There are three types of General Ledger accounts that can be created: Asset, Revenue, and Liability. Each CivicRec site defaults with a few of these accounts already set up, but you can customize and add your own GL accounts. The three types are described below.  

Asset/Payment Accounts 

Payment or Asset accounts are for cash or other resources that are owned and controlled by your organization. This will be debited for all cash, check, and credit/debit receipts received into CivicRec. One account is typical, but more can be used. Types of Asset accounts include:

• Cash
• Check
• Credit Card/Debit Card
• ACH (Automated Clearing House, i.e. Electronic Checking) 
• Scholarships
• Gift Cards

Note: All of the above are also payment types that are used in CivicRec.

You can create different Asset Accounts for each payment type, but that isn’t required. You can also use the same GL Code but different asset account descriptions to provide more visibility with GL reporting.

Asset/Payment Account Codes 

• Incoming funds will touch this GL code before they are distributed into the revenue GL code(s) that correspond with the purchase. CivicRec allows for either one asset code for all incoming cash, checks, and debit/credit cards or one unique code for each payment type. The former is the most common and best practice.

Liability Accounts 

Liability accounts are most typically used in the case of “Credit on Account” where the department ends up with money from a patron and now owes a future service to that patron. Liability accounts are credited when account credits are created and debited when account credits are used. Other common examples of Liability accounts include “Refund Check Requests” and “Deferred Revenue”.

Some of these are used but not all are required:

• User Credit - Required
  • Note: This should be set up as a liability account but is also used as a payment account type as funds flow into and out of this account. Please see User Credit Account for more information.
• Deposits (Consult your finance department on the best use for your organization)
• Deferred Revenue (used only in Accrual Accounting, not Cash Accounting)
• Refund Check (if you use them)

Liability Account Codes 

• User Credit: CivicRec allows staff to refund a customer using account credit. Those credits can be applied by the customer to a future purchase. This is the GL code where the funds will live until a purchase is made and the funds move into the revenue GL code(s) that correspond with their purchase. Even if you do not plan to utilize User Credit for refunds, we recommend having a GL Code set up in the event of overpayments, bulk refunds, or session transfers.
• Refund Check Requests: When a refund check is initiated, the funds will be deducted from the revenue of the original purchase and then move to this GL code so the refund can be completed.
• Gift Cards: If your organization wishes to sell gift cards, we recommend having a specific GL Liability code. This GL code is where the funds for the gift card will stay until the customer makes a purchase. Once the gift card funds are used by the customer, they will move into the revenue GL code(s) that correspond with their purchase.

Revenue Accounts

Revenue is the amount of money your organization receives (income) from selling goods and/or providing services to your customers and clients. These typically will align with revenue accounts used by your finance department. They reflect how the incoming money is distributed across the various revenue lines in the organization and are credited when money is received.

Your revenue account codes will likely cover things like “Youth Sports”, “Therapeutic”, “Facility Rentals”, “Admin Fees”, etc.

Resource

• Add New GL Account
• General Ledger Accounting Guide