Quick Jump Menu
Advanced Search Search the Knowledgebase
Maintaining Debtor Accounts
Author: Bruno Reference Number: AA-08310 Views: 81 Created: 2018-10-29 17:02 Last Updated: 2018-10-29 17:02 0 Rating/ Voters

How to setup Debtor Accounts?

At the basic level we can setup the Debtor Control Accounts at the function in:

Housekeeping -->Setup --> General Setup:

Debtor Control Groups

From   3000/000   *** this is default setting ***

To 3000/000

The GL account maintenance should have the account 3000/000 Trade Debtors as current assets in the accounting ledger.  This is called the “Parent Account or Main Account/Ledger”. 

Any combination with the code 3000/*** will be the “Child Account” or “Subsidiary Account”.  For example,

3000/A01 Apple Software Company PTE LTD

3000/B01 Big Apple Company PTE LTD

3000/C01 China company SDN BHD

However, these accounts can only be added in Debtor File Maintenance as this is a special account for debtor or customer accounts.

If we are to assign to Debtor Control Groups as:

From 300A/000

To 301Z/000

What does this mean? 

The Chart of Account will then assign any GL Code created from 300a-Z, or, 3001-9 as Debtor Accounts to any combination code 301a-Z or 3010-9 as Debtor accounts.

Thus, if you create 3010/001 CIMB bank Account as current asset in your ledger, it will be included in Debtor Maintenance Group for debtor accounts.

You should then change the account number to 3020/001, 3021/001 or any number after 3010 as current asset non-debtor account.

What is the effect for maintaining the Bank account as non-debtor accounts?

1.   You will be able to generate balance sheet report without grouping the Bank accounts to debtor maintenance.

2.    You will be able to call out the listing in payments and receipts function for a list of transactions that was in your AR (accounts receivable) and AP (accounts payables) for quick and easy ac

Similarly, you can apply this in Creditor Maintenance:

Housekeeping --> Setup--> General Setup:

Creditor Control Groups

From 4000/000   *** the is the default Setting

To 4000/000

Changing the range of Creditor groups can also affect how reports and functions of other account types in the system.

How to change ledger account codes?

Function to change can be found in:

Housekeeping --> Administrative Tools --> Tools --> 1. Change Account No --> Apply

Set as above and click OK, and, click OK again.

Reason is:  The 3010/001 is set as Debtor Control Group.

To change the Bank Parent account:

Now that we have 3021/001 as a child account, you can assign a parent account 3021/000 to it.  This will indicate that any new child account under the main account code 3021/000 will be collected or calculated into the main current asset ledger 3021/000.


Example:

You can have 3021/001 CIMB bank Account                 100,000.00

You can have 3021/M02 Maybank Account                          100.00

You can have 3021/HL3 Hong Leong bank Account              50.00

You can have 3021/P04 PBB bank Account                            65.00

All the ledger balances will be compiled into the main account 3021/000.  Then we can assign the name of the Main Ledger as Bank and Cash balances.  This Main account will also be shown in your Balance Sheet report as the current asset:

Bank and Cash balances                 300,215.00

 

Attachments
Maintaining Debtor Accounts.pdf 0.3 Mb Download File
Rss Comments
  • There are no comments for this article.
Info Add Comment
Nickname: Your Email: Subject: Comment:
Enter the code below: