Chart of accounts and receivables

SOLVED

Hello

I am trying to determine if i need an income account or use my expense account for a certain receivable. We use an Toll highway (acct 5020) in payables.  We also charge back this fee to contractors who use this toll highway. Do I use this same account (5020)in receivables or create an income account (4###) for this?  GST/HST is being charged as well as we are collecting funds.  Thank you in advance! 

  • +1
    verified answer

    Hi  ,

    Thanks for reaching out! Based on the details you've provided, since the toll fees are being billed back to contractors, it would be best to create a new income account for tracking these charges rather than using the same expense account (5020). This ensures clarity in your accounting and prevents mixing income and expenses. Typically, you can set this up in the 4000 series to track income more effectively. This also aligns with the best practices for managing your Chart of Accounts, where income and expense accounts are kept distinct for clear financial reporting​ (Sage Help)

    Additionally, per Sage guidelines, ensure that GST/HST is correctly applied to these toll charges and recorded in the appropriate GST/HST payable accounts​. For further guidance on setting up or adjusting your chart of accounts, this Sage Knowledgebase article provides more detailed instructions on managing income accounts.

    If this helps, please mark it as verified :)

    Warm regards,
    Erzsi

  • 0 in reply to Erzsi_I

    Thank you Erzsi!   To name an account like this, something like Toll repayment income?  I struggle naming accounts!  Thanks again!