Settings explained: Accounting defaults
Default GL accounts for revenue, expenses, tax, and discounts.
Jul 11, 2026
Accounting defaults settings
The Accounting defaults tab specifies which general ledger (GL) accounts are used by default when you create financial documents like invoices, bills, and receipts. These settings ensure that revenue, expenses, taxes, and discounts are posted to the correct accounts automatically.
Fields explained
| Field | Purpose | Example |
|---|---|---|
| Default Sales Revenue Account | GL account credited when you invoice a customer | Sales Revenue, Operating Revenue |
| Default Cost of Goods Sold Account | GL account debited when inventory is sold | Cost of Goods Sold, Cost of Sales |
| Default Expense Account | GL account debited for miscellaneous expenses not tied to a product category | General Expense, Operating Expense |
| Default Discount Account | GL account where discounts are posted (debit side for company, varies by type) | Discounts Allowed, Sales Discounts |
| Default Sales Tax Account | GL account where sales tax is accumulated (credit balance) | Sales Tax Payable, VAT Payable |
| Default Vendor Return Account | GL account where returns to vendors are posted | Inventory Returns, Vendor Allowances |
| Default Customer Refund Account | GL account where customer refunds are posted | Refunds Given, Sales Returns |
| Default Bank Account | Primary bank account for cash deposits and payments | Main Operating Account |
| Default Advance/Prepayment Account | GL account where customer prepayments are held until invoicing | Customer Advances, Deferred Revenue |
| Default Operational Cost Account | GL account for indirect costs (shipping, delivery, installation fees) | Operational Expense, Overhead |
What this controls
- Automatic posting — when you create an invoice, the revenue account is automatically credited; COGS is automatically debited.
- Consistency — all similar transactions post to the same GL accounts unless a specific item or product overrides the default.
- Compliance — ensures that financial data is recorded to the correct accounts for tax reporting and audits.
- Multi-product environments — different product types can have different default accounts (pharmacy vs. retail vs. services).
Tips
- Work with your accountant to map GL accounts correctly before saving these settings.
- Review your Chart of Accounts first — if you're missing a key account (e.g., a Sales account), create it before setting defaults.
- Account structure should match your reporting needs — if you need separate tracking for different revenue types, create separate accounts.
- Changing defaults affects future documents only — it does not recategorize past transactions.
- Accounts must exist — you cannot select an account that hasn't been created in your Chart of Accounts.
To access these settings, go to Settings → Accounting Defaults Open in Usystems.
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