21st Century Accounting Help - General Ledger

Configuration Accounts

Each 21st Century Accounting company must contain three special accounts in its Chart of Accounts and they must be assigned in the company configuration to:

Retained earnings. The retained earnings account reflects the sum of income and expenses from inception to the present. When you create or convert a company, an owner's equity account is assigned as the general ledger account to use for retained earnings. The retained earnings account can be any account in the Owner’s Equity account category.
Income transfer. This account reflects the fiscal year-to-date amount of income or loss posted to the owner's equity (retained earnings) account. When you create or convert a company, the transfer account is assigned as the general ledger account to use for income transfer. You can edit the account ID and name in the Chart of Accounts window, if you wish.
Deposit clearing. The system uses the deposit clearing account to accumulate all receipt transactions into a single deposit transaction to the receiving bank account. The clearing account is debited by the amount of each receipt in the batch and credited by the total deposit amount, thus maintaining a zero balance. When you create or convert a company, a cash equivalent asset account is assigned as the general ledger account to use for deposit clearing. You can edit the account ID and name in the Chart of Accounts window, if you wish.

When you create a new company, the accounts are created and assigned for you.

When you convert a company from another computer accounting system, the first retained earnings and income transfer accounts in the converted Chart of Accounts are assigned as the special accounts in 21st Century Accounting. The conversion program creates a deposit clearin account if necessary.

You may want to edit the names or numbers of these created and assigned accounts for suitability.