Sub-Accounts

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.

Scenario 1

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.

Scenario 2

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.

Scenario 3

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.

Create Sub-Accounts

You can create sub-accounts under a parent account either from Chart of Accounts or directly from certain other modules in Zoho Books.

To create a sub-account from Chart of Accounts, please follow the steps mentioned below:

New Account

New Sub Account

Also, you can create sub-accounts on the go in certain modules. Say Bills.

Select Account

Select New Account

New Account Image

New Sub Account Image

In the same way, you can create sub-accounts in the modules such as Settings, Items, Credit Notes, Expenses, Recurring Expenses, Purchase Orders, Bills, Recurring Bills and Vendor Credits.

The newly created sub-accounts will be listed under the parent account in the Chart of Accounts.

Chart of Accounts

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,

Sub-Accounts in Reports

The changes in credit and debit of the sub-accounts will be directly reflected in the Profit and Loss Report, Cash Flow Statement, Balance Sheet, Trial Balance and General Ledger.

Zoho Books allows you to view the reports either in Collapsed view or Expanded view. Collapsed view displays the parent accounts while the Expanded view displays a drill down report along with the sub-accounts.

New Sub Account Accountant Image

Click Expand All to view a drill down report of the parent account along with the sub-accounts.

New Sub Account Accountant Image

Click Collapse All to see only the parent accounts.

New Sub Account Accountant Image

New Sub Account Accountant Image

New Sub Account Accountant Image

New Sub Account Accountant Image

New Sub Account Accountant Image

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