General Ledger Q&A: Change Account Type

July 2019    Tags: ,

I created a new liability account in the Chart of Accounts. However, I later realized that it needed to be an income account instead. Can the Account Type be changed after saving the account?

A Liability Account Type cannot be changed to an Income Account Type because these types of accounts are not shown on the same Balance Sheet or Income Statement. However, in some cases the Account Type can be changed. Whether or not the Account Type can be changed is dependent upon certain criteria. The Account Type can be changed if all of the following are true:

  • If the Account Type is changing to an Account Type that will appear on the same Balance Sheet or Income Statement (e.g., Asset to Liability or Income to Expense).
  • If the Advanced Client Costs check box is cleared.
  • If no journal entries exist, including deleted ones, for the account.
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