T Accounts

T Accounts in MGL are designed to provide businesses with multi-faceted Profit & Loss reporting where profit needs to be calculated at more than one level.

While Departments use the Chart of Accounts to separate transactions into categories, T Accounts are based upon identifying transactions individually and allocating them to a secondary system of unique sorting categories. This allows MGL to sort the transactions in two ways - firstly by the Chart of Accounts and secondly by each transaction's T Account number.

MGL allows up to five categories of T Accounts from T1 to T5. This expands your ability to report on profit without the need for excessive GL accounts in the Chart of Accounts.

An example will help to illustrate how T Accounts work. A business needs a Profit & Loss report for each warehouse by individual product categories. To make this happen, each transaction the business makes needs to be allocated to a GL account number as well as to the relevant T Account numbers. For example:

• T1 - Warehouses

• 100 - New South Wales
• 200 - Victoria

• T2 - Product Categories

• 001 - Coffee
• 002 - Tea
• 003 - Sugar

During transaction processing, Micronet asks the user to choose a T1 and T2 account number for every transaction. MGL sorts these transactions upon request and compiles the relevant Profit & Loss reports as required. In the example above, MGL can report specifically on profit for coffee products for New South Wales.

As another example, if the following T Accounts are setup in MGL:

A Profit & Loss report can be printed for:

Once T Accounts have been activated in MGL, T1 and T2 are always compulsory options which means that every transaction entered into Micronet needs to have a T1 and T2 category applied. T3, T4 and T5 can be set as compulsory if required.

Technical Tip 2.8 Feature You can now print a balance sheet by T account.