CenterPoint^® Fund Accounting - Understanding & Using Accounts

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Accounts are used to define the structure of your financial system and track and categorize specific types of transactions. Accounts are used in transactions to describe the movement of resources within your company/fund and to record and summarize the increases and decreases of their balances. You can add or change accounts at any time. Your list of accounts should describe what your company/fund does, your resources (cash, machinery, etc.) that your company/fund owns, and the loans or debts your company/fund owes to other companies/funds and individuals (creditors). Transactions post activity to accounts. Reports read the activity recorded to the accounts and/or balances of accounts.

In this topic, we'll provide steps for:

Create an Account
Using Sub Accounts
Creating Accounts that Automatically Calculate Amounts in Transaction Entry

Maintenance Options for Existing Accounts:

Edit/Change Existing Accounts

Delete Accounts

Change the Status (hide) Existing Accounts

Combine Existing Accounts

Create an Account:

On the Setup menu, point to Accounts, and then click Accounts.
Click New.

In the Abbreviation box, enter up to ten characters of optional information that you can easily identify the account by. The abbreviation can be displayed on reports as well as any account number. For example, CK for State Bank Checking or MW for Midwest Savings. Then, right-click and select Allow Duplicates(Allow Duplicates: use this option to reuse and not require the value in the Abbreviation box.) , Warn if Duplicate(Warn If Duplicate: use this option to reuse and not require the value in the Abbreviation box. A confirmation message will display. To continue using the duplicate value, click Yes.) , or No Duplicates Allowed(Warn If Duplicate: use this option to reuse and not require the value in the Abbreviation box. A confirmation message will display. To continue using the duplicate value, click Yes.) . By using an abbreviation, you can quickly locate an account during Transaction Entry.
If you will be identifying your accounts with numbers, in the Number box, enter a number that the account can be referenced by. Account Numbers are optional.

Note: The length and format (mask) of the account number are set in File > Preferences > Accounts > Account Settings. Then, right-click and select Allow Duplicates(Allow Duplicates: use this option to reuse and not require the value in the Number box.) , Warn if Duplicate(Warn If Duplicate: use this option to reuse and not require the value in the Number box. A confirmation message will display. To continue using the duplicate value, click Yes.) , or No Duplicates Allowed(No Duplicates Allowed: use this option to require a unique value in the Number box. If the value entered is not unique, a message will display. If duplicates exist when you attempt to select this option, the duplicate values must be changed and then you can select this option.) . The account number can be used with or without the abbreviation to quickly locate an account during Transaction Entry.

In the Name box, enter up to 30 characters of required information that describes the account.
In the Type box, click and select an account type. Account Types are the highest level in the account hierarchy and are predefined. Account Types are defined as: Assets (Items of value that are owned – resources that a company/fund uses to operate the company/fund.), Liabilities (debts or obligations owed to another company/fund or individual.) , Equities (the net worth of your company/fund. Equities come from investments in your company/fund by the owners or stockholders, plus accumulated net profits/loss of your company/fund that have not been paid to the owners.), Revenues (generate income and increase retained earnings for your company/fund.), Cost of Goods Sold (a specific expense that represents direct cost of producing revenue. Cost of goods decrease retained earnings for your company/fund.), Expenses (are costs of operating your company/fund. Typical expenses are fuel, labor, benefits, utilities, etc. Expenses decrease retained earnings for your company/fund.), Other Revenues (income generated in your company/fund not directly related to sales, for example: finance charges or gain on a sale of a fixed asset.) , and Other Expenses (an example of an other expense is Income Tax.). Account types determine the order your accounts print on financial statements. When an existing account is edited, the Account type cannot be changed.
In the Category box, select an appropriate account category. Account categories are the second highest level in the account hierarchy and are predefined. They define many of the characteristics of an account - the template used, the location on reports, balance details, etc. Many of the CenterPoint reports are sorted by account category so that similar accounts report and are subtotaled together, for example accounts will print together for account categories Accounts Receivable, Land, Other Current Assets, Interest Income, Other Current Liabilities, etc. Account categories also allow default templates (Templates: a pattern that identifies the accounts posted in the activity and details assigned to the account.) to be assigned to make Transaction Entry quick and easy.) , or type an account category. If an account type is selected first, the categories available are only those categories created for that account type. If a category is selected first, the account type will automatically fill in.
If data posted to this account is to be summarized at a higher level on reports, the account that it is to be summarized at should be identified in the Subaccount box. Subaccounts of an another account must be in the same account category. A main account can have multiple subaccounts. Subaccounts can also have subaccounts, but you can only ever have three levels of accounts. For example, Fuel Expense is the main account, Gasoline is a subaccount of Fuel Expense and Regular, Dyed, and Diesel are subaccounts of the Gasoline subaccount. You can view the account hierarchy under Account Hierarchy on the right side of your screen. In the Subaccount of box, click and select a subaccount, or type a subaccount. If a subaccount is added to a parent account and the parent account has a balance, a confirmation message will display that warns you that the balance of the existing account will be moved to the subaccount and asks if you want to continue.
In the Quantity 1 and Quantity 2 boxes, if the account that you are creating can be identified with a quantity value, click and select an optional unit of measurement, or type a unit of measurement. For example, you might select gallons for a Fuel Expense account.
When an account is a subaccount of another account, view the hierarchy under Account Hierarchy. You can choose to view the hierarchy by account name, account number, or abbreviation.
To add notes to this account, click Additional Notes, enter the notes, and then click OK.

Note: To add a time stamp to a note added or edited on the Additional Notes screen, click Stamp. If you are adding/editing a stamp in a database without security, the stamp will display "Edited on (current date and time)". If you are adding/editing a stamp in a database with security, the stamp will display "Edited by (username) on (current date and time)".

To activate/deactivate an account for a specific company/fund, from the List tab, right-click on the account, select/unselect the check box next to the company/fund you want to activate/deactivate the account in or to activate the account in all companies/funds click Activate All and to deactivate the account in all companies/funds, click Deactivate All. When you activate/deactivate accounts from Setup > Accounts > Accounts, the account will also change on Setup > Companies/Funds > Account List tab accordingly.
Click the Detail tab. The information on the Detail tab changes based on the properties of the account category assigned to the account. Complete all required fields (for example, Offset Account).

Select the type of account you are adding for more information about the Detail tab.

Bank Account	Line of Credit
Credit Card/Taxes Payable Liability	Long Term Liability
Current Liability	Payroll Liability
Depreciable Asset	Purchased Inventory
Depreciable Breeding Livestock	Raised Inventory
Finished Goods Inventory	Work In Process Inventory

Note: The fields included on the Details tab differ depending on what account category is assigned to an account.

If you want to assign transaction amounts to this account to several departments, locations, tracking number 1, tracking number 2, or projects based on a percentage (for example, a bill is entered for utility expenses and 25% of it is distributed to Profit Center/Department 1, 45% is distributed to Profit Center/Department 2, and 30% is distributed to Profit Center/Department 3.), click the Distributions tab (the Distributions tab will only be active for accounts with an account type of expense, other expense, revenue, other revenue, or assets with an account category of work in process.)

Note: Accounts that are not postable (they have sub-accounts assigned to them) cannot have a distribution method assigned to them. For more information about distributions, see the Distribute General Revenue and Expenses topic.
Templates describe the details about a transaction that will be created when an account is chosen in transaction entry. For more information about the Templates tab, see the Assign Data Entry Templates to an Account topic.

If you want to view balances for an account or enter beginning balances for an account, click the Balances tab. The period will default to the current period. Select a period you want to view balances for or click Beginning Period to enter beginning balances. For information about entering beginning balances, see the Enter Beginning Balances topic.
If you purchased CenterPoint Payroll and Direct Deposit, see the Direct Deposit: Setup & Processing topic.
If you plan to electronically transfer payments to payees, see the ACH Setup & Processing document for more information.
Click Save to save the account and return to the List tab, or click Close to save the account and close the Accounts screen.

Using Subaccounts

Subaccounts allow you to group similar accounts and gives you the option to summarize or detail those account balances on financial reports. The use of subaccounts is optional. When using subaccounts, the summarizing account and all detail accounts are setup as Accounts. In the example displayed below, the Building Repairs, Equipment Repairs and Truck Repairs are all subaccounts of the Repair Expense account.

Using the steps in the above Creating an Account section, create a main account that will be used to summarize a group of sub-accounts. This main account is referred to as a Level 1 account. In our example, we'll setup an account called "Repair Expense".

Follow the Creating an Accounts steps again to create subaccounts of this new account. Prior to clicking Save on the new subaccounts specify the Level 1 account (in our example, Repairs Expense account) in the Subaccount field. Subaccounts are referred to as a Level 2 account.

When adding any additional accounts that should be part of the "Repairs" group, assign the Repairs Expense account in the Subaccount of field.

Note: you can also create Level 3 accounts (subaccounts of subaccounts) by creating an account that has a subaccount assigned in the Subaccount of field.

Printing Financial Statements With or Without Subaccount Details

When printing Financial Statements, the Detail Level field in Report Selections allows you to decide how much detail to include on the reports when using subaccounts.

If Level 3 is selected in the Detail Level field, all accounts and their balances will displayed.

Note: In this example, if we had selected Level 2 instead, the 2005 Ford F250 would not have been displayed as it's a Level 3 account (subaccount of a subaccount).

If Level 1 is selected in the Detail Level field, only the level 1 accounts will be displayed. All subaccount balances be summarized to the Level 1 account.

Accounts that Automatically Calculate Amounts in Transaction Entry

An account can be setup with a price assigned to it so that instead of entering in the amount during a transaction, you can enter the quantity and have the amount calculate based on the account price set up for the account. Additionally, you can record a different price for each customer or vendor that this account is used for. This process is normally done on revenue/income accounts.

Using the steps outlined above in Creating an Account, create a new or edit an existing sales account.
Prior to saving the new account, select the Prices tab.

Specify a price in the Unit of Measure 1 Price field or Unit of Measure 2 Price field. The maximum number of decimals are set in File > Preferences > General > Quantity Decimal Settings.
If you prefer, select the Set Prices by Name field so that you can specify different prices depending on whom the product is sold to.

Click Save to save the account and return to the List tab, or click Close to save the account and close the Accounts screen.

Maintenance Options of Existing Accounts:

Edit/Change an Existing Account

All information on an existing Accounts can be modified. All history and balances will stay with the Account.

Select Setup > Accounts > Accounts.
Select the Account to be changed and click Edit (or simply double click on the appropriate Account). Edit the details as needed.
Click Save to save the Account and return to the List tab, or click Close to save the Account and close the Account screen.

Note: To return to the List tab without saving, click Cancel.

Delete an Existing Account

The delete button completely removes a Account from the system.

Note: You cannot delete a record that has any type of history or other records linked to it in the system. If you have a Account that is no longer being used, but does have historical activity, please refer to the instructions below on how to change the status to inactive.

Select Setup > Accounts > Accounts.
Select the Account to be changed and click Delete.
At the Are you sure you want the item delete? message, click Yes.

Change the Status of an Existing Account

Accounts that are no longer being used, but have history, can be deactivated.

Note: Accounts may not be deactivated if there are active lower level accounts or active items. On transaction screens, the list of Accounts will only include active names. Filters can be created in reports, lists, etc. to only include active Accounts. Accounts can be active for some ompanies/funds, and not for others. Accounts may not be activated if the higher level account is inactive.

Select Setup > Accounts > Accounts.
Right-click on the appropriate Accounts, and select Activate/Deactivate. Select the companies/funds the Accounts is inactive in, and then click OK.

Combine Two Existing Accounts

The combine button allows you to combine two existing Accounts. For example, if the same Account was inadvertently setup twice and both used on transactions. The combine button allows you to combine all history and balances for the two Accounts and remove one of the Accounts. Note: We recommend you take a backup prior to combining two items as there is not a way to "uncombine" two items.

Select Setup > Accounts > Accounts.
Select the Account to be combined with another and click Combine. The Account selected in this step is the item that will be removed after the two Accounts are combined.
In the Combine screen, select the Account it should be combined into and click OK.

Document: 3110

CenterPoint® Fund Accounting - Understanding & Using Accounts