In some in instances, users may have created a Chart of Accounts with an incorrectly “placed” number. Incorrectly placed refers to a situation in which the account number has a Description Summary Account (called a Parent Account in Versions 1133 and prior) that is “lower” than a “higher” account’s Description Summary Account.
These errors can have slightly different effects.
In one example, Accounts 1510 and 1520 have 1000 as their Description Summary Accounts, but Accounts 1550 through 1710 have 1500 as their Description Summary Account.
When the system first updates 1133 data, the following message is received.
However, when Recover is run on the data, the following message is received:
The Chart of Accounts is Saved by clicking on the Save button in the List, Chart of Accounts screen.
However, to place the errant accounts into their proper positions, their Description Summary Accounts must be changed. Moreover, they must be changed in the proper order, or the process will not succeed.
The user should select the Description Summary Account for the first of the accounts in error. It must be the “lower” numbered account. In the example below, the first account to be corrected is numbered 1510.
Its Description Summary Account should be changed (in this example) to 1500. Then save the change.
Similarly, the Description Summary Account of Account 1520 should also be 1500. Again, Save the change.
In this example, Account 1510, Inventory, should not be under Account 1500, Fixed Assets. It should instead be under 1010 Current Assets.
The technique is to add a new account 1410, Inventory first, setting it’s Description Summary Account as 1010 Current Assets. Then, any entries in 1510 should be moved to the new 1410 via journal entries. Finally. Account 1510 should be checked as Inactive, and its name changed to Inactive.
Another example of a problem can simply involve the misplacement of an account. In those cases, only the Description Summary Account should be changed. However, is it vital that the misplaced accounts be addressed in sequence, starting with the lowest account number.