The Payable and Collectable Option: Impact on Account Display and Subdivision in the Chart of Accounts

A detailed explanation of the role of the “Payment and Collection Allowed” option when adding a new account in the chart of accounts.

Answer:

• When you enable the “Payment and Collection Allowed for This Account” option by checking the box next to it while creating the account:

  1. Account Appearance in Vouchers:

     • The account becomes visible as a payment and collection option in payment and collection vouchers such as:
       • Cash account.
       • Bank account.

  2. Inability to Create Sub-accounts:

     • If this option is enabled, you will not be able to create sub-accounts from this account.

Additional Notes:

• It is recommended to enable this option only for accounts that will actually be used in payment and collection operations.
• The “Payment and Collection Allowed for This Account” option can be enabled for all types of accounts, including equity accounts such as partner current account.
• If you need to create sub-accounts from an account, make sure not to enable the “Payment and Collection Allowed” option.
• You must add the account to the Allowed Payment and Collection Accounts for the user you want to grant permission to by going to user settings, clicking edit next to the user, selecting the account, and saving.