types of summary accounts:

These accounts are used to show account balances when you inquire or request reports.

 

Book Summary Accounts have the digits 00 in both the major and minor positions. For example, the book summary account for the book, Assets, in the default chart of accounts is 01-100-00.

 

Major Summary Accounts have the digits 00 as the minor (the last two digits of the account number). For example, the major summary account for Cash in the default chart of accounts is 01-101-00.

 

Summary Accounts for all locations have the digits 00 as the location number (the first two digits of the account number). If you have more than one location, create a summary chart of accounts for all locations. Each account in a summary chart of accounts contains the grand totals of all general ledger locations. For example, the summary cash account 00-101-00 contains the total of this major cash account for all locations.

Note: To create a summary chart of accounts, copy your chart of accounts to location 00. For instructions, see Setting Up Multiple Locations in G/L. No postings can be made to summary accounts. These accounts are updated automatically.

See also:

Understanding the Chart of Accounts

Structure of Account Numbers

Default Chart of Accounts