An account type provides a way to define the purpose of an account code.

The type codes are as follows.

• A-Asset

• C-Capital

• E-Expense

• H-Heading

• I-Income

• L-Liability

• M-Memo

• P-Profit/Loss

Heading accounts, type H, may be used to identify a group of following accounts on lists and reports. Heading accounts may not be used for posting.

Memo accounts, type M, are used to record amounts in a manner different from other account types; for example, a memo account may be used to record numbers, such as hours or tons, to use on a financial statement. These amounts are not included in any standard report totals.

Account type P is used to store retained earnings from the previous year. The profit/loss amount for the year is automatically calculated by the system using expense and income accounts (types E and I) when running the GL Beginning Balance Update and the difference is added to this account for the next years beginning balance. This account balance is calculated by the system and, typically, you will never post anything to it.

The monthly profit/loss amount will be calculated on your financial statement by adding the income and expense amounts.