Required system accounts and what they do
Reference guide to system accounts that every Usystems tenant must have.
Jul 11, 2026
Required system accounts and what they do
Every Usystems instance is created with a set of pre-configured system accounts that handle specific accounting functions. These accounts cannot be deleted and must remain properly configured for financial features to work correctly.
Below is a reference table of the primary system accounts and their purpose:
| Account Name | Type | Purpose |
|---|---|---|
| Bank Accounts | Asset | Record deposits and withdrawals. One account per physical bank account. Used by payment records and cash receipt documents. |
| Accounts Receivable | Asset | Automatically receives credit entries when invoices are issued (before payment). Tracks money owed by customers. |
| Accounts Payable | Liability | Automatically receives debit entries when bills are recorded (before payment). Tracks money owed to vendors. |
| Inventory | Asset | Holds the value of goods on hand. Updated automatically when inventory is received, sold, or adjusted. Product-specific in multi-inventory setups. |
| Cost of Goods Sold (COGS) | Expense | Records the cost of products sold. Automatically populated when goods are shipped or invoiced (varies by product configuration). |
| Sales Returns & Allowances | Expense | Offsets revenue when invoices are reversed or items returned. Used in return/refund workflows. |
| Retained Earnings | Equity | Carries forward net income from previous periods. Automatically updated at period close. Cannot be manually edited. |
| Opening Balances | Equity | Used only during initial chart setup to record beginning balances from legacy systems. |
| Rounding | Expense | Handles minor rounding differences in multi-currency or automated calculations. Usually inactive. |
Notes on system accounts
- Do not rename or retype system accounts. Usystems identifies them by internal name, not user-given code. Renaming may break features.
- Currency: Some system accounts (especially Accounts Receivable, Accounts Payable, and Inventory) may require separate instances per currency or per warehouse, depending on your product version. Check your product configuration.
- Modification risk: Changing default values, currency, or category on system accounts can cause posting failures. Only modify if your accountant or a Usystems consultant confirms it is safe.
- Validation: When you first access the Accounts page, Usystems scans for missing required accounts and alerts you. If alerted, contact support before proceeding with transactions.
What if a required account is missing?
If a system account is missing or misconfigured:
- Go to Settings → Accounts. Open in Usystems
- Look for any warnings or alerts on the page.
- If an account is missing, contact your Usystems administrator or support. Do not attempt to manually recreate system accounts; they must be restored by the system or by support.
Accounting impact
- System accounts are controlled by the application logic, not by manual posting. For example, when you record an invoice, the system automatically debits Accounts Receivable and credits Sales Revenue—you do not manually post to these accounts.
- Using correct system accounts ensures that financial reports (balance sheet, income statement, aging reports) reflect accurate balances and calculations.
- Misconfigured or missing system accounts can cause transactions to fail with posting errors.
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