This article shows you how to create sub-accounts in your Chart of Accounts.

Scenario :

Imagine you're running an e-commerce business in multiple platform.

Create a parent account and sub-accounts to track your total sales from Shopee, Lazada, website, and other sales.

1. Create a new account named [5011 All Sales].

This account will act as the parent account.

Accounting > Chart of Accounts > + New

The reason to create a new account as parent account is because Bukku uses [5000 Sales Income] as the default income account in the Company Settings.
When an account is linked to any transactions or settings, it can't be used as a parent account.
It is easier to link sub-accounts to a new parent account that does not have historical transactions.
Feel free to input your own preferred account code.

2. Create sub-accounts: Shopee, Lazada, Website, and Other Sales.

3. Once the sub-accounts are created, the Chart of Accounts should look something like this:

4. Optional -

To set this account as the default income account, select [5011-04, Sales - Others] in Company Settings.

Control Panel > Company Settings > Income Account > select [5011-04, Sales Others] > Save.

5. The total amount of all sales for this parent and sub-accounts will be shown in the P&L report:

Important Notes:

If your account is connected to any transactions or settings, it can't be used as a parent account.

Reason: the total amount in the Parent account is from its sub-accounts. Hence, the Parent account should not have any transactions of its own.

1. Assuming the Account Receivable account is linked to multiple transactions.

2. Firstly, create a new account and name it [All Receivables]. This will be the parent account.

Chart of Accounts > +New

3. Navigate to [1001 - Account Receivables], and select [1010 - All Receivables] as it's parent account.

4. [1010-All Receivables] - Parent account.

[1001-Account Receivable] - Sub-account.

5. This applies to Account Payables and other accounts that are linked with transactions.

How to make a sub-account under a parent account that have transactions?
You can either delete or edit the transaction to be moved at another account first. Only when your parent account is no longer linked to any settings or transactions, then only you can set that account as Parent.

Why do I need a sub-account?
Sub-accounts and parent accounts in accounting work like folders and sub-folders on your computer. They help organise your financial information better, making it easier to see where money is coming from and going to, while also letting you quickly understand the big picture of your finances.
How many levels of sub-accounts I can create?
Maximum 2 levels for Chart of Accounts only: Parent account and sub-accounts.
It's important to note that sub-accounts under another sub-account are not supported in Bukku.