the Account type is a Basic property of each account in SAP Business One. It determines its Function and role in accounting and influences how Transactions posted and Financial reports be created. The Correct definition of the account type is essential in order to Reliable financial reporting and precise accounting to ensure that
1. categories of account types
There are the following main categories in SAP Business One:
- Assets (assets)
- Liabilities (liabilities/debts)
- Equity
- Revenue (income)
- Expenditure (expenses)
- Other (Balance sheet accounts)
2. function and use
- The account type determines which Type of transactions can be posted to the account.
- Revenue accounts recognise revenue.
- Expense accounts are used to post costs and expenses.
- It also defines how the accounts in balance sheet or Profit and loss account (P&L) be displayed.
3. special account types
Reconciliation accounts
- Reconciliation accounts are with Business partners (customers, suppliers, plants) and map their activities in financial reports.
- These accounts are only available for main categories such as Attachments and liabilities and are available in the Chart of accounts green shown.
Cash accounts
- Cash and bank accounts are defined as cash accounts and are used for Payment transactions used.
Confidential accounts
- Confidential accounts can be marked so that only Authorised users have access to their activities.
Cost accounting adjustment accounts
- These accounts are exclusively for Adjustments within the cost accounting and must be labelled accordingly.
4. definition and customisation of the account type
- the Account type is used when creating an account in the chart of accounts defined.
- It can later be used in the Account details can be changed to customise the use of the account.
5 Effects on financial reports
- Depending on the account type, the account balances are displayed in the balance sheet or in the Profit and loss account (P&L) recognised.
- One Correct allocation of the account type is decisive for the Precise presentation of the financial position and the Integrity of financial data.
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