What is Account Category
FoundryBean Global Work System for finance and accounting is structured based on hierarchical structure of accounts .It enables finance level consistency across the organization .
Account Category is a hierarchical structure with parent child relationship between the accounts . There are 3 level of hierarchical structure maintained in the system. First level is the main account Category.
Main Account Category
Main Account Category is based on 5 core types of accounts in accounting
- Assets.
- Expenses.
- Equity.
- Liabilities.
- Income or revenue.
Balance sheet is based on assets, liabilities and equity whereas income statement is based on revenue and expenses.
Although businesses have many accounts in their books, every account falls under one of the these five categories.
Summary Account Category
Summary Account Category is the child of one of the Main Account Category . In other words Summary Account Category is the sub-account of Main Account Category . These categories represents
You can create many Summary Account Category for each main category account
Detail Account Category
Detail Account Category is the sub-account (child account) of Summary account category.
Detail Account Category is the lowest level category before a General Ledger account is created.
You can create many detail account category for each summary category account
How to Define an account category
There are two ways account categories can be defined
- Manual method
- Automatic method while uploading GL Accounts.
Manual method:
In the manual method , user can create a category by giving the category name and the parent category .
Automatic method:
While uploading GL account , account categories are automatically created along with account hierarchies.
