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).
- 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).
- On the Chart of Accounts window, click the Categories/Sub-Categories tab.
- Click Add and type in the Code for the first category or sub-category (e.g.—A).
- Press the Tab key and type the category or sub-category title in the Description field (e.g.—Cash Accounts)
- Make sure the right Type (Categoies or Sub-Categories) is selected by using the drop list at the top of the window.
- Press Return/Enter or click Save.
- 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.)
