5.

2
Sage 300

Creating the Chart of Accounts and

Batch Processing in the General Ledger

Slideshow 3
List of Topics Slide No.

Chart of Accounts 3
Order of Entering Accounts 6

Printing the Chart of Accounts 9

Entering and Posting Opening Account Balances 10
Printing Financial Statements 14
Chart of Accounts
When creating a Chart of
Accounts, it is important to design
it in order that you will be able to
produce good financial reports
and to allow for future growth of
the business. Time spent in
careful planning is worth it.
To open the G/L Accounts
window, remember that you need
to double-click on the Accounts
icon (NOT the Chart of Accounts
icon) on the right-pane desktop.
Click the ACCOUNTS icon now.

In entering the Account Number,

you must remember the Account
Structure codes you have
specified earlier: ACC - 4-digit
number (xxxx) for regular
accounts; DEPT- 6-digit number
(xxxx-xx) for accounts specifying
department. The two fields must
correspond with each other;
otherwise, you will get an error
message.
Click to continue.
Chart of Accounts
(continued)

Study the options for Account

Type.
Click.

ACCPAC places debits on the left

and credits on the right. If an
account balance is zero, ACCPAC
follows the Normal Balance Rule
to determine which side to put it.
Click.
The use of Account Groups is
optional; however, account groups
are necessary if using the
predefined specifications for
financial reports.
There are 16 pre-defined Account
Group Names (see right). You
may assign your own Account
Number Ranges, normally in the
same order as standard account
classifications.
Study a typical set of Account
Group Names with the
corresponding Account Number
Range.
Click to continue.
Income Statement (I) – accounts that
Account Type Normal Balance
normally appear on the Income Statement.
Asset ACCPAC calculate
Dr totals in all I accounts to
report the net income.
Liability Cr
Balance Sheet (B) – accounts that normally
Equity appear on the Balance Sheet. Cr
Revenue Retained Earnings (R) - theCraccount to
which Revenue and Expenses accounts are
Expense closed to at Dr
year-end. Even though the
Retained Earnings account appear on the
Balance Sheet, it must be specified as
Retained Earnings in the Account Type
field.
Chart of Accounts
(continued)

You can post entries only to

active accounts. Before a G/L
account can be deleted, it must
be made inactive.
Click.

If Detail is selected (preferred), all

transaction details for every entry
are maintained; if Consolidated,
the posting from each batch is
summarized into one line and
Control Accounts are
transaction details are lost.
general ledger accounts
Click. that have the balances
for subsidiary legers. For
The Control Account box is example, ACCOUNTS
checked only after the subsidiary PAYABLE is the control
ledger has been set up and the account for the A/P
opening balances posted. Study subledger.
the explanation.
Click.

You would select Auto Allocation

only if an entry to the account is
automatically reallocated to other
G/L accounts; e.g., rent may be
reallocated to the three depart-
mental rent expense accounts.
Click to continue.
 Ac c o unt N o . De s c riptio n S truc ture Ba la nc e Type
Order of Entering 1000 Ca sh ACC Dr B
1010 Pe tty Ca sh ACC Dr B
Accounts 1200
1300
Ac c ounts Re c e iva ble
Produc t Inve ntory
ACC
ACC
Dr
Dr
B
B
1400 Supplie s on Hand ACC Dr B
At the right is AAU'sChart of 1500
1600
Pre pa id Expe nse s
Se rvic e Equipme nt
ACC
ACC
Dr
Dr
B
B
Accounts. Because Retained 1610
1700
Offic e Equipment
Ac c umula te d Amortiza tion - Se rvic e Equip
ACC
ACC
Dr
Cr
B
B
Earnings needs to be entered 1710
1800
Ac c umula te d Amortiza tion - Offic e Equip
Inc orpora tion Costs
ACC
ACC
Cr
Dr
B
B
before any other account and 2000
2200
Ba nk Ope ra ting Loa n
Ac c ounts Pa yable
ACC
ACC
Cr
Cr
B
B
entering the various types of 2230
2250
Ac c rue d Lia bilitie s
GS T Cha rge d on Sa le s
ACC
ACC
Cr
Cr
B
B
accounts (Balance Sheet, Income 2260
2280
GS T Pa id on Purc ha se s
PST P a ya ble
ACC
ACC
Dr
Cr
B
B
Statement, Auto Allocation) 2350 CPP P a ya ble ACC Cr B
2360 EI Pa ya ble ACC Cr B
require slightly different 2380 Inc ome Ta x Withholding Pa ya ble ACC Cr B
2390 Pa yroll Cle a ring ACC Cr B
procedure, a certain order must 2500 Suspe nse ACC Cr B
2900 Note Pa ya ble ACC Cr B
be followed. Below is one 3000 Common Stoc k ACC Cr B
3400 Re ta ine d Ea rnings ACC Cr R
approach. Click each step below: 4000-10 Se rvic e Re ve nue DEPT Cr I
4000-20 Produc t Sa le s Re ve nue DEPT Cr I
4200-10 Sa les Disc ounts - Se rvic e DEPT Dr I
1. Enter Retained Earnings 4200-20 Sa les Disc ounts - Produc t DEPT Dr I
4300-20 Sa les Re turns & Allowa nc e s - Produc t DEPT Dr I
account. 5000-20 Ope ning Inve ntory DEPT Dr I
5100-20 Purc ha se s DEPT Dr I
5300-20 Purc ha se Re turns & Allowa nc e s DEPT Cr I
Notice that although Retained 5500-20
ACCOUNT page on the G/L
Closing Inve ntory DEPT Cr I
6000-10 Adve rtising Expe nse - Se rvic e DEPT Dr I
Earnings is found on the Balance 6000-20 Options window.
Adve rtising Expe nse - Produc t DEPT Dr I
6010-10 Sa lary Expe nse - Se rvic e DEPT Dr I
Sheet, the account type for this 6010-20 Sa lary Expe nse - Product DEPT Dr I
6010-30 Sa lary Expe nse - Offic e DEPT Dr I
account is Retained Earnings. 6020-10 Be ne fit Expe nse - Se rvice DEPT Dr I
6020-20 Be ne fit Expe nse - Produc t DEPT Dr I
6020-30 Be ne fit Expe nse - Offic e DEPT Dr I
2. Assign Retained Earnings 6030 * Re nt Expe nse - Cle a ring ACC Dr I
6030-10 Re nt Expe nse - Se rvic e DEPT Dr I
as the Default Closing Account. 6030-20 Re nt Expe nse - Produc t DEPT Dr I
6030-30 Re nt Expe nse - Offic e DEPT Dr I
6040 * Utility Expe nse - Cle a ring ACC Dr I
“Closing Account” refers to the 6040-10 Utility Expe nse - Se rvic e DEPT Dr I

account to which the balances in 6040-20

6040-30
Utility Expe nse - Produc t
Utility Expe nse - Offic e
DEPT
DEPT
Dr
Dr
I
I

the revenue and expense 6050-20

6060-10
De live ry Expe nse - Produc t
Supplie s Expe nse - Se rvic e
DEPT
DEPT
Dr
Dr
I
I
accounts are transferred at the 7000-30
7010-30
Insura nc e Expe nse
Ba nk Cha rge s Expe nse
DEPT
DEPT
Dr
Dr
I
I
end of the fiscal year. 7020-30
7030-30
Amortiza tion Expe nse
Ba d De bt Expense
DEPT
DEPT
Dr
Dr
I
I
7040-30 Offic e & Ge ne ra l Expe nse DEPT Dr I
3. Define Segment Codes for 7050-30
7090-30
Te lephone & Inte rne t Expe nse
Misc e lla ne ous Expe nse
DEPT
DEPT
Dr
Dr
I
I
Departmental Accounts. 7095-30
8000-30
Ve ndor Disc ounts Ta ke n
Inte re st Expe nse
DEPT
DEPT
Cr
Dr
I
I
 Ac c o unt N o . De s c riptio n S truc ture Ba la nc e Type
Order of Entering 1000 Ca sh ACC Dr B
1010 Pe tty Ca sh ACC Dr B
Accounts 1200
1300
Ac c ounts Re c e iva ble
Produc t Inve ntory
ACC
ACC
Dr
Dr
B
B
1400 Supplie s on Hand ACC Dr B
Segment Codes are used by AAU 1500
1600
Pre pa id Expe nse s
Se rvic e Equipme nt
ACC
ACC
Dr
Dr
B
B
to assign department numbers 1610
1700
Offic e Equipment
Ac c umula te d Amortiza tion - Se rvic e Equip
ACC
ACC
Dr
Cr
B
B
and descriptions for its three 1710
1800
Ac c umula te d Amortiza tion - Offic e Equip
Inc orpora tion Costs
ACC
ACC
Cr
Dr
B
B
departments. Notice that 2000
2200
Ba nk Ope ra ting Loa n
Ac c ounts Pa yable
ACC
ACC
Cr
Cr
B
B
accounts marked DEPT have 2 2230
2250
Ac c rue d Lia bilitie s
GS T Cha rge d on Sa le s
ACC
ACC
Cr
Cr
B
B
extra digits in the Account No. to 2260
2280
GS T Pa id on Purc ha se s
PST P a ya ble
ACC
ACC
Dr
Cr
B
B
designate specific departments. 2350 CPP P a ya ble ACC Cr B
2360 EI Pa ya ble ACC Cr B
2380 Inc ome Ta x Withholding Pa ya ble ACC Cr B
Continue to click each step 2390 Pa yroll Cle a ring ACC Cr B
2500 Suspe nse ACC Cr B
below: 2900 Note Pa ya ble ACC Cr B
3000 Common Stoc k ACC Cr B
3400 Re ta ine d Ea rnings ACC Cr R
4. Enter Balance Sheet 4000-10 Se rvic e Re ve nue DEPT Cr I
4000-20 Produc t Sa le s Re ve nue DEPT Cr I
accounts. 4200-10 Sa les Disc ounts - Se rvic e DEPT Dr I
4200-20 Sa les Disc ounts - Produc t DEPT Dr I
4300-20 Sa les Re turns & Allowa nc e s - Produc t DEPT Dr I
Study the example. 5000-20 Ope ning Inve ntory DEPT Dr I
5100-20 Purc ha se s DEPT Dr I
5300-20 Purc ha se Re turns & Allowa nc e s DEPT Cr I
5. Enter Income Statement 5500-20 Closing Inve ntory DEPT Cr I
6000-10 Adve rtising Expe nse - Se rvic e DEPT Dr I
accounts. 6000-20 Adve rtising Expe nse - Produc t DEPT Dr I
6010-10 Sa lary Expe nse - Se rvic e DEPT Dr I
6010-20 Sa lary Expe nse - Product DEPT Dr I
This is when you would use the 6010-30 Sa lary Expe nse - Offic e DEPT Dr I
6020-10 Be ne fit Expe nse - Se rvice DEPT Dr I
Account Structure DEPT and the 6020-20 Be ne fit Expe nse - Produc t DEPT Dr I
6020-30 Be ne fit Expe nse - Offic e DEPT Dr I
Segment Codes (10, 20, 30) that 6030 * Re nt Expe nse - Cle a ring ACC Dr I
6030-10 Re nt Expe nse - Se rvic e DEPT Dr I
you defined earlier. 6030-20 Re nt Expe nse - Produc t DEPT Dr I
6030-30 Re nt Expe nse - Offic e DEPT Dr I
6040 * Utility Expe nse - Cle a ring ACC Dr I
6. Define Auto Allocation 6040-10 Utility Expe nse - Se rvic e DEPT Dr I
6040-20 Utility Expe nse - Produc t DEPT Dr I
accounts. 6040-30 Utility Expe nse - Offic e DEPT Dr I
6050-20 De live ry Expe nse - Produc t DEPT Dr I
6060-10 Supplie s Expe nse - Se rvic e DEPT Dr I
7000-30 Insura nc e Expe nse DEPT Dr I
7010-30 Ba nk Cha rge s Expe nse DEPT Dr I
7020-30 Amortiza tion Expe nse DEPT Dr I
7030-30 Ba d De bt Expense DEPT Dr I
7040-30 Offic e & Ge ne ra l Expe nse DEPT Dr I
7050-30 Te lephone & Inte rne t Expe nse DEPT Dr I
7090-30 Misc e lla ne ous Expe nse DEPT Dr I
7095-30 Ve ndor Disc ounts Ta ke n DEPT Cr I
8000-30 Inte re st Expe nse DEPT Dr I
 Ac c o unt N o . De s c riptio n S truc ture Ba la nc e Type
Order of Entering 1000 Ca sh ACC Dr B
1010 Pe tty Ca sh ACC Dr B
Accounts 1200
1300
Ac c ounts Re c e iva ble
Produc t Inve ntory
ACC
ACC
Dr
Dr
B
B
1400 Supplie s on Hand ACC Dr B
AAU records the payment for rent 1500
1600
Pre pa id Expe nse s
Se rvic e Equipme nt
ACC
ACC
Dr
Dr
B
B
to 6030 Rent Expense – 1610
1700
Offic e Equipment
Ac c umula te d Amortiza tion - Se rvic e Equip
ACC
ACC
Dr
Cr
B
B
Clearing. At period end, the 1710
1800
Ac c umula te d Amortiza tion - Offic e Equip
Inc orpora tion Costs
ACC
ACC
Cr
Dr
B
B
balances in these accounts are 2000
2200
Ba nk Ope ra ting Loa n
Ac c ounts Pa yable
ACC
ACC
Cr
Cr
B
B
reallocated to the three 2230
2250
Ac c rue d Lia bilitie s
GS T Cha rge d on Sa le s
ACC
ACC
Cr
Cr
B
B
departments as per the table. 2260
2280
GS T Pa id on Purc ha se s
PST P a ya ble
ACC
ACC
Dr
Cr
B
B
2350 CPP P a ya ble ACC Cr B
Click. 2360 EI Pa ya ble ACC Cr B
2380 Inc ome Ta x Withholding Pa ya ble ACC Cr B

Notice that the Account Structure 2390

2500
Pa yroll Cle a ring
Suspe nse
ACC
ACC
Cr
Cr
B
B

for the clearing accounts is ACC 2900

3000
Note Pa ya ble
Common Stoc k
ACC
ACC
Cr
Cr
B
B
and not DEPT. 3400
4000-10
Re ta ine d Ea rnings
Se rvic e Re ve nue
ACC
DEPT
Cr
Cr
R
I
4000-20 Produc t Sa le s Re ve nue DEPT Cr I
Click. 4200-10 Sa les Disc ounts - Se rvic e DEPT Dr I
4200-20 Sa les Disc ounts - Produc t DEPT Dr I
4300-20 Sa les Re turns & Allowa nc e s - Produc t DEPT Dr I
Study the Detail page for the 5000-20
5100-20
Ope ning Inve ntory
Purc ha se s
DEPT
DEPT
Dr
Dr
I
I
Rent Expense – Clearing 5300-20
5500-20
Purc ha se Re turns & Allowa nc e s
Closing Inve ntory
DEPT
DEPT
Cr
Cr
I
I
account. 6000-10 Adve rtising Expe nse - Se rvic e DEPT Dr I
6000-20 Adve rtising Expe nse - Produc t DEPT Dr I
6010-10 Sa lary Expe nse - Se rvic e DEPT Dr I
Click the ALLOCATION tab. 6010-20 Sa lary Expe nse - Product DEPT Dr I
6010-30 Sa lary Expe nse - Offic e DEPT Dr I

Notice the Account numbers 6020-10

6020-20
Be ne fit Expe nse - Se rvice
Be ne fit Expe nse - Produc t
DEPT
DEPT
Dr
Dr
I
I
consisting of two segments. 6020-30
6030
Be ne fit Expe nse - Offic e
* Re nt Expe nse - Cle a ring
DEPT
ACC
Dr
Dr
I
I
6030-10 Re nt Expe nse - Se rvic e DEPT Dr I
Click. 6030-20 Re nt Expe nse - Produc t DEPT Dr I
6030-30 Re nt Expe nse - Offic e DEPT Dr I
6040 * Utility Expe nse - Cle a ring ACC Dr I
Also notice the percent allocation. 6040-10
6040-20
Utility Expe nse - Se rvic e
Utility Expe nse - Produc t
DEPT
DEPT
Dr
Dr
I
I
6040-30 Utility Expe nse - Offic e DEPT Dr I
Click to continue. 6050-20 De live ry Expe nse - Produc t DEPT Dr I
6060-10 Supplie s Expe nse - Se rvic e DEPT Dr I
7000-30 Insura nc e Expe nse DEPT Dr I
7010-30 Ba nk Cha rge s Expe nse DEPT Dr I
7020-30 Amortiza tion Expe nse DEPT Dr I
7030-30 Ba d De bt Expense DEPT Dr I
7040-30 Offic e & Ge ne ra l Expe nse DEPT Dr I
7050-30 Te lephone & Inte rne t Expe nse DEPT Dr I
7090-30 Misc e lla ne ous Expe nse DEPT Dr I
7095-30 Ve ndor Disc ounts Ta ke n DEPT Cr I
8000-30 Inte re st Expe nse DEPT Dr I
Printing the Chart of
Accounts
Study how the printed Chart of
Accounts would look like.

Establishing the New

Year
When you activated the G/L, you
specified 2021 as the current
fiscal year; however, ACCPAC
automatically backdated it to 2020
in case you wish to post entries to
prior fiscal period. You need to
advance to the new year to avoid
the error message “Cannot post
to a future year” when you start
entering transactions for 2021.
BE SURE TO BACK UP YOUR
DATA before advancing to 2020.
Click to continue.
Entering and Posting
Opening Account
Balances
Time and effort should be spent
to ensure that the balances
forwarded are entered accurately.
This involves creating and posting
a batch in the G/L.

One thing you need to remember

when entering the opening
account balances: You MUST
enter the balances of ALL
accounts in ONE ENTRY;
otherwise, your credits and debits
will not be equal.

Your text will give you step-by-

step instructions.
Click each step below:

1. Establish the control

total.
In this case, use the current Trial
Balance. Study it at the right.

2. Create a new batch.

Entering and Posting
Opening Account
Balances (continued)
When you established the Fiscal
Calendar, you entered 1/1/2021
as the start of AAU's fiscal
calendar. You are, however,
converting on October 31, 2021
One thing you need to remember
when entering the opening
account balances: You MUST
enter the balances of ALL
accounts in ONE ENTRY;
otherwise, your credits and debits
will not be equal.
Click the next step below:

3. Enter and save the batch

data.
Entering and Posting
Opening Account
Balances (continued)
Ensure that the batch total is
equal to the debits and credits on
the Trial Balance.

Study the batch containing the

opening account balances.

4. Print the batch listing

and check accuracy.
Entering and Posting
Opening Account
Balances (continued)

Study the next steps below (do

not click until after you have
studied the whole slide):

5. Edit the batch, if

necessary.

6. Back up the data.

7. Set the batch Ready to

Post.

8. Post the batch.

9. Print the posting

Journal.

The Posting Journal must be filed

as part of the audit trail.

Click to continue.
Printing Financial
Statements
General Ledger comes with a set of seven
standard financial statements, which you
can use as is or modify to suit your
requirements. They include the following:
QuikBal1.xls.  Balance Sheet.
QuikBal2.xls.  Comparative Balance
Sheet (Current Balance/Previous Year).
QuikBal3.xls.  Comparative Balance
Sheet (Current Balance/Previous Period).
QuikInc1.xls.  Income Statement.
QuikInc2.xls. Comparative Income
Statement (Current Year/Last Year).
QuikInc3.xls. Comparative Income
Statement (Current Year/Budget).
QuikInc4.xls. Comparative Income
Statement (Current Year with Drilldown).
Because statements are created in a
spreadsheet, you can use any
spreadsheet formulas and functions to
perform relative-change calculations on
General Ledger figures.
For this course, you will be using modified
versions of the Financial Reporter
statements.
Click to continue.
More…

Go back to your text and proceed

from where you have left off.
Press ESC now, then click the
EXIT button.

EXIT