How to Use Subtotal Levels

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Subtotal levels are break points you insert into the general ledger to get a total for the group of  accounts since either the beginning of the account numbers or since the last subtotal.

There are a total of 9 levels possible; however you may not need to use all the levels.  Before inserting any subtotals the balances of all levels are equal to zero (0).  As each account is totaled on the trial balance its balance is added to each level 1 through 9.  After a subtotal is printed the level used returns to zero.  All other levels retain their balances and continue to accumulate.  The level used also begins to accumulate again, but its balance will be different than all the other levels since it was zeroed out and started over.   So if that level is subtotaled again it would only have the balance in it since the last subtotal.  Subtotal account numbers may need to be created to get a group of lower levels subtotaled together by using a higher level.

If, for example, there are 5 checking account and 5 savings accounts and the cash accounts should  be grouped together as well as the receivables.  The cash accounts should not be added into the receivables, set the level to one after the last cash account. After the subtotal is printed it goes back to zero (0).   The receivables may also be added together with a level 1, this total will only include the receivables.  You may then choose a subtotal level 2 in a blank or dummy account number to add the two subtotal ones together.

Example:

Cash Accounts:

Checking account 1               $500.00

Checking account 2               $350.00

Checking account 3               $450.00

Checking account 4                 $67.95

Checking account 5                $234.65

Subtotal 1:                        $1,602.60

 

Saving account 1                  $590.00

Saving account 2                  $600.00

Saving account 3                 $1005.00

Saving account 4                 $2090.55

Saving account 5                 $2225.45

Subtotal 1:                         $6511.00

Subtotal 2:                         $8113.60 (used a blank account number here)

 

Accounts Receivable              $350.00

Subtotal 3:                         $8463.60