Types of GL Accounts
There are several types of GL account in the business unit.
AR (Accounts Receivable)
Accounts receivable funds are funds your organization should receive as a result of delivery on a product or service rendered.
Asset
An asset account is cash or other resources owned and controlled by the business.
Note: This type of account could be used for a due to/due from account.
Cash
A cash account records all transactions related to a business' cash. A cash account is an asset account and records debits and credits for cash transactions. For every transaction, there is a corresponding debit and credit entry to ensure the books stay balanced.
Deferred
A deferred income account is a type of liability account and represents income received but not yet earned. In re:Members AMS, deferred accounts are selected on the product price record, and deferred revenue is recognized in the Fiscal Period.
Equity
Equity accounts represent the remaining value of an owner's interest in the business after subtracting all liabilities from the total assets.
Note: This account type is not typically used in re:Members AMS.
Expense
Expense accounts record expenses incurred as part of daily operations. E.g., salaries, fees, insurance, travel, or publishing expenses.
Liability
Liability accounts record amounts for products or services provided on credit. The liability account is credited when a paid invoice is canceled.
There are several instances where a liability account may be used in re:Members AMS, such as when assigning a deferred revenue account on a price or when choosing a refund payable account when doing refunds.
Generally, the liability account starts with a "2," for example "22000." If no liability account is set up in your non- re:Members AMS accounting system, create one and add it to the re:Members AMS Business Unit > Setup tab > GL Accounts. The account can then be used in setting up prices.
Use Case
If you have an invoice of $100, apply a payment of $90, then cancel the invoice, the system makes the following transactions:
| From the Invoice | ||
| AR Account | $100 | Debit |
| Revenue Account | ($100) | Credit |
| From the Payment | ||
| Cash Account | $90 | Debit |
| AR Account | ($90) | Credit |
| From the Cancellation | ||
| Revenue Account | $100 | Debit |
| Liability Account | ($90) | Credit |
| AR Account | ($10) | Credit |
A record is created for the $90 credit, which appears on your organization's balance sheet as a liability, meaning that you are liable to refund the money to the customer.
Revenue
The revenue account is used to track the inflow of funds over an accounting period.
Write Off
The write off account is used to clear uncollectable balances on invoices without canceling the invoice.
You may have a write off account for events and another for dues. If no write off account is set up in your non- re:Members AMS accounting system, create one and add it to the re:Members AMS Business Unit > Setup tab > GL Accounts. The account can then be used in setting up prices. See also: Setting up General Ledger Accounts.
Use Case
If you have an invoice of $100, apply a payment of $90, then write off the invoice, the system makes the following transactions.
| From the Invoice | ||
| AR Account | $100 | Debit |
| Revenue Account | ($100) | Credit |
| From the Payment | ||
| Cash Account | $90 | Debit |
| AR Account | ($90) | Credit |
| From the Cancellation | ||
| AR Account | ($10) | Credit |
| Write Off Account | $10 | Debit |