Posted on: Monday October 19th, 2020

Author: Kilimanjaro Consulting

Having reconciled and balanced accounts is vital to accurate financial reporting. Posting directly to the General Ledger Control Accounts can cause imbalances between sub-ledgers and their respective balance sheets accounts. Introduced in Release 2020.3 MYOB Advanced (powered by Acumatica) now provides the ability to restrict direct postings of transactions such as journal entries to control accounts.

Impacts of restricting control accounts

By enabling the use of the restrictions, control accounts can be set against the following sub-ledgers: Accounts Payable, Accounts Receivable, Fixed Assets, Inventory, Taxes (GST), Purchase Orders (Receipts), Sales Orders (Shipments).

Establishing a control account has two impacts:

  1. Removes the opportunity for manual data entry directly into the account, and reduces error rates.
  2. Prevents using the account as a default for fields related to sub-ledgers. For example, the Sales or Expense accounts set in the Accounts Receivable or Accounts Payable master record.

Two new columns are added to the Chart of accounts Screen to further display and customize the account restrictions.

Alongside each General Ledger account, you can select the related sub-ledger Module, marking it as a control account.  As per the example below, we have selected the “AR” control, to align with the Accounts Receivable General Ledger Account.

The “Allow Manual Entry” checkbox determines if users are able to post entries directly to this account.  Clearing the box will prevent users from creating entries to this account. 

Checking this box will allow users to post transactions, although they will still receive a warning.  It is recommended to uncheck this box once any necessary adjustments have been made.

 

We recommended enabling the use of ledger control accounts to help prevent sub-ledger imbalances.

Optimise MYOB Advanced

Interested in other ways to get more out of MYOB Advanced? We have prepared numerous MYOB Advanced Tips and Tricks to ensure you are making the most out of your system. Learn more about:

If you require assistance in setting this feature up, please contact our Support Team at [email protected] or by calling 1300 857 464.