The system accounts are a pre-defined set of accounts that your accounting system requires in order to post transactions. These are mapped to a specified account in your accounts list. Your Accounts List does show the System Accounts under "restrictions" in the list. The System Accounts list is Global – the mapping holds for all divisions.
Note: Please note and we dont recommend changing System Accounts to other accounts for accounting purposes. Changing system accounts to another account for transactions in order to restore the previous system account you will have to delete all transaction in that account.
While the System Account is linked to an account, you will not be able to delete this account from your Accounts list.
Some system accounts have blocks against posting manually to them. These accounts have been identified as being accounts that should only have postings as a result of another transaction.
These accounts include:
- Accounts Receivable
- Accounts Payable
- Current Year Earnings
- Sales tax – paid and collected
- GST Payments | Refunds
We have taken a screenshot of a standard System Accounts list which should be suitable for most businesses that are only using one currency and accrual account method. If you are using Cash Accounting Method then you wil also need two other system accounts; "Cash Accounting AP Holding" and "Cash Accounting AR Holding".
An example system account usage is the System Account for Accounts Receivable.
This is mapped to your Accounts Receivable Account in your Accounts List. When a sale is posted, the System Account for Accounts Receivable is used (if there isn't one the transaction will fail)