Account Categories - Setup Tutorials

Overview

Account Categories refer to the main sections of the Statement of Profit or Loss and the Statement of Financial Position. 

In this tutorial, you will learn how to create the necessary Account Categories.

Navigation: Main Menu > Setup > Accounting > Categories (tab).

How to Create a New Category

1. Click Add Account Category (button).

2. Type in a Description.

3. Select a Type from the dropdown list. The options are:

   1. • Revenue (e.g. Sales or Services Rendered)

      • Cost of Sales (e.g. Purchases, Stock Movement)

      • Expenses (e.g. Salaries and Wages)

      • Equity (e.g. Shares)

      • Assets (e.g. Office Equipment, Bank Accounts, Customers)

      • Liabilities (e.g. Loans, Suppliers, VAT Control)

4. Select a VAT Reporting category from the Report dropdown list:

   1. • Inc. VAT (the amount will generally include VAT (e.g. Long-Term Loans)).

      • Exc. VAT (the amount will generally exclude VAT (where VAT was claimed back, e.g. Expenses)).

      • VAT (the VAT Control account that exists only for VAT).

How to Delete a Category

1. Navigate to Categories.

2. Click the selected category you want to delete.

3. Click on the X at the end of the row.

   • Note: A category that has been used cannot be deleted.

How to Edit a Category

1. Navigate to Categories.

2. Select a Category and change any of the fields by overtyping the existing content.