The Account line of financial statements is used to select an account depending on its code in the Chart of Accounts, and to display amount transactions for this account such as Debit, Credit, Balance, Increase and Decrease on a single line. The Account line can be independent from other groups, or can be the sub-line of another group depending on the definition code. Furthermore, it is also processed in the calculation of Subtotal and Grand Total information located in subsequent lines.
The amount to be displayed on the Account line is equalized to the amount of the G/L account specified on the Account Code field for which the type is selected on the Account Amount field.
The following information is recorded on the account definition window:
Definition Code: The line of the G/L account. If this code is specified according to the level-based structure, it can be the sub-line of a group. Since this code is applied only for financial statements, it shouldn't be confused with the G/L Account Code. Other lines cannot be connected as sub-lines to an account line no matter what definition code is used. In other words, the account amount information is not affected by other lines, and is generated only according to the amounts (debit, credit, etc) of the defined account.
Definition Name: The description of the account line entered on the code field. This description is displayed next to the account code.
Account Code: The account of which the amount (debit, credit, balance, etc) will affect the amount line is selected according to the G/L code on the Chart of Accounts. The Debit, Credit and Balance amounts of the selected G/L account generate the amount of the account line at the end of this transaction.
Analysis Dimension: Debit and credit amounts are transferred from the analysis dimension detail lines if analysis dimension is selected while calculating financial table lines.
Reporting: This option can be used if the line of the defined group is not to be displayed on the financial statement report. The effect of this option is only visual, and prevents the account line only from being printed on the table report. The options are:
- Do Not Print
Inverse Balance: This option is used to avoid the amount information from being displayed on the table report by selecting “Do Not List” if the total amount of this account is negative. The options are:
- List
- Do Not List
Account Amount: Indicates the type of information to be used to calculate the amount of the G/L account defined as account amount. For example, if Account Code is selected as 100 and Account Amount is selected as Debit, the amount information to be displayed for this line on the financial statement report is equal to the debit of the account with code 100 at the date of the table.
The options are:
- Balance
- Debit
- Credit
- Debit Balance
- Credit Balance
- Increase
- Decrease
- Balance as of Period Beginning
- Balance as of Period End
- Debit within Period
- Credit Within Period
- Balance Within Period
Transaction Type: This information indicates how the amount of the account line will affect the Subtotal and Grand Total fields located on subsequent lines.
If the defined account line is used as a sub-group due to the coding method, this option also specifies how the line amount will affect the main group. The options are:
- Add
- Delete
- Do Not Process
Exchange Rate to Use: When the table report is generated with a different currency, the amount on the account line must be calculated with that currency type.
If Exchage Rate of Reporting Date is selected, the amount is calculated in local currency. The amount in F.C. is calculated by dividing the calculated amount to the reporting currency exchange rate on report date.
When Exchange Rate on Transaction Date is selected, amounts are calculated by processing the monthly Reporting Currency totals (debit, credit, debit balance, credit balance) recorded in connection with the G/L Account. Local Currency information is not used in any stage. Since monthly foreign currency totals in G/L accounts are updated with the exchange rates on transaction dates, financial statements are generated using the exchange rates on transaction dates. The options are:
- Exch. Rate on Reporting Date
- Exch. Rate on Transaction Date
Account Type: The account type specified here works in connection with the account amount parameter described above and affects the calculation of “Increase” and “Decrease” amounts. Such as,
If account type is debit:
Balance = debit – credit
If account type is credit:
Balance = credit – debit
Therefore, this change of direction also has an effect as below:
Increase = Period End Balance - Balance as of Period Start (if positive)
Decrease = Period End Balance - Balance as of Period Start (if negative)
The account type field options are:
- Debit
- Credit
Comparison Codes: The field used to enter the codes of the related accounts in order to display the effect of sub-accounts that form the group on the balance of these groups as a percentage while the related financial statement report is generated. In other words, these are the definition codes required to compare sub-totals and account totals that affect general totals. Example: In order to display the effect of the sub-group 01.1 Cash Equivalent Assets on the general total of 0.1 Current Assets, 01.1 must be entered for the first comparison code in the 01 Current Assets Group definition.