Add a settlement account relationship ledger account

You add a new ledger account for the settlement account relationship. This account is a balance sheet account on which no VAT entries are allowed. You can choose to use one ledger account (which will have a balance of 0.00 after the consolidation) or two ledger accounts (which together will have a balance of 0.00 after consolidation).

You can use a separate ledger account for each administration, however one ledger account is sufficient to maintain the settlement account. Bear in mind that, in a situation with multiple administrations within one environment, you use one and the same chart of accounts. When the two administrations are consolidated, the balance of this ledger account will be zero.

To add a settlement account relationship ledger account:

1. Go to: Financial / Ledger / Ledger account.
2. Click on: New.
3. Enter a value in Account number.

   The number of the account must be between the limits you have set in the Administration settings.

4. Enter a search name you can use later on to facilitate entries on this account.
5. Enter the description.
6. Select the Block manual entries check box if you are only going to use the ledger accounts for entries that are generated within other Profit components.
7. In Type of account, select Assets.
8. In Kind of account, select Other. The other types are related to VAT/ICP accounts.
9. Complete the remaining fields.
10. Click on: Next.
11. Deselect the Allow VAT check box if adding a VAT entry is not allowed when posting an entry to this account.

    Deselect this check box if a fiscal unit is involved in the settlement account relationship. In the case of mutual entries between administrations that are not part of a fiscal unit, the VAT should be charged to the administration in which the invoice is entered.

12. Click on: Next.
13. Click on Next several times and then click on Finish to complete the wizard.