What are Sub-Accounts?
Sub-accounts are child accounts created under a parent account. It helps to track the income and expense(s) of the parent account effectively.
When do I use Sub-Accounts?
Let’s say, you wish to track all your travel expenses and you create an Expense account as Travel. You can create sub-accounts under the parent account as Lodging, Tickets, Cab charges etc. The creation of sub-accounts also helps you to view certain Reports in detail through drill down of the Report.
Few other scenarios are described below where sub-accounts are beneficial to precisely track the income or expense.
You maintain an Expense account for all the Insurance you pay. You wish to track all the Insurance payments individually. You can create an Expense account as Insurance. You can create sub-accounts as Property Insurance, Automobile Insurance, Other Insurances etc. under the parent account to track the amount paid for each Insurance.
You have a business and there are several ways in which you earn Income. You create an account as Income and you can create sub–accounts as Sales Revenue, Interest Received, Rentals Received, Other Income etc. You can further create a sub-account under Rentals Received such as Beach View Property, Housing flats etc. This helps you to track your Income in detail.
You have a Book Shop. You create a Cost of Goods Sold account as parent account. You can track the cost for different genres of books that are sold. You can create sub-accounts such as Fiction, Comedy, Drama, Horror, Romance etc. This helps you to track the costs of the books sold according to genres.
You can create sub-accounts on the go in certain modules. Say Bills.
- Go to the Bills module and click on the +New button.
- Click on the Select Account drop down menu.
- Click on + New Account and a pop-up page is displayed.
- Select the appropriate Account Type and give an Account Name.
- Check the Make this a sub-account option.
- Choose a suitable Parent Account and fill in the other details.
- Hit Save.
In the same way, you can create sub-accounts in the modules such as Items, Bills etc.,
Note: You can create a sub-account under a sub-account but this is limited to only two levels of sub-accounts. However, you can create multiple sub-accounts under a parent account.
Currently, you can create sub-accounts under all the following Account Types,
- Other Asset
- Other Current Asset
- Fixed Asset
- Other Current Liability
- Credit Card
- Long Term Liability
- Other Liability
- Other Income
- Cost of Goods Sold
- Other Expense