Understanding the Chart of Accounts in Brokerage Engine
Overview:
In this article, we will review the Chart of Accounts and how it interacts in the system. Please find the available resources below.
Where to Find It:
You can access the Chart of Accounts by navigating to:
Accounting > Settings > Chart of Accounts |
This page displays all of your General Ledger accounts, including account numbers, names, types, and active/inactive status.
What Is a GL Account?
A General Ledger (GL) account is an individual line item in your Chart of Accounts. Each GL account has a number, a name, and a type that determines how it behaves in your financial reports. GL accounts are used throughout BE to control where money is recorded—on commission schedules, transaction fees, invoices, expenses, deposits, and more.
For example, your Chart of Accounts might include accounts such as:
- 1000 – Operating Account (Bank)
- 4000 – Commission Income (Income)
- 5000 – Agent Billing Expense (Expense)
Account Types
Every GL account has a type that determines how it is classified on financial reports and where it can be used in BE. The account types fall into the following categories:
Category | Account Types | Used For |
Assets | Bank, Other Current Asset, Fixed Asset, Other Asset | Operating accounts, escrow accounts, trust accounts, equipment |
Liabilities | Accounts Payable, Credit Card, Other Current Liability, Long Term Liability | Agent payables, credit card accounts, payable accruals |
Equity | Equity | Owner’s equity, retained earnings |
Revenue | Income, Other Income | Commission income, marketing service fees, other brokerage revenue |
Expenses | Expense, Other Expense, Cost of Goods Sold | Agent billing, transaction fees, marketing expenses, office costs |
Why Account Types Matter: The account type controls where a GL account can be selected throughout BE. For example, when setting up a commission schedule fee, only certain account types will appear in the dropdown. If you change an account’s type (e.g., from Income to Expense), it will affect which dropdowns and configuration fields that account is available in. |
Where Chart of Accounts Are Used in BE
GL accounts from the Chart of Accounts are referenced throughout many areas of Brokerage Engine. Understanding where they are used helps ensure your accounting is set up correctly.
Area in BE | How GL Accounts Are Used |
Commission Schedules | GL accounts are assigned to commission plan line items and fees (e.g., transaction fees, E&O fees, legal fees) to control where income and expenses post. |
Marketing Opportunities | Each marketing opportunity is tied to a GL account that determines where invoice charges post when synced to Accounting. |
Marketing & Services Items | Product & Service items in Accounting (including Cash Register items) are each mapped to a GL account. |
Configuration Page | Default accounts are set here, including the Default Agent Billing Income Account, Default Operating Account, and Default Bill Payment Account. |
Bank Reconciliation | Bank-type GL accounts are used to reconcile deposits and payments against bank statements. |
Bank Register | Transactions are viewed and managed by individual bank or asset accounts from the COA. |
Expenses & Bills | Expense and bill transactions are posted to Expense-type GL accounts. |
1099 Reporting | GL accounts flagged for 1099 tracking determine which transactions appear on the 1099 Transaction Detail Report. |
Allowances | Allowance restriction accounts determine which GL accounts qualify for agent allowance payments on invoices. |
General Ledger Report | All transaction activity is summarized by GL account on this report. |
