Creating Sub GL accounts to the existing GL with transactions

QUESTION: Is there a way to create Sub GL accounts to the existing GL which already has transactions? We have some GLs for a while now, but we need to create more sub GLs to those in order to properly track the expenses. For example, GL15000 – Lawyer promotion – Associates is the only GL for all 8 associates and since it has transactions, the system is not allowing me to create sub GLs. If that is not possible, what is the alternative?

RESPONSE: Acumin GL account structure is flexible and powerful. You are able to create up to 5 levels of sub-account for each Parent GL Account, as well as to have a combination of Functional Department Logic and Member Logic. You can then build a special statement and organize them by Functional Department, etc.

In your example, you probably concluded that sub-account with Member Logic will be the one to use. This will give you 1 Parent GL “Lawyer Promotion” with as many sub-accounts Member Logic as you need. Note that your Firm must have the appropriate license to use sub-account logic.

A parent GL Account cannot have GL Operations; only its sub-accounts can. Therefore, you will not be able to create sub-account under an existing GL Account with transactions. For such scenario, there are two possibilities: you can engage Dexco by following up with Support@dexco.com to assess a request for a data conversion, or you can create new GL Accounts and transfer existing transactions through Journal Entries.

Data Conversion

In summary, in planning with your firm, we would remove GL transactions linked to the existing GL Account and remap them to new Sub-Accounts which we would create, and then build conversion rules with your help to proceed with the data conversion.

Create New GL Accounts

You can create new GL Accounts and build your owned sub-account structure. Once done, use Journal Entries to transfer transactions from your previous GL (ex. 15000) to the new corresponding sub-account. Once your old GL Account is empty, you disallow posting from within the GL Account properties to prevent additional transactions.