MAINTENANCE MENU > Chart of Accounts Maintenance > 4. Set Default Account Numbers

The Jewelry Shopkeeper updates the values and balances in the chart of accounts from its detail files such as the sales files, check book files, inventory files, accounts payable files, accounts receivable files, general journal files, etc. In order for the accounts to be updated correctly you must specify the account numbers to which the inventory and other figures have to be posted by selecting the Chart of Accounts Defaults option. That is, it is not enough to just have an account for Inventory, you must also tell the program to post inventory to that account.

Every default entry must have an associated account in the chart of accounts otherwise the program will be unable to update the chart of accounts when a financial report is run.

The Jewelry Shopkeeper comes shipped with the defaults already filled in so you may not need to use this option. If you have changed the chart of accounts, you may need to update these defaults.

The first screen re-iterates the organization of the chart of accounts:

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║ You will be presented with one line descriptions of automatically ║

║ calculated totals. These totals are crucial to the month-end closing ║

║ procedure and the financial reports. A Chart of Accounts Number MUST BE ║

║ assigned for each of these calculated totals so that they may be reported ║

║ in an organized report. ║

║ ║

║ Chart of Account Numbers are assigned in the following manner: ║

║ ║

║ ASSET ACCOUNTS (100-199) INCOME ACCOUNTS (400-499) ║

║ Cash in Bank Sales Revenue ║

║ Accounts Receivable Finance Charge Revenue ║

║ Inventory Sales of Assets ║

║ ║

║ LIABILITY ACCOUNTS (200-299) COST OF SALES ACCOUNTS (500-599) ║

║ Accounts Payable Cost of Goods Sold ║

║ Payroll Tax Payable Freight Expense ║

║ Sales Tax Payable Sales Commissions ║

║ ║

║ EQUITY ACCOUNTS (300-399) OPERATING EXPENSE ACCOUNTS (600-999) ║

║ Retained Earnings Utilities ║

║ Owner Capital Advertising ║

║ Trademarks Rent ║

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Next you are prompted to type the chart of accounts number for several asset-type accounts. The Jewelry Shopkeeper maintains up to four bank accounts and the balances of each are posted to the chart of account numbers you specify under CASH IN BANK #1, #2, #3 and #4. The value of all items in the inventory file are calculated and split between the COST VALUE OF INVENTORY and the COST VALUE OF LAYAWAYS and posted to the account numbers you specify below.

The range of accounts for COST VALUE OF NON-ITEMIZED INVENTORY are accounts for any inventory that you don’t enter into the inventory file. This might include findings, batteries, ring boxes, shopping bags or any items that you don’t want to post to the inventory file. These accounts are important and you should update them once a month to let the Jewelry Shopkeeper know what your total inventory level is so that the Cost of Goods in the Profit & Loss report can be calculated. You would need to create account numbers for any Non-Itemized inventory categories you want to maintain and update the values in them from the Enter/Edit Chart of Accounts menu choice.

If you have accounts receivable, then the values of each of the aging bins are posted to the numbers you enter below.

Any entry in the chart of accounts with an account number above the LONG TERM ASSET ACCOUNTS cut-off point is entered into the Long Term Assets section of the Balance Sheet to record such assets as real estate or heavy equipment.

║ Each line describes a total that will be automatically calculated for the ║

║ month-end closing procedure and financial reports. ║

║ You must assign a Chart of Accounts Number to each of these lines or the ║

║ totals cannot be calculated. Each number MUST be unique. ║

║ ║

║ These are ASSET ACCOUNTS. They must be between 100 and 199. ║

║ ║

║ CASH IN BANK # 1: 101 ║

║ CASH IN BANK # 2: 102 ║

║ CASH IN BANK # 3: 103 ║

║ CASH IN BANK # 4: 104 ║

║ COST VALUE OF INVENTORY not including layaways: 131 ║

║ COST VALUE OF LAYAWAYS: 132 ║

║ Range for COST VALUE of NON-ITEMIZED INVENTORY: 135 thru 139 ║

║ Total of accounts receivable CURRENT aging bin: 121 ║

║ Total of accounts receivable 30 DAYS aging bin: 122 ║

║ Total of accounts receivable 60 DAYS aging bin: 123 ║

║ Total of accounts receivable 90 DAYS aging bin: 124 ║

║ Total of accounts receivable OVER 90 DAYS aging bin: 125 ║

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║ LONG TERM ASSET ACCOUNTS: 190 ║

║ (all accounts after this number are for LONG TERM ASSETS ║

Next you are prompted to type the chart of accounts number for several liability-type accounts. Any sales tax from the sales files is posted to the Accumulated SALES TAX account. When you write a check to pay off sales tax, you should also use this account so your sales tax payable will be reduced.

All unused gift certificates and credit slips are summed and the result is a liability to you. The result is posted to the account you specify under GIFT CERTIFICATE & CREDIT SLIP LIABILITY below.

The payments received on layaways and special orders that have not yet been picked up (have not been finalized) are summed and posted to the account you enter below.

Any commissions due to sales clerks that have not yet been paid are summed and posted to the account you specify below. To indicate that sales commissions have been paid see the Commission Reports section of the program.

All invoices in the accounts payable section are scanned and the amounts not yet paid off are summed and posted to the account specified below. To indicate that a payable has been paid, choose Make a Payment to a Vendor, Make Payments to Vendors, or Enter/Change Invoices Payable from the Accounts Payables menu.

Any entry in the chart of accounts with an account number above the LONG TERM LIABILITY ACCOUNTS cut-off point is entered into the Long Term Liabilities section of the Balance sheet to record such liabilities as five-year notes payable or mortgages.

║ Each line describes a total that will be automatically calculated for the ║

║ month-end closing procedure and financial reports. ║

║ You must assign a Chart of Accounts Number to each of these lines or the ║

║ totals cannot be calculated. Each number MUST be unique. ║

║ ║

║ These are LIABILITY ACCOUNTS. They must be between 200 and 299. ║

║ ║

║ Accumulated SALES TAX payable: 201 ║

║ GIFT CERTIFICATE & CREDIT SLIP LIABILITY: 211 ║

║ LAYAWAY LIABILITY (monies received on current layaways): 212 ║

║ UNPAID SALES COMMISSIONS: 204 ║

║ Accumulated ACCOUNTS PAYABLE INVOICES: 202 ║

║ ║

║ LONG TERM LIABILITY ACCOUNTS: 275 ║

║ (all accounts after this number are for LONG TERM LIABILITY) ║

Next you are prompted to type the chart of accounts number for several revenue-type accounts. When you run a Profit & Loss report the information from the sales files is broken down into the different categories below. The results are posted to the account numbers entered into the following screen.

║ Each line describes a total that will be automatically calculated for the ║

║ month-end closing procedure and financial reports. ║

║ You must assign a Chart of Accounts Number to each of these lines or the ║

║ totals cannot be calculated. Each number MUST be unique. ║

║ ║

║ These are REVENUE ACCOUNTS. They must be between 400 and 499. ║

║ ║

║ REVENUE RECEIVED ON SALES this period: 401 ║

║ REVENUE RECEIVED ON REPAIRS this period: 402 ║

║ DISCOUNTS on sales this period: 403 ║

║ FINANCE CHARGES applied on accounts receivable for this period: 408 ║

║ PAST DUE CHARGES applied on accounts receivable for this period: 409 ║