Changes in chart of account CAGB
I am working with a client who wants to use Chart of account GB. However some requirements doesn’t matches with CAGB therefore they want to make changes in CAGB.
Their Requirements are quite simple. They want to change the description of certain GL account. i.e Standard CAGB
G/L Account Type
Account Type Description
Sales Revenue - Domestic - Product No.1
Revenues or gains
They want me to change “Account description” to “Artificial Turf Income”.
So in future GL account 400000 will be Artificial Turf Income
My question for you all is that why I should use GL account 400000 for Artificial Turf Income
Why shouldn’t I use any other GL account other than 400000? I know you can use any GL account but thinking out loud what impact it will have if I use for example GL account 700150. Any effects on hierarchy level?.
Marlene Katzschner replied
If you are allowed to rename the standard account "40000 - Sales Revenue - Domestic - Product No.1" to a company specific Account Name you should clarify with the accounting department. They are responsible for there P/L statement.
If account 700150 works as well you need to figure out with respect to the G/L Account Type and the process you want to run. Here also the Accountant should be your contact for this discussion.
PS: Sorry for the unspecific reply, but this is a legal topic for Canada and business consulting, nothing related to best practises we usually share.