About main account types
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Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
The following main account types determine how a main account is used in the chart of accounts. You must select a main account type when you create a main account in the Main accounts - chart of accounts: %1 form.
Profit and loss, Revenue, and Expense – These main accounts are used as posting accounts. Profit and loss accounts are used to record revenue and expenses. The sum of all operating accounts determines the year-end results. Revenue and Expense main accounts have the same function as Profit and loss main accounts.
Balance sheet, Asset, Liability, and Equity – These main accounts are used as transaction accounts to record the amounts that a legal entity owns or owes. If you use Asset, Liability, and Equity main accounts, the accounts can have more specification, and you can more precisely structure reports about the balance of the legal entity.
Total – These main accounts are used to add account intervals. Configure the Total main account type by using the Sales tax totals form, which displays the total of the group balances for all account intervals.
Reporting – These main accounts are used for financial statement reporting.
Common – These main accounts are for accounts that are used in banks or financial institutions in China. Accounts that have a Common main account type are recorded as assets if the balance is positive and as liabilities if the balance is negative. An example of an account that has the Common main account type is a currency hedging account.