GL Accounts Feature in Profitz

Description: GL Accounts are the foundation of your financial system in Profitz. Also known as your Chart of Accounts, they define how every transaction is recorded and reported. This feature allows you to create, manage, and structure your accounts for accurate Balance Sheet and Profit & Loss reporting.

Purpose and Benefits

GL Accounts categorise financial activity across your business. By assigning each account a code, description, division group, and balance type, you ensure consistent financial reporting. Additional controls like End of Year Clear and Posting Barred help maintain data integrity and compliance.

How to Access

Navigate to General Ledger › GL Accounts

Instructions for Use

Add a New GL Account

1. Navigate to General Ledger › GL Accounts
2. Click Add
3. Complete the following fields:

Field	Description
Code	A unique identifier for the account. Use a numeric or alphanumeric format. Example: 020
Description	A clear label for the account. Example: Motor Vehicles
Chart of Accounts Code	Select a Division Group that categorises the account. Example: BS - Balance Sheet To manage Division Groups, go to Setup › Codes Setup › Division Group
Account Type	Choose the account’s classification (e.g., Asset, Liability, Income, Expense) from the dropdown
Posting Barred	Tick this box to prevent any transactions from being posted to this account
End of Year Clear?	Tick this box for all Profit & Loss accounts to ensure balances are cleared at year-end. Leave unticked for Balance Sheet accounts

4. Click Save to create the account

Edit an Existing GL Account

1. Navigate to General Ledger › GL Accounts
2. Double-click the account code you want to edit, or select it and click Edit
3. Update the necessary fields
4. Click Save

Delete a GL Account

1. Navigate to General Ledger › GL Accounts
2. Select the account code you want to remove
3. Click Delete
4. Confirm the deletion when prompted

⚠️ You cannot delete an account that has been used in transactions.

Import GL Accounts

1. Navigate to General Ledger › GL Accounts
2. Click Import
3. Select your import file and follow the prompts

For file format requirements, see: [Importing Data Files]

Best Practices

• Use consistent naming conventions for account codes and descriptions
• Always tick End of Year Clear for Profit & Loss accounts to ensure correct year-end rollover
• Use Posting Barred to disable accounts that should no longer be used but must be retained for historical reporting

Limitations

• Account codes must be unique
• You cannot delete an account that has been used in any transaction
• Segment structures must be predefined in Setup › Company Setup › Code Structure

FAQ

What is the “End of Year Clear” setting for? This setting ensures that balances in Profit & Loss accounts are cleared at year-end. It should not be used for Balance Sheet accounts.

How do I create a hierarchical Chart of Accounts? Use code segments to define levels. For example:

• Segment 1: 500 = Sales
• Segment 2: 50050 = Sales - Small Works Set up segments in Setup › Company Setup › Code Structure

Related articles:

• [GL Division in Profitz]
• [End of Month]