General Ledger Configuration sets the default Chart of Accounts accounts that the system uses to auto-post financial transactions — both on the purchasing side (receipts, tax, freight, vendor invoices) and on the receivables side (customer invoices, revenue, sales tax liability, customer payments). Setting these up correctly lets the system post to the right accounts automatically, so users don't have to pick accounts on every transaction.
The page has two tabs:
- Procurement — seven account mappings used when receiving goods, processing purchase orders, and booking vendor invoices.
- Accounts Receivable — four account mappings used when posting customer invoices and payments to the general ledger.
Each tab has its own configured-count badge (e.g., "6/7 Configured" on Procurement). Aim to fill every field on both tabs before you start processing transactions — missing defaults will cause posting errors.
Payroll posting accounts are configured elsewhere. The GL accounts that payroll runs post to live on the dedicated Payroll Posting settings page, not here.
Where to Find General Ledger Configuration
Navigate to Settings → General Ledger Configuration in the left-hand sidebar.
Navigation path: Dashboard → Settings → General Ledger Configuration
Procurement Tab
The Procurement tab configures the accounts the system posts to when goods are received against a purchase order, when tax and freight are applied, and when vendor invoices are booked into the general ledger.
The tab is organized into three cards — Receipt Posting Accounts, Tax & Shipping Accounts, and Payment Posting Accounts — covering seven default account mappings in total. A small "X/7 Configured" badge at the top shows how many you've set, with a warning until all seven are mapped.
Click Save All Settings at the bottom of the page to save changes.
Account Mappings
All fields use a searchable dropdown linked to your Chart of Accounts. Type an account name or number to search.
Receipt Posting Accounts
These accounts are used when goods are received against a purchase order.
| Field | Description |
|---|---|
| AP Accrual | Accrues the accounts payable liability when a receipt is posted before the vendor invoice arrives. |
| Inventory Asset | Posts the value of received goods to your inventory asset account. |
| Purchase Price Variance | Captures the difference between the PO price and the actual invoice price on standard-cost POs. |
Tax & Shipping Accounts
These accounts are used when tax and freight charges are applied to purchases.
| Field | Description |
|---|---|
| Sales Tax Expense | Posts sales tax charged on purchases as an expense. |
| Shipping & Freight | Posts freight and delivery charges on purchase orders. |
| Sales & Use Tax Payable | Accrues tax amounts owed to tax authorities. |
Payment Posting Accounts
The account used when payments are posted against purchase orders.
| Field | Description |
|---|---|
| Accounts Payable | The primary accounts payable account for vendor invoices. |
Example Procurement Configuration
| Field | Account |
|---|---|
| AP Accrual | 21000 - AP Accrual |
| Inventory Asset | 14000 - Inventory Asset |
| Purchase Price Variance | 54000 - Purchase Price Variance |
| Sales Tax Expense | 51500 - Sales Tax Expense |
| Shipping & Freight | 51600 - Freight & Delivery |
| Sales & Use Tax Payable | 23000 - Sales & Use Tax Payable |
| Accounts Payable | 21010 - Accounts Payable / AP Trade |
Tips for the Procurement Tab
- Map all seven fields before creating your first purchase order — missing defaults can cause posting errors.
- Watch the X/7 Configured badge to confirm you've set every account.
- Work with your accountant to confirm which accounts should receive each type of posting.
- Use the AP Accrual account if your business receives goods before receiving vendor invoices (three-way matching). If you receive the invoice at the same time as goods, the AP Accrual and Accounts Payable accounts can be the same.
- Sales & Use Tax Payable and Accounts Payable are both liability accounts — make sure you pick liability accounts in those fields, not expense accounts.
Accounts Receivable Tab
The Accounts Receivable tab sets the fallback accounts used when posting AR invoices to the general ledger, plus the cash account used when customer payments are applied. The invoice-posting fallbacks are used when the project or account tied to an invoice does not have a specific COA assigned.
The tab has two cards. Invoice Posting Accounts holds the three invoice fallbacks, tracked by an "X/3 Configured" badge — all three should be configured before posting AR invoices to GL. Payment Posting Accounts holds the Cash / Bank mapping used for received payments.
Click Save AR Settings at the bottom of the page to save changes.
Invoice Posting Accounts
Accounts used when posting AR invoices to the general ledger.
| Field | Description |
|---|---|
| Accounts Receivable | Debit account for invoice postings (e.g., 12000 - Accounts Receivable). |
| Revenue | Credit account for invoice revenue (e.g., 40000 - Revenue). |
| Sales Tax Payable | Credit account for sales tax liability (e.g., 23000 - Sales Tax Payable). |
Payment Posting Accounts
The account used when a customer payment is applied to a posted invoice. The payment posts as a debit to Cash and a credit to Accounts Receivable.
| Field | Description |
|---|---|
| Cash / Bank | Debit account for received payments (e.g., 10000 - Cash Operating). |
Tips & Best Practices
- Configure both tabs before you start processing transactions. Procurement defaults drive PO posting; AR defaults drive customer invoice and payment posting.
- Treat the AR invoice defaults as fallbacks. If a project or account already has specific COA accounts assigned, those take priority. The fallbacks only kick in when no override exists.
- Don't skip Cash / Bank — without it, applying a customer payment to a posted invoice has no debit account to post to.
- The Sales Tax Payable account on the AR tab and the Sales & Use Tax Payable account on the Procurement tab often point to the same liability account — confirm this with your accountant.
- Revisit this page whenever you add new accounts to your Chart of Accounts, in case any of the defaults should be updated.
Related Topics
- Chart of Accounts — Set up the accounts referenced here
- Tax Entities — Configure tax rates that interact with these accounts
- GL Categories — Group the accounts used here on financial reports