At the basic level, we can set up the Debtor Control Accounts at the function in:
Housekeeping, Setup, General Setup:
Debtor Control Groups
From 3000/000 (this is the default setting)
To 3000/000
The GL account maintenance should have the account 3000/000 Trade Debtors as current assets in the accounting ledger.
This is called the Parent Account or Main Account/Ledger. Any combination with the code 3000/*** will be the Child Account or Subsidiary Account.
For example:
3000/A01 Apple Software Company PTE LTD
3000/B01 Big Apple Company PTE LTD
3000/C01 China company SDN BHD
However, these accounts can only be added in Debtor File Maintenance, as this is a special account for debtor or customer accounts.
If we are to assign to Debtor Control Groups as:
From 300A/000
To 301Z/000
What does this mean?
The Chart of Accounts will then assign any GL Code created from 300a-Z, or 3001-9 as Debtor Accounts to any combination code 301a-Z or 3010-9 as Debtor accounts.
Thus, if you create a 3010/001 CIMB bank Account as a current asset in your ledger, it will be included in the Debtor Maintenance Group for debtor accounts.
You should then change the account number to 3020/001, 3021/001, or any number after 3010 as a current asset non-debtor account.
What is the effect of maintaining the Bank account as a non-debtor account?
You will be able to generate a balance sheet report without grouping the Bank accounts for debtor maintenance.
You will be able to call out the listing in the payments and receipts function for a list of transactions that were in your AR (accounts receivable) and AP (accounts payable) for quick and easy access.
Similarly, you can apply this in Creditor Maintenance:
Housekeeping, Setup, General Setup: Creditor Control Groups
From 4000/000 (this is the default Setting)
To 4000/000
Changing the range of Creditor groups can also affect how reports and functions of other account types in the system are.
How to change ledger account codes?
Function to change can be found in:
Housekeeping, Administrative Tools, Tools, 1. Change Account No, Apply
Set as above and click OK, and click OK again.
Reason is: The 3010/001 is set as the Debtor Control Group.
To change the Bank Parent account:
Now that we have 3021/001 as a child account, you can assign a parent account 3021/000 to it. This will indicate that any new child account under the main account code 3021/000 will be collected or calculated into the main current asset ledger 3021/000.
Example:
You can have 3021/001 CIMB bank Account 100,000.00
You can have 3021/M02 Maybank Account 100.00
You can have 3021/HL3 Hong Leong bank Account 50.00
You can have 3021/P04 PBB bank Account 65.00
All the ledger balances will be compiled into the main account 3021/000. Then we can assign the name of the Main Ledger as Bank and Cash balances. This Main account will also be shown in your Balance Sheet report as the current asset: Bank and Cash balances 300,215.00