About account types and classes

Four types of general ledger accounts are supported by the system: assets, liabilities (balance sheet accounts), income, and expenses (income statement accounts).
Assigning accounts to specific types implements accounting logic. We recommend that you make the account types recognisable by the account IDs.

The user-defined account class is used as a property of any general ledger account. Visma.net ERP provides a list of predefined account classes that can be modified if needed. Account classes can be used in reports and inquiries for convenient grouping, sorting, and filtering of the financial information associated with general ledger accounts.
For example: Liability accounts can be divided into the following classes:

• Current liabilities, Supplier ledger
• Current liabilities, Wages payable
• Current liabilities, Interest payable
• Long-term liabilities, Bonds payable
• Long-term liabilities, Mortgage loan payable

You use the Chart of accounts (GL202500) window to populate the chart of accounts.
Account IDs should be set in a logical way and should comply with national standards and any held by the specific industry.
For example: You might use the following account IDs:

• 1000-1999: Assets accounts
• 2000-2999: Liability accounts
• 3000-3999: Income accounts
• 4000-4999: Cost of goods sold accounts
• 5000-6999: Expense accounts
• 7000-7999: Other expenses accounts

The order of accounts in each type of accounts may depend on the industry and differ from country to country.
In some cases, part or all of the expense accounts are listed in alphabetical order.
Set up account numbers in each type of accounts with gaps between them so you can insert new accounts if necessary.

Visma.net ERP supports two special liability general ledger accounts: Year-to-date net income and Retained earnings.
These accounts, which should be specified during General ledger setup in the General ledger preferences (GL102000) window, are system-maintained.