Types of accounts in the chart of accounts

In the chart of accounts under General Ledger/Chart of accounts , different types of accounts can be selected when you create new accounts by using the Add Ledger accounts button. The account types determine what the account can be used for, for example, whether or not posting can be made to the account, but the account types can also be used for reporting. There are also rules for which VAT types can be used on which account types. Some account types can be posted to, others not. 'Total' and 'Calculation expression' are used for counting and calculation expressions across the chart of accounts. 'Header' is used as a header for a group of accounts.  

What are each account type used for?

The chart of accounts lists the following types of accounts:

If you are in doubt about the use of account types, you can find inspiration by looking at the chart of accounts in the demonstration company under Company/View a demonstration company.

Account type	Account description
Income Statement:	You CAN post to accounts with the account types below:
Profit and loss, Revenue and Other Income	These account types can be applied to accounts in income statemen on which you want to post revenue, such as your sales/revenue accounts. However, the Profit and loss account type can also be applied to cost accounts. Subdividing the part of the chart of accounts which is the income statement account into income, costs and the respective subtypes is entirely optional. Or if you just want to use the type 'Profit and loss' for all accounts. Note! Receivable VAT (purchase VAT) cannot be posted to accounts with a Revenue account type. These accounts are reset when opening transactions are created by transferring the balances on the accounts to the system account 'Account for the transfer of year-end result" in Equity.
Profit and loss, Costs, Consumption of goods, Expenses, Depreciation	These account types can be applied to income statement accounts on which you want to post costs, such as office supplies, cleaning, consumption of goods, and so on. However, the Profit and loss account type can also be applied to revenue accounts. Subdividing the part of the chart of accounts which is the income statement account into income, costs and the respective subtypes is entirely optional. Or if you just want to use the type 'Profit and loss' for all accounts. Payable VAT cannot be posted to accounts with type Expenses.
Status/Balance:	You CAN post to accounts with the account types listed below:
Balance Sheet, Active, Fixed asset, Current asset, Liquid assets	These account types can be applied to balance sheet accounts on which you want to post movements on your assets. However, the balance sheet account type can also be applied to accounts for liabilities. It is completely optional to subdivide the part of the chart of accounts that is the balance into assets, liabilities and the respective subtypes. Or if you just want to use the type 'Balance sheet' for all accounts.
Lager	You must use this account type for your inventory accounts. Services and other items from inventory cannot be posted without inventory impact on accounts with the type 'Lager '
Debtors	You must apply this account type to your customer omnibus accounts. A consolidation account for customer groups or for vendor groups must always be set up with account type 'Customers' or 'Vendors'. Read more about aggregate accounts in customer groups here and vendor groups here.
Bank	You must apply this account type to your bank accounts. (included in balance sheet if created under assets or liabilities) Note! Bank reconciliations can only be made on accounts with type Bank Version-92The Bank type cannot be changed to another type if the account is set up during bank reconciliation.
Liabilities, Long-term debt, Short-term debt, Provisions	These account types should be used for balance sheet accounts where you want to post movements on your liabilities, e.g. your accounts for a-taxes payable, payables, etc.
Shareholders' equity	This account type should be used for equity accounts in the balance sheet.
Ordinary share capital	This account type should be used for share capital accounts in equity in the balance sheet.
Vendors	You must apply this account type to your vendor omnibus accounts. A consolidation account for customer groups or for vendor groups must always be set up with account type 'Customers' or 'Vendors'. Read more about aggregate accounts in customer groups here and vendor groups here.
Header and summary accounts	You can NOT post to accounts with the account types below:
Header	Used on accounts to serve as a header for a group of accounts. It provides a neat and clear chart of accounts as well as neat balances. In the chart of accounts and on printouts, they are automatically formatted in bold.
Total	Used on accounts that will act as a total account for a group of accounts. In the Totalfield of the account, specify which range of accounts to count in this summary account. A header account is not required to initiate the range. You can easily count together from a Posting account. Example 1: Enter e.g. 1001..1098 if the account is to add up the sum of amounts in accounts 1001 through 1098. This means that .. (two periods) between two account numbers means from and to. Example 2: 1010..1099;2010..2099 is entered in the Sum field if you want a sum of all amounts in accounts in both the two specified intervals. That is, ; (semicolon) means "and". Example 3: 1010;2010;3010 is entered in the Sum field if you want a sum of the amounts in exactly these three accounts.
Calculation expressions	Many people refer to accounts with the Calculation Expressions account type as Turnstile accounts. These accounts are used in accounts that need to show a calculated amount based on amounts in other accounts.

Calculation expressions use the "counting works" in conjunction with common calculation expressions +(plus), -(minus), *(times), /(divide), etc.

On an account in the chart of accounts, the Save in field can specify a value, many will probably recognize it as a counting value. The balance in the account can be stored in a counting system from 1 upwards. Balances on multiple accounts can be stored in the same counting system and thus summed across the chart of accounts.

Example 1 - Calculating DG Note that in the Save in field, 1 is selected in Total revenue and 3 in Contribution margin. In the Contribution margin account, the amount in these accounts is captured by typing Sum(1) and Sum(3), as seen in the Calculation expression field below: TIP! If you want to view the calculation with 2 decimal places, you can change the formula to the following: (1000000*sum(3)/sum(1))/100) and uncheck the Percentage field.