What are Trading Accounts?
Trading accounts are a way of separating profit and loss items into a separate reporting section. This primarily used for Sales trading and livestock trading, trading accounts are set up on a per entity file basis.
A simple Trading Account example report layout is as follows:
This style of report is generated automatically when creating the report by allocating an account to a trading account. There are three steps in this process
- Create a Trading Account classification - detailed below
- Allocate an Account to a Trading Account classification - detailed below
- Produce a Report with separate Trading Account report settings - detailed in the reporting knowledge article.
Create a Trading Account Classification
To create a new Trading Account navigate to Trading Account, from the File Settings menu, from any screen within the client file as shown below.
You will be directed to a screen where all available. To create a new trading account select + New Trading Account.
Complete the following details and select Add Trading Account in order to add the Trading Account to the client file.
Allocate an Account to a Trading Account Classification
To allocate and account to a trading account navigate to the accounts screen and edit an account by selecting the edit button to the right as shown below:
On the account edit screen, select the required Trading Account from the drop-down list as shown below.
Note: There are two options, A user can either select the default behaviour of the account or select the behaviour of a single account. This is useful for sub-accounts or linked accounts that may have different properties.
After editing the account select the Save Account button, the account has now been allocated to Trading Account for the purpose of reporting.
- A single journal entry can also be allocated to a division instead of the whole account. This is particularly useful for allocated specific amounts to a division with creating duplicate accounts.