Creating a Liability Account

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

To create a liability account

1. On the General Ledger menu, select Chart of Accounts. The Chart of Account screen appears.

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. In the Type area, select Liability.

6. Make sure the Active check box is selected.

7. Click OK.