Here's a list of the linked accounts that are associated with Accounts and Banking accounts, along with information about how each linked account is used:
Equity Account for Current Earnings
Used to calculate your profit (or loss) for the year to date. This information is used to print the Balance Sheet and other important reports. It cannot be changed; this is to prevent errors and to ensure accurate financial reports.
Equity Account for Retained Earnings
Used to calculate your profit (or loss) for the year during the year-end closing process. This information is used to print the Balance Sheet and other important reports. It cannot be changed; this is to prevent errors and to ensure accurate financial reports.
Equity Account for Historical Balancing
Used when you first set up your MYOB software. As mentioned earlier, the principles of double-entry accounting require that all your transactions are balanced -- that all your debits equal all your credits. If you're switching to AccountEdge from a manual accounting system, it's possible that minor errors might have occurred; this account collects any out-of-balance amount for your opening entries and enables you to continue using AccountEdge even if the entries in your previous accounting system didn't balance perfectly.
Bank Account for Undeposited Funds
Used to track funds you've received but haven't deposited into a bank account. When you make an entry in the Receive Money, Receive Payments or Sales window, you can indicate that you want the amount to be grouped with your undeposited funds; if you do this, those funds will appear in this account until you deposit them in a bank account using the Prepare Bank Deposit window.
Bank Account for Electronic Payments
Used to track funds you want to include on an electronic payment. When you make an entry in the Spend Money or Pay Bills window, you can indicate that you want the amount to be grouped with your other electronic payments. Also, you can choose to pay employees electronically by choosing Electronic from the Payment Method selection list of the Payment Details view of the Card Information window. If you do this, the funds will appear in this account until you pay them electronically using the Prepare Electronic Payments window.
Account for Currency Gains/Losses
Used only for multicurrency transactions. Fluctuating exchange rates can cause you to lose or gain money on individual transactions. For example, if you sell goods to a Japanese firm and you conducted the transaction in Japanese yen, any changes to the value of the yen will affect the overall profitability of the transaction. If the yen rises between the time the sale is made and the time payment is received, you'll make money as a result of the currency gain. If the yen loses value over that time period, you'll lose money -- a currency loss. The linked account for currency gain/loss keeps track of these amounts so you don't have to.
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