Introduction
This topic introduces the key GL accounts used by Q360. Key GL accounts are designated in the setup of each entity in Q360 and will follow your chart of accounts numbering scheme for assets, liabilities, equity, income, and expenses.
For the purpose of this document, overriding an account refers to establishing more specific journal entry posting rules that use an account different than the one defined at the entity level.
Note: Users expecting to do business in multiple currencies should also view Multi-Currency and Foreign Exchange (FX)
From a usage standpoint, key GL accounts fall into the following three types:
- Default Accounts: Used in the absence of more specific overriding accounts
- Designated Accounts: Cannot be overridden but accept manual entries
- Controlled Accounts: Cannot be overridden or written to, reconciled on month end
Default accounts
| Name | Description | Type | Normal Entry |
| Default Sales Rev | Default revenue account on invoice transactions | Income | Credit |
| Default Labor Rev
|
Default revenue account specific to labor | Income | Credit |
| Default Freight Rev
|
Default revenue account specific to freight | Income | Credit |
| Default Service Rev
|
Default service contracts revenue account | Income | Credit |
| Default COGS
|
Default COGS account | Expense | Debit |
| Default Bank
|
Default bank account for cash receipts and payments | Asset | Debit/Credit |
| Default Depreciation
|
Default depreciation expense account to debit when depreciating fixed assets. Can be overridden on a fixed asset level. | Asset | Debit |
| Default Sales Tax Collected
|
Tracks the liability of collected sales tax as well as expense of use tax | Liability | Credit |
| Default Sales Tax Paid
|
Tracks the value of taxes paid on vouchers (vendor invoices) | Expense | Debit |
| Default Labor Contra
|
When recognizing cost of labor, a COGS account will be debited, and this contra account will be credited with the calculated labor cost amount. This account appears below the line on P&L statements and nets out the Q360-posted labor COGS. Useful for analysis against payroll entries and resets every fiscal year. | Expense | Credit |
| Default Labor Burden Contra | Performs a similar function to Labor Contra but takes in the offset of the burden % posting that usually goes alongside with the wage part | Expense | Credit |
Designated accounts
| Name | Description | Type | Normal Entry |
| Pre-sales Cost | Tracks costs associated with opportunity time bills | Expense | Debit |
| Inventory Adjustments | Tracks the value of inventory adjustments | Expense | Debit/Credit |
| Scrap | Tracks value of scrapped inventory | Expense | Debit |
| Inventory Transfer | Used to transfer inventory between branches and/or companies. Typically receives in-and-out entries as a result of a single transfer. | Asset | Debit/Credit |
| Purchase Price Variance (PPV) | When the PO is issued for $X and the vendor invoice comes in for $Y, this account will record the difference. | Expense | Debit |
| Employee Expense Reimbursable | Tracks liability of reimbursable employee expenses until vouchered | Liability | Credit |
| Early Payment Discount | A contra account that tracks early payment discounts realized when paying vendor invoices | Expense | Credit |
| Retained Earnings | Tracks retained earnings. This account is automatically adjusted with net income upon fiscal year-end closing. | Equity | Debit |
Controlled accounts
| Name | Description | Type | Normal Entry |
| Inventory | Tracks valuation of resale inventory | Asset | Debit |
| Fixed Assets | Tracks valuation of fixed assets | Asset | Debit |
| Accumulated Depreciation | A contra asset account that track the accumulated value of depreciating fixed assets. Used for all types of fixed assets. | Asset | Credit |
| Accounts Receivable | Aged AR | Asset | Debit |
| Accounts Payable | Aged AP | Liability | Credit |
| Project Revenue Suspense | On projects, tracks liability of invoiced amounts that are in excess of actual costs until earned. Eventually, when recognizing project revenue after recognizing cost of materials or labor, a proportionate amount of revenue will be earned. | Liability | Credit |
| Project WIP | On projects, tracks value of shipped inventory items ahead of costing them (i.e., posting project COGS). Provides easy check to ensure at month end the GL is $0 ensuring all project COGS/revenue is posted. | Asset | Debit |
| Project Retention | Tracks retained project amounts until invoiced | Asset | Debit |
| Service Contract Revenue Suspense | On service contracts, tracks liability of pre-billed amounts ahead of monthly revenue recognition | Liability | Credit |
| Sales Clearing | On simple orders and service calls, tracks liability of invoicing ahead of equipment or materials shipment | Liability | Credit |
| Inventory Clearing | On simple orders and service calls, tracks value of shipped equipment ahead of invoicing which will post COGS entries | Asset | Debit |
| PO Suspense | Tracks accrued liability when POs are received. When POs are vouchered, it will be transferred to Accounts Payable. | Liability | Credit |
| Pre-Paid Expense | Tracks pre-paid expenses (e.g., insurance) ahead of monthly expense recognition. | Asset | Debit |
| Credit Clearing | Used to facilitate applying a credit invoice to a debit invoice | Asset | Debit |