Accounting configuration: Spanish 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 settings.

   Settings > Accounting – Accounting settings

2. Enter the Default account length.
   The default account length refers to the number of digits used for ledger accounts at the subaccount level. The number of digits specified when creating a subaccount needs to match the value entered in the Default account length field.
3. Select the Annual accounts model.
   You can select from two different options under the model: Standard and For SMEs (small and medium enterprises), which will inform the default structure of the balance sheet for your business.
4. 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.
5. Verify or select the default Sales account for domestic customers, intracommunity customers and non-EU customers.
   The default ledger account for sales is automatically used in journal entries that are created when you post an invoice.
6. Verify or select the default Purchase account.
   This account will be proposed when creating a supplier.
7. 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.
8. 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.
9. 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.
10. Save the configuration.