Accounting configuration: German legislation

Before carrying out accounting operations, the various accounting elements should be configured. In Accounting configuration, you can set a default account length as well as the default third party, sales and tax accounts. This configuration process formalises the accounts in use and sets the methods for encoding different operations, such as purchases, sales, and taxes.

To configure the accounting elements:

1. Access the Accounting configuration.

   Settings > Accounting – Accounting settings

2. Select the default Customer account and Supplier account.
   The default ledger account for customers or suppliers is automatically assigned when creating a new third party of this type.
3. Select the default Sales account.
   The default ledger account for sales is automatically used in journal entries that are created when you post an invoice.
4. Select the default Purchase account.
   This account will be proposed when creating a supplier.
5. Select the default Input tax account and Output tax account.
   
   • If you have used the official chart of accounts, this will automatically populate the correct input and output tax accounts for the tax rates.
   • If you have used your own chart of accounts then Sage Active will use the input and output tax accounts selected in Accounting configuration for the tax rates.
6. If necessary, enter a Bank account and Cash account for the creation of the default bank and cash account cards in Bank accounts and cash.
   These values are filled in automatically if you use an official chart of accounts.
7. Choose whether to automatically match entries with the oldest open items.
   Switching this option to ON will automatically select the oldest open item when matching financial journal entries.
8. Save the configuration.