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Changes in chart of account CAGB

Hi Experts,

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

Account Description

G/L Account Type

Account Type Description

400000

Sales Revenue - Domestic - Product No.1

REVGAN

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?.

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1 Answer

  • Best Answer
    Oct 15, 2015 at 12:51 PM

    Hi Bilal,

    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.

    Best regards

    Marlene

    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.

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