mainly defines if the account is a debit or credit account also used for reporting, mandatory field. It is a categorization of ledger Accounts. If you do not want to use this feature just use the 'Debit' or 'Credit' values.

Income Statement Classes

• Debit
  • Cost of Sales
    • Cost of Goods Sold
      • Good and Material Cost
      • Good Freight Cost
      • Good Royalties Cost
      • Inventory Shrinkage
    • Cost of Services Sold
  • Operating Expense
    • Sales and Marketing Expense
      • Advertising
      • Promotional Materials
      • Sales Compensation
      • Sales Travel
    • General and Administrative Expense
      • Employee Compensation
      • Non-Employee Compensation
      • Professional Services
      • Banking Service Charges
      • Data Processing
      • Dues and Subscriptions
      • Education Expense
      • Facility Expense
      • Insurance Expense
      • Miscellaneous Expense
      • Office and Supplies
      • Product Research (custom)
      • Tax Expense - Income
      • Tax Expense - Other
      • Utilities Expense
      • Vehicle Expense
      • Travel and Entertainment
    • Contributions
    • Non-Cash Expense
      • Amortization
      • Bad Debt Expense
      • Depreciation
    • Non-operating Expense
      • Interest Expense
      • Company Owned Life Insurance
      • Royalties Expense - Non-COGS
• Credit
  • Revenue
    • Goods Revenue
    • Services Revenue
    • Other Revenue
    • Discounts and Write-downs (contra)
    • Customer Returns (contra)
  • Non-Operating Income
    • Cash Income
    • Interest Income
    • Non-Cash Income

Balance Sheet Classes

• Debit
  • Assets
    • Current Assets
      • Cash and Equivalent
      • Inventory Assets
      • Accounts Receivable
      • Loans Receivable
      • Prepaid Expense (paid, not yet incurred)
      • Prepaid Inventory (paid, not yet billed)
      • Accrued Revenue (earned, not yet received)
      • Allowance For Bad Debts (contra)
    • Long Term Assets
      • Land and Building
      • Equipment
      • Accumulated Depreciation (contra)
    • Other Assets
      • Intangible Assets
      • Accumulated Amortization (contra)
  • Equity Distribution
    • Return of Capital
    • Dividends
• Credit
  • Liabilities
    • Current Liabilities
      • Accounts Payable
      • Loans Payable
      • Accrued Expenses (incurred, not yet paid)
      • Unearned Revenue (received, not yet earned)
      • Third-Party Holdings
    • Long Term Liabilities
  • Equity
    • Owners Equity
    • Retained Earnings
    • Treasury Stock (contra)