Account Types

Most accounts entered in your chart of accounts will be posting accounts. A posting account is an account that can hold a balance. Other types of accounts, such as heading are used merely as a reference when you print reports, and do not hold balances.

There are several different types of posting account. Most will fall under the general classification "posting" and should be specified as such. Exceptions are bank accounts, which should be classified as "bank", your opening stock account (if you have one) which should be classified as "opening stock" and your "closing stock" account (if you have one) as "closing stock".

It is very important that you distinguish between opening, closing, and regular posting accounts. If you don't, CAPITAL may be incorrectly determine your retained earnings at the end of the financial year.