Microsoft KB Archive/899697

= How to use journal entries to post to the system accounts in Accounting Professional, Accounting Express, or in Small Business Accounting 2006 =

Article ID: 899697

Article Last Modified on 10/24/2007

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APPLIES TO


 * Microsoft Office Accounting Professional 2008
 * Microsoft Office Accounting Express 2008
 * Microsoft Office Accounting Professional 2007
 * Microsoft Office Accounting Express 2007
 * Microsoft Office Small Business Accounting 2006
 * Microsoft Office Small Business Management Edition 2006

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INTRODUCTION
This article describes the system accounts in the following products:
 * Microsoft Office Accounting Express
 * Microsoft Office Accounting Professional
 * Microsoft Office Small Business Accounting 2006

This article also describes how to use journal entries to post to the system accounts.



MORE INFORMATION
To access the system accounts, click Preferences on the Company menu, and then click the System Accounts tab. There are twelve types of system accounts to which you can directly post. When you enter a journal entry, you can select the account names that are associated with the following account types:
 * Opening Balances
 * Cash Discount Given
 * Cash Discount Taken
 * Payroll Liability
 * Undeposited Funds
 * Bank Charges
 * Retained Earnings
 * Pending Item Receipts
 * Job Resell
 * Write Off
 * Employee Expense
 * Default Cash

Note You can directly post the following three types of system account only if these accounts apply to Accounting Express and to Accounting Professional:
 * Payroll Liability
 * Employee Expense
 * Default Cash

There are three types of system accounts to which you cannot directly post. When you enter a journal entry, you cannot select the account names that are associated with the following account types:
 * Accounts Receivable
 * Accounts Payable
 * Sales Tax Payable

For information about how to post to these account types, see the sections later in this article.

Post directly to system accounts
For the nine system account types to which you can directly post, the account name that is associated with each account type is available in the Account Name drop-down box of the Journal Entry dialog box. The following example shows how to post to the Bank Charges system account. The following example uses a journal entry and the product-based sample company.
 * 1) On the Company menu, click New Journal Entry.
 * 2) Click the arrow under the Type column, and then click Financial Account.
 * 3) Click the arrow under the Account column, and then click Bank Charges.

Note To view the accounts that are associated with each system account type, click Preferences on the Company menu, and then click the System Accounts tab.


 * 1) Type $10 in the Debit column.
 * 2) Click the arrow under the Type column, and then Financial Account.
 * 3) Click the arrow under the Account column, and then click Checking.
 * 4) Type $10 in the Credit column.
 * 5) Click Save and Close. This action will debit the Bank Charges account and credit the Checking account.

Use a journal entry to post to the Accounts Receivable account
To post to the Accounts Receivable account, you must select a specific customer so that the system can track the customer’s balance. The following example shows how to indirectly post to the Accounts Receivable account. In this example, you use the product-based sample company to record a customer sale of $50.
 * 1) On the Company menu, click New Journal Entry.
 * 2) Click the arrow under the Type column, and then click Customer.
 * 3) Click the arrow under the Account column, and then click Aaron Fitz Electrical.
 * 4) Type $50 in the Debit column.
 * 5) On the next line, click the arrow under the Type column, and then click Financial Account.
 * 6) Click the arrow under the Account column, and then click Sales.
 * 7) In the Credit column, type $50.
 * 8) Click Save and Close. This action will debit the Accounts Receivable account and credit the Sales account.

Use a journal entry to post to the Accounts Payable account
To post to the Accounts Payable account, a specific vendor must be selected so that the system can track the vendor’s balance. The following example shows how to indirectly post to the Accounts Payable account. In this example, you use the product-based sample company to record a vendor bill of $50.
 * 1) Select New Journal Entry on the Company menu.
 * 2) Click the arrow under the Type column, and then click Vendor.
 * 3) Click the arrow under the Account column, and then click Ace Travel.
 * 4) Type $50 in the Credit column.
 * 5) On the next line, click the arrow under the Type column, and then click Financial Account.
 * 6) Click the arrow under the Account column, and then click Travel Expenses.
 * 7) Type $50 in the Debit column.
 * 8) Click Save and Close. This action will credit the Accounts Payable account and debit the Travel Expenses account.

Use a journal entry to post to the Sales Tax Payable account
The following example shows how to post indirectly to the Sales Tax Payable account. In this example, you record a customer sale of $106, where $6 is tax and $100 is sales.
 * 1) On the Company menu, click New Journal Entry.
 * 2) Click the arrow under the Type column, and then click Customer.
 * 3) Click the arrow under the Account column, and then click Aaron Fitz Electrical.
 * 4) In the Debit column, type $106.
 * 5) On the next line, click the arrow under the Type column, and then click Financial Account.
 * 6) Click the arrow under the Account column, and then click Sales.
 * 7) In the Credit column, type $100.
 * 8) On the next line, click the arrow under the Type column, and then click Tax Code.
 * 9) Click the arrow under the Account column, and then click ND State Sales Tax.
 * 10) In the Credit column, type $6.
 * 11) Click Save and Close. This action will debit the Accounts Receivable account. Additionally, this action will credit the Sales account and the Sales Tax Payable account.

For more information about system accounts, see the &quot;Manage System Accounts dialog box: options and information&quot; topic in Help for Accounting Professional, for Accounting Express, or for Small Business Accounting.

Additional query words: info in SBA MOA

Keywords: kbinfo kbmbsmigrate KB899697

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