Chart of Accounts

This help topic is applicable to the following TireMaster applications:

TireMaster Point of Sale

TireMaster Plus

TireMaster Corporate

The chart of accounts lists all of the accounts in your general ledger. Access to the chart of accounts varies, depending on your TireMaster system.

If you're running TireMaster Point of Sale, Closedclick here.The chart of accounts is accessible on a limited basis. It typically appears when you need to assign GL account numbers to codes. In this scenario, assign the preset account listed in the instructions for the task you're performing. If you're running the QuickBooks integration, you might need to add, update, or remove accounts.

If you're running TireMaster Plus, Closedclick here.Depending on how this screen is accessed, you can do the following: add, update, and delete accounts; select accounts to assign to codes or system control settings; and select an account whose activity you want to research.

If you're running TireMaster Corporate, Closedclick here. Depending on how this screen is accessed, you can do the following: add, update, and delete accounts; select accounts to assign to codes or system control settings; and select an account whose activity you want to research.

In TireMaster, general ledger account numbers are made up of five different parts. Each part of the account number provides different information and defines how to post transactions to the general ledger.

Note: You can control the amount of detail on the income statement depending on whether you show or hide the minor account information.

The chart of accounts in TireMaster uses five types of accounts. The code (shown in the Type column on the Chart of Accounts screen) defines the account type ().

Code

Account Type

Definition

A

Asset

The historical value of things you own.

L

Liability

The debts you owe to individuals, businesses, or organizations.

R

Owner’s Equity

The difference between the total assets and total liabilities of your business.

I

Income

An increase in equity that comes from the sale of goods and services.

E

Expense

A decrease in equity that comes from the cost of materials and services used to produce income.

Depending on the transaction that’s performed, the balance of an account increases or decreases. Some accounts are known as debit accounts, and others are known as credit accounts. Debits are used to record an increase in asset and expense accounts, while credits are used to record an increase in liability, owner’s equity, and income accounts.

Account Type

Debit

Credit

Asset

+

-

Liability

-

+

Owner’s Equity

-

+

Income

-

+

Expense

+

-

For your general ledger to be in balance, the amount in the debit accounts on the left side must equal the amount in the credit accounts on the right side ().

New TireMaster systems include a standard chart of accounts that can be used as is or customized.

Note: If the chart of accounts is updated, you might also need to update System Control settings that define defaults for how transactions post to the general ledger. For more information, see Set Default General Ledger Accounts. General ledger controls are available in TireMaster Plus and TireMaster Corporate.

An asset is something that you own that has a dollar value. Asset accounts include cash, accounts receivable, and inventory accounts.

To add an asset account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Click Add. The GL Account Edit screen appears.
3. Type the major account number and primary description for the new account.
4. Type the minor account number and secondary description for the new account.
Note: If the minor account number is 0, leave the description blank.
5. Under Type, select Asset.
6. If the new account is for inventoriable items, select the Inventory Items check box. Otherwise, leave it blank. For more information, see Add an Inventory Item.
7. Make sure the Active check box is selected.
8. To save the new account, click OK.

Liabilities are debts that you owe. Liabilities include your vendor accounts, loans, and taxes.

To add a liability account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Click Add. The GL Account Edit screen opens.
3. Type the major account number and primary description for the new account.
4. Type the minor account number and secondary description for the new account.
Note: If the minor account number is 0, leave the description blank.
5. Under Type, select Liability.
6. Make sure the Active check box is selected.
7. To save the new account, click OK.

Equity is the difference between the total assets and total liabilities of a business. Equity accounts include your capital and retained earnings accounts.

To add an equity account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Click Add. The GL Account Edit screen opens.
3. Type the major account number and primary description for the new account.
4. Type the minor account number and secondary description for the new account.
Note: If the minor account number is 0, leave the description blank.
5. Under Type, select Ret. Earn.
6. Make sure the Active check box is selected.
7. To save the new account, click OK.

Income is any revenue that comes from the sale of goods and services or from other sources. Your income accounts are mainly sales accounts.

To add an income account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Click Add. The GL Account Edit screen opens.
3. Type the major account number and primary description for the new account.
4. Type the minor account number and secondary description for the new account.
Note: If the minor account number is 0, leave the description blank.
5. Under Type, select Income.
6. To define which section of the income statement will include information about the new account, select one of the following:

Administrative

Normal Income/Expense

Other Income/Expense

7. Make sure the Active check box selected.
8. To save the new account, click OK.

An expense is a decrease in equity that comes from the cost of materials and services used to produce income. Examples of expenses are the cost of inventory, loan fees, and insurance.

To add an expense account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Click Add. The GL Account Edit screen opens.
3. Type the major account number and primary description for the new account.
4. Type the minor account number and secondary description for the new account.
Note: If the minor account number is 0, leave the description blank.
5. Under Type, select Expense.
6. To define which section of the income statement will include information about the new account, select one of the following:

Administrative

Normal Income/Expense

Other Income/Expense

7. Make sure the Active check box selected.
8. To save the new account, click OK.

Setting default accounts in System Controls ensures that many routine transactions consistently post to the general ledger. In new TireMaster Plus and TireMaster Corporate systems, general ledger account numbers are already assigned to the following controls:

Default Account - Cash

Default Account - Cash Over/Short

Default Account - FET Correction

Default Account - Finance Charge Income

Default Account - Freight

Default Account - Inventory Correction

Default Account - PO Sales Tax Expense

Default Account - Sales Tax

Default Account - Sales Tax Rounding

Default Account - Year-End Profit Loss

You can leave the default settings as is or assign different accounts to the controls.

To set a default general ledger account

1. Select Setup > System Controls. The System Controls screen opens.
2. Click the General Ledger tab.
3. Select the control for the default account that you want to set and press Enter. The Chart of Accounts screen opens.
4. Select an account, and click OK.
5. To set additional controls for default accounts, repeat steps 3 and 4.
6. Close the System Controls screen.

If your chart of accounts includes rarely-used and unused accounts, you can make it easier to manage by deleting those accounts or making them inactive.

If you no longer use a general ledger account, you can make it inactivate. By making an account inactive, you can exclude it from the Chart of Accounts screen.

Note: Before you make a GL account inactive, make sure the account isn’t assigned to a GL code or a customer or vendor type (in TireMaster Plus and TireMaster Corporate). Otherwise, TireMaster will stop you from posting various entries.

To make a GL account inactive

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Select the account you want to make inactive, and click Edit. The GL Account Edit screen opens.
3. Clear the Active check box, and click OK. The Chart of Accounts screen opens.
Note: If the Active Only check box is selected on the Chart of Accounts screen, the inactivate account won’t be listed.
4. Close the Chart of Accounts screen.

If you’ve never used a general ledger account, you can delete it from the Chart of Accounts.

Note: If an account can’t be deleted, you can make it inactive. For more information, see Make a GL Account Inactive .

To delete a general ledger account

1. Select General Ledger > Chart of Accounts. The Chart of Accounts opens.
2. Select the account you want to remove, and click Delete. A confirmation message appears.
3. Click Yes.