In MYOB Accounting Plus, most of the actual accounting entries -- the debits and credits that show up in the Transaction Journal window and elsewhere -- are hidden from view. This speeds transaction entry and makes it easier for users to make the most of their MYOB software even if they don't have much accounting experience. Linked accounts make this possible.
When you created your company file, linked accounts were set up for you automatically. If you set up your company's information using the Easy Setup Assistant, you were asked to review the selections that were made for you, to be sure they're the best choices for your business.
When you create a newdetail account, you can set up the linked account as part of the process. Link the account to a transaction type (optional; detail accounts only) is Step 5 of Creating accounts.
You can change your linked accounts at any time; any changes you make will be reflected in the transactions you create after that point. Any transactions you created earlier won't be affected in any way, however.
Why linked accounts?
Double-entry accounting, the standard accounting method used by MYOB products and the accounting profession, requires that every transaction have two or more debit and credit entries that balance; that is, the debit amounts and credit amounts must equal zero. There's nothing magical about these debit and credit entries, but many people find them cumbersome to make, and they can be error prone.
By setting up linked accounts before you enter your first transactions, you reduce the number of entries you have to make, and there are fewer opportunities for typos and other errors that would have to be corrected in order to complete a transaction.
Linked accounts are required, and they should seldom need to be changed once you've chosen the accounts that are right for your business. In fact, if you change your linked accounts frequently, you may find it's more difficult to gauge the state of your business, since transaction information will be spread across a number of accounts.
Using the Easy Setup Assistant, you can change most of the linked accounts for the Accounts, Sales, Payroll and Purchases command centres.
In addition, you can change the linked accounts that will be used to track individual payroll categories using the Wages Information window, the Deduction Information window, the Employer Expense Information window and the Tax Table Information window. For a step-by-step procedure see To change a linked account.
Click a category below to learn the linked accounts associated with the category and where the linked accounts will be used:
Nominal Ledger & Chequebook linked accounts
Accounts Receivable linked accounts