Structure a ledger using account levels
You structure the extended trial balance, the profit and loss account and the operating overviews using levels and sub-levels.Profit Calculates a (sub)total for all levels. As a result the trial balance and the extended trial balance will be summed at strategic points.
When you set up a structure, you start with the main levels. Level 9 is only used to produce the total sum for the entire ledger. This account level is only added one time with the highest possible ledger account number (generally 9999).
After this you further refine the ledger's main levels (for example the balance totals) using intermediate levels (for example 'Total liquid assets') into lower levels ('Total cash' and 'Total banks').
The account levels are displayed on the overviews following the ledger account whose number is lower than or equal to the account level’s number. The amounts for all preceding ledger accounts are accumulated at an account level. The amounts are summed ‘back up’ to a preceding account level of the same or a higher level.
Example: of a level structure
- Code level 9: Total ledger
- Code level 8: Net result and Balance total
- Code level 7: Gross result
- Code level 6: Category totals
- Code level 1 - 5: Classification within a category