(B) Define Categories and Sub-Categories

Categories and Sub-Categories are for grouping and totaling on Accounting reports. As a rule of thumb, all accounts should have a category designation, but not all accounts will have sub-categories. For example, if you have an account for your phone bill and one for your water bill and one for electricity, you can create a category called Utilities and group these three accounts to get a total called Utilities. Category and sub-category codes can be alphabetical or numeric and up to 4 characters in length. The code will determine the order in which they print on reports (i.e., category code A will print before code B).

  1. Under the Accounting menu, select Ledger and under Ledger select Chart of Accounts. Or, click on the 1. Set up a Chart of Accounts button on the Welcome to Accounting window. (The Chart of Accounts may also be accessed by clicking the Chart of Accounts button on the Accounting Setup window).
  2. On the Chart of Accounts window, click the Categories/Sub-Categories tab.
  3.  Categories/Sub-Categories pane of the Chart of Accounts window

  4. Click Add and type in the Code for the first category or sub-category (e.g.—A).
  5. Press the Tab key and type the category or sub-category title in the Description field (e.g.—Cash Accounts)
  6. Make sure the right Type (Categoies or Sub-Categories) is selected by using the drop list at the top of the window.
  7. Press Return/Enter or click Save.
  8. Repeat steps 3–6 until all desired Categories and Sub-Categories are entered. (More Categories and/or Sub-Categories can be added later in this same manner.)