Liability Groups

Functions > Setup > Chart of Accounts

Liability groups are only available if full accounting mode is enabled.

Liability groups are a way of grouping together similar liability transactions.  An example of a liability group would be mortgages.

You can choose to ignore some transaction types from cash flow analysis such as transferring money from one bank account to another.  This can affect some reports.

If mortgages are enabled from the options screen, you can specify that this liability group is used to acquire or repay mortgages. This will allow the mortgage to be selected, and the total outstanding balance of the mortgage will be updated. Note – this excludes mortgage interest which is an expense, not a liability.

As GST or VAT is classified as a liability, you can specify only one liability group as being the GST or VAT group. This group should be used when paying GST/VAT or receiving a GST/VAT refund.

A transaction tax rate can be set for each liability group.  This is used for GST or VAT type taxes.  Tax amounts are then automatically calculated during transaction entry.

There is an option to specify if the liability of a current liability, or a long term liability. This only affects reporting.

The option to close a group simply hides the group when adding new transactions.  Existing transactions using the group will still exist.  This can be useful if you stop needing a particular group, but dont want to delete it.