Theory of operation

This function allows the accountant to create general ledger accounts. A GL account is defined by assigning an account number, an account title and an activity status. The account number assigned by the accountant is merely a key to access the GL Account. It is not used to format the financial statements. When migrating from another accounting system, current numbering scheme can be kept. An account has 3 activity status.

Active

Transactions can be posted to this account.

InActive

This account has been created but has not been activated yet. No transaction can be posted.

DeActivated

This account has been used for awhile but the accountant is phasing out the usage of this account. No transaction can be posted. An account goes from an InActive status, to an Active status, to a DeActivated status. It could also go from DeActivated back to Active.