Account classes are sub-divided into different account groups. When you are adding accounts, the book and the account class is determined by the Account Group you select for the account. Below there is a separate section with more information about account groups.
Display (Open) an Account
Normally an existing account is opened from a link in another window. However, you can search for an account as well.
Search for an account in the search field in the top right-hand corner of the window. Enter the search string and click thebutton to find matching accounts.
In this window all accounts are searched, not only accounts that you can capture on. I.e. the list will also display parent accounts and system accounts
Edit an Existing Account
Click the Edit button. Proceed by editing any information on the account and save the changes.
Editing Accounts
Changing certain properties of accounts may invalidate your books. Therefore, it is highly recommended that you verify your changes with your accountant. Especially, take care not to change an account group that will move your account from the income statement to the balance sheet or vica versa. You should also be careful, not to change an account's parent account or other relationships without ensuring that your books remain valid.
Deleting an Account
Click the Delete button to delete the account. You will be asked to confirm that you want to delete the account.
Can The Account Be Deleted?
Only accounts with no transactions can be deleted.
Only accounts that have no sub-accounts or associated accounts can be deleted.
If any financial transactions have been entered for an account, it is not possible to delete the account. This is to preserve the integrity of your financial records, where every transaction has to be accounted for. The only exception is in the case of an incorrect entry which can be voided.
If the account cannot be deleted, you will be notified that the delete was unsuccessful.
Deactivating an Account
If it is not possible to delete an account, the account can be deactivated.
To deactivate an account, select status Inactive and click Save
An inactive account will not display in any selection boxes, and no new transactions can be added. However, inactive accounts may appear in statistical reports and can be reactivated at any time.
Filling Out Account Details
Field
Do
Account Number
This field contains the account number. Enter the account number you want to add. Account Number can be kept blank if you want the system to assign an account number. A ledger accounts has to have a number between 1000 and 9999.
If you are entering a parent for the account, this field is ignored. New sub-accounts are given a number based on the parent account.
Name
Enter the account name. This field is required
Account Code
Enter an Account Code for the account. This is an alphanumeric code that can be used to identify the account. It is used when searching for accounts. An account code is not required and can be left blank.
The Account Code must be unique across all general ledger account codes and party codes for customers and suppliers.
The account code can be used to store account numbers from third-party systems. It can be alphanumeric up to 25 characters long. When transactions are imported from third-party systems the account code can be used as the account identification for the account.
Group
Select the account group the account belongs to. See below for more about account groups.
Please note that a sub-account must belong to the same account group as its parent. Thus, if you change this setting for a sub-account you must select a new parent account for the account.
Income Statement Collection / Balance Sheet Collection
Select which account collection this account belongs to on the income statement or the balance sheet. If the account is a trading account, the income statement layout is listed in the dropdown box. For real accounts (assets, liabilities and equity) the balance sheet layout is listed.
The selected collection determines where the account will be position on the income statement or balance sheet respectively. An account must belong to one of the collections. Click here to read more about customising your income statement and balance sheet.
Please note that your selection is ignored if the account belongs to a parent. The setting of the parent account will override any changes you make.
Project Statement Collection
Select which account collection this account belongs to on the project statement. This field is only displayed for trading accounts (income or expenses). Real accounts (assets, liabilities and equity) cannot be allocated to projects.
The selected collection determines where the account will be positioned in the project statement. Click here to read more about customising your project statement.
Please note that projects are only available in certain editions and if the setting Project Accounting is enabled in Company Preferences.
Please note that your selection is ignored if the account belongs to a parent. The setting of the parent account will override any changes you make.
Tax Code
Select the default VAT Code for this account. Click here to learn more about VAT codes.
If you can claim input tax, and it is a fixed asset you should select the appropriate VAT code for Capital Goods. If you cannot claim input tax, select 0-rated.
Business Unit
Select the default business unit for the account.
Lock To Business Unit
The default busines unit setting does not disallow other business units to capture transactions on the account. If you want to lock the account to the default business unit, or sub-units of the default business unit, tick this checkbox. When an account is locked to a business unit, only that unit or its sub-units can capture transactions on the account.
Accounts are normally not locked to specific units. However, bank accounts should be locked to a unit when they are only to be used by a specific branch.
Status
Select a status for the account. If Inactive is selected, the account will not display when you search for accounts. If you change the status of a parent account, all sub accounts of that parent account will also be updated with the new status.
Account Type
Select whether this is a Normal Account, Parent Account or Sub Account.
Normal Accounts are stand-alone accounts that does not belong under a parent.
Parent Accounts cannot have transactions captured directly on them. The only act as parents for sub accounts. Please not that a parent account cannot be a sub account of another parent account.
Sub Accounts are accounts belonging to a parent. A parent account must be selected when the account type is Sub Account.
It is allowed to change the type for an account, however, an account cannot be made a parent account if it has transactions captured on it. Furthermore, a parent account cannot be changed to another type if it has sub accounts belonging to it.
Parent Account
Select the Parent Account for this account. Only available if the account is a sub account. Only parent accounts belonging to the same Account Group are available for selection.
Please note that for fixed asset accounts, the parent account is should be the Asset Class for the fixed asset.
It is recommended that cash accounts, bank accounts, checkbooks, credit cards, merchant accounts, employee private funds and bank overdrafts are created as sub-accounts of their respective parent accounts. This ensures that these accounts are grouped together.
Map To Group Account
Select which group account this account belongs to.
If a group account does not exist, it has to be created on the parent company before it can be mapped to.
This setting is only applicable for companies belonging to a parent company. In other words only subsidiaries will see this setting.
Bank Settings
Accounts belonging to account groups Bank Accounts, Bank Overdrafts, Credit Cards, Long-Term Liabilities, Short-term Liabilities, Tax Debt Accounts, or Merchant Accounts can have banking information linked to them.
Field
Do
Bank
Select which Bank the account is with.
If the account is not with a bank, select the option [Non-Bank]. If the bank is not listed as an option, select the option Other Bank.
Post Zero Amount Transactions on Electronic Statements
Enable this field if Electronic Bank Statement Records with a zero amount should be included and captured.
If not enabled, such zero amount records will be ignored. The recommended setting is disabled.
Default Electronic Bank Statement Format
This field contains the default file format you are using for the electronic bank statement (i.e. the machine-readable electronic bank statement file). For some banks there may be different file formats available. Select the format that you would be using for this bank account when you upload Electronic Bank Statements. The format can be overridden for individual files.
The selectable files are either general Electronic Bank Statement Formats or Direct Debit Receipt File Formats. The latter is used for bank accounts were Direct Debits are processed. In such cases the Receipt file is the file corresponding to the Default Direct Debit File selected in the field below.
This will allow you to upload Electronic Bank Statements for the account.
If the only available option is [None] it means that SMARTEDGE does not support Electronic Bank Statements from the selected bank
Default Direct Debit File Format
This field contains the default file format you are using for direct debit files (ACB Files for issuing direct debits) that you are sending to the bank/merchant electronically. For some banks/merchants there may be different file formats available. Select the format that you would be using for this bank account when you produce direct debit files. The format can be overridden for individual files.
If the only available option is [None] it means that SMARTEDGE does not support Direct Debit Files for the selected bank
Direct Debit Transaction Text
Select what should be used as the transaction text for transactions captured from a Direct Debit Run. The setting selected here will determine how the text for the transaction is created when processing the Direct Debit Receipt File.
0 - Standard System Transaction Text means the the transaction text will be determined by the type of transaction it is. Normally that would be Payment Received, but could also be the keyword for the transaction if the record is a transaction charge.
1 - Debit Order Run [date] means the the transaction text will set to Debit Order Run [date of debit], in other words [date] will be replaced with the actual date.
Default Payment Instruction File Format
This field contains the default file format you are using for payment instruction files (ACB Files for issuing payments) that you are sending to the bank electronically. For some banks there may be different file formats available. Select the format that you would be using for this bank account when you produce payment instruction files. The format can be overridden for individual files.
If the only available option is [None] it means that SMARTEDGE does not support Payment Instruction Files for the selected bank
Bank Account Number
Enter the actual bank account number for the bank. This field is not required, and it is only used for producing Payment Instruction Files (for example ACB files) to the bank.
This field is only enabled if a specific bank has been selected in the Bank field.
Bank Branch Code
Enter the bank's branch code. This field is not required, and it is only used for producing Payment Instruction Files (ACB files) to the bank.
This field is only enabled if a specific bank has been selected in the Bank field.
Bank Account Name
Enter the name of the bank account (the account holder). Normally this would be your company name. This field is not required, and it is only used for producing Payment Instruction Files (ACB files) to the bank.
This field is only enabled if a specific bank has been selected in the Bank field.
Electronic Integration User Name
Enter the Electronic User Name required when creating an ACB File for this bank account.
This field is only required by selected banks or merchants when creating an ACB File (Direct Debit File or Payment Instruction File). Please refer to the functional requirements document from the bank to check whether the field is required. If required please enter the User Name provided by the bank/merchant.
If used the user name will also be used as a prefix in the file name.
Electronic Integration Password
Enter the Electronic Password required when creating an ACB File for this bank account.
This field is only required by selected banks or merchants when creating an ACB File (Direct Debit File or Payment Instruction File). Please refer to the functional requirements document from the bank to check whether the field is required. If required please enter the Password provided by the bank/merchant.
Electronic Integration PIN
Enter the Electronic PIN required when creating an ACB File for this bank account.
This field is only required by selected banks or merchants when creating an ACB File (Direct Debit File or Payment Instruction File). Please refer to the functional requirements document from the bank to check whether the field is required. If required please enter the PIN provided by the bank/merchant.
Last File Sequence No.
Some banks/merchants require that direct debit files are created in a sequence. This field contains the last sequence number that was used for a direct debit file for this bank account. The field is updated automatically by SMARTEDGE when creating direct debit files.
You can use this field to change the Last File Sequence Number if it has become incorrect.
You should normally not change the value in this field.
Additional Field for Cheque Books
Field
Do
Bank Account
Select the bank account the cheque book belongs to. This is the bank account that will be used when you clear cheques written from this cheque book.
Additional Field for Credit Cards
Field
Do
Credit Card Supplier
Enter the supplier account for the credit card issuer. This would normally be the company issuing the credit card, or a bank. Credit Card Invoices for this credit card will be captured on this supplier.
You are not required to enter the full name of the account, but the name you enter must uniquely identify the supplier. If you are not sure if the name you have entered is unique, or exists, click theto search for a supplier matching your entry.
The supplier has to exist. Thus, you have to create the supplier before the credit card account can be added.
Additional Fields for Merchant Accounts
Field
Do
Merchant Supplier
Enter the supplier account for the merchant. This would normally be the company issuing acting as the merchant, or a bank. Merchant payments will be transferred via this account to your bank account when transferring merchant payments.
You are not required to enter the full name of the account, but the name you enter must uniquely identify the supplier. If you are not sure if the name you have entered is unique, or exists, click theto search for a supplier matching your entry.
The supplier has to exist. Thus, you have to create the supplier before the merchant account can be added.
Minimum Fee
Enter the minimum fee that the merchant charges for each transaction. If the merchant does not charge a minimum fee enter the value 0.
Fixed Fee
Enter the fixed fee that the merchant charges for each transaction. If the merchant does not charge a fixed fee enter the value 0.
Percentage Fee
Enter the percentage fee that the merchant charges for each transaction. Click here to find out more regarding minimum fees, fixed fees and percentage fees.
Different Account Groups
Accounts are generally classified as Expenses, Income, Assets, Liabilities or Equity. Within this classification there are groups of accounts specifying the use of the account.
Expenses
There are various types of expenses. For most expenses you would use the account group other operating expenses.
The following account groups exist for expenses:
Group
Description
Cost of Goods Sold
This group is used for expenses related to goods or services that you sell.
Personnel Expenses
This group is used for expenses related to your employees. This can be any type of employee expense such as salaries, awards, bonuses, entertainment etc.
Other Operating Expenses
This is the general group for expenses related to your operations. Examples of such expenses would be telephone, electricity, stationery, postage and other consumables.
Financial Expenses
This group is used for expenses related to financial transactions, such as bank fees, interest, currency loss etc.
Extraordinary Expenses
This group is used for expenses that occur seldomly and are not related to your day-to-day operations. You should always consult your accountant before using this group.
Taxes
This group is used for income tax accounts, and is set up automatically by the system for your income tax account. Normally, you would not add or change accounts for this group
Profit & Loss Account
This group is used for the profit & loss account, and is set up automatically by the system. You would not add or change accounts for this group.
Depreciation
This group is used for the depreciation account, which is set up automatically by the system. Normally, you would not add or change accounts for this group.
Income
Income accounts track your company's different types of income, for instance sales income.
The following account groups exist for income:
Group
Description
Sales Revenues
This group is used for revenues from goods or services that you sell. Accounts in this group are listed as sales accounts for your products.
Other Operating Income
This group is used for other income related to your operations.
Financial Income
This group is used for income related to financial transactions, such as interest, currency gain etc.
Extraordinary Income
This group is used for income that occurs seldomly and are not related to your day-to-day operations. You should always consult your accountant before using this option.
Assets
Your assets are basically divided into current assets and capital assets (short-term and long-term assets respectively). The following account groups exist for assets:
Group
Description
Bank Accounts
This group is used for your bank accounts.
Cash Accounts
This group is used for your cash accounts.
Trust Accounts
This group is used for bank accounts that are trust accounts for customers. When posting to a trust account, it is required to also specify which party the money belongs to. Trust accounts are otherwise treated as normal bank accounts.
Merchant Accounts
This group is used for your merchant accounts.
Other Current Assets
This group is used for other current assets. This could be shares held in a publicly listed company, or claims on third parties that are due within the next 3-6 months.
Inventory
This group is used for stocks of goods. You would normally not create a new account in this group because the system has accounts to automatically track stocks.
Fixed Assets
This group contains your fixed assets. These are assets that are depreciated over time for wear and tear. Fixed Assets are maintained in a separate window. Click Here to read more about addint fixed assets.
Other Capital Assets
This group is used for long-term claims on third parties.
Accounts Receivable
This group contains you customer accounts, and should only have one account, which is the parent account for all customers.You should not add or change accounts in this group.
Tax Debt Accounts
This group contains special bank accounts for outstanding taxes. Not used in South Africa.
Undeposited Checques
This group is used for the received cheques account, which is set up automatically by the system. Normally, you would not add or change accounts for this group.
Liabilities
Your liabilities are basically divided into short-term liabilities and long-term liabilities The following account groups exist for liabilities:
Group
Description
Checkbooks
This group is used for your checkbooks.
Bank Overdrafts
This group is used for your bank overdrafts.
Private Employee Funds
This group is used for your private employee funds.
Credit Cards
This group is used for your credit cards.
Value Added Taxes
This group contains accounts for tracking VAT. You should not add accounts to this group.
Short-term Liabilities
This group is used for your other short-term liabilities.
Long-term Liabilities
This group is used for your long-term liabilities such as mortgage loans and bonds.
Other Liabilities
This group is used for other liabilities, such as loans from owners.
Accounts Payable
This group contains you supplier accounts, and should only have one account, which is the parent account for all suupliers.You should not add or change accounts in this group.
Equity
Your equity accounts are basically divided into distributable and non-distributable equity.The following account groups exist for equity:
Group
Description
Equity (Distributable)
This group is used for equity that you can distribute to the owners.
Equity (Non-distributable)
This group is used for equity that you cannot distribute to the owners, for instance share capital.
Equity (Drawings)
This group is used for drawings accounts for partnerships and closed corporations.
Untaxed Equity
This group is used for equity where there are withheld taxes. Not used in South Africa.
Viewing Account Information
If the account is a parent account its sub-accounts will be listed just below the account details. To view a sub-account, click on its respective link.
Transactions
The transactions tab lists all transactions on an account for a given date-range. If the account is a parent account, the transactions for all sub-accounts will be listed. An option to display the data as T-Accounts is available. Tick the Display as T-Accounts checkbox and click the Submit button.
The account transactions report is very similar to a statement for customer and supplier accounts.
SMARTEDGE Self-Contained Business Units (branches)
Please note that transaction and summaries are displayed for the current self-contained unit, which is displayed in the page heading.
Summary
The summary tab displays the sum of transactions on the account by month.
Documents
The documents tab lists all documents linked to the account.
