Create Default Chart of Accounts

Enter the following Control Accounts that System Five needs from your existing chart of accounts. You can make these any number you wish, as long as assets stay in the assets, etc.

Accounts Receivable - Asset This is the ledger number all Charge Invoices will post against. (Payments on Work Orders will also post against this number unless you fill in the Deposits on Work Order Ledger Number.
Accounts Payable - Liability This is the ledger number all bills and cheques will post against. If you have a foreign bank account that you write cheques to suppliers to, you can also fill in the Accounts Payable Foreign.
Accounts Payable Foreign - Liability (default blank) If you have a foreign bank account that you write cheques to suppliers to, you can also fill in the Accounts Payable Foreign. If you choose this option, every supplier must be flagged as Yes or No to Alternate A/P. You must also fill in the Foreign Bank if you use this option.
Main Bank. - Asset. This is your main bank account that cheques from the Accounts Payable will draw from. This can be changed when creating cheques in the Accounts Payable cheque creation.
Foreign Bank. Asset (default blank) This must be filled in if and only if you are using the Accounts Payable Foreign
Cash Clearing - Asset. This ledger number is the value of all cash, cheques, credit cards, debit cards that are in your cash drawer including the float. When you deposit your money into the bank, you must create a journal entry that deposits the cash clearing money into the appropriate bank accounts. The Point of Sale Transaction Report is used to help reconcile you cash clearing account.
Payments Received - Asset (default - same as Cash Clearing). The ledger number that all cash, cheques, credit cards, debit cards are posted into from payments received.
Deposits on Work Orders. Liability (default blank). If you take deposits on special orders and you wish to consider deposits on orders as a Liability then enter a liability number here. When the invoice is changed from a Work Order to Accounts Receivable Invoice, the liability entry is reversed.
Paid Out Holding. Asset - This is the paid out clearing account that paid out invoices will post to. This should be cleared to the appropriate asset or expense account as required. This enables a book keeper to post the Paid out to the appropriate ledger number at day or month end instead of requiring a clerk to make this decision.
A/R Interest Charged - Income. This ledger number is where Interest Invoices is charged to.
Inventory - Asset. This is the ledger number for all inventory items. There is an option for different categories to post to other Inventory accounts, however it is not recommended unless you can easily distinguish which items go to which inventory account. You do not need to have a different Inventory account for each category because the Inventory Reports will give you this information.
Retained Earnings - Owner Equity. The ledger number retained earnings are posted to. All income, cost of sales and expenses are automatically tallied into this account from the previous year.
Duty (not used any more);
Unearned Revenue (new to 5.30). This account is used on B (backorder) type invoices which are invoices A/R invoices which have some back ordered items that still need to be shipped. The unearned revenue account is for Accounts Receivable that has been invoices, but not delivered. This should be a liability account.

Choose the Country that matches your countries accounting standards the best.

This button will create the System Five Chart of Accounts.

If this button is grayed out, then some ledger numbers have already been created.

This can be overridden with Supervisor Mode.