About Required Balancing Account Types

This table lists the required balancing account types with their account types and uses. You can select more than one balancing account type for an element value that's a controlling element.

Balancing Account Type	Account Type	Use
AP Disbursements	Asset	Indicates which cash clearing account will be used to pay for accounts payable warrants. It is only used when verifying a voucher in Manage Payroll Vouchers.
AP Liability	Liability	Used to recognize debt incurred in purchasing & accounts payable. Receiving an order receipt or submitting a vendor invoice increases the AP liability, while verifying a voucher decreases the AP liability. It's essentially a holding account for AP liabilities for unpaid receipts.
Budget Control	Fund Balance	Offsets against budget entries
Cash Clearing for Fund	Asset	If clearing accounts are being used, this type is used by the AP voucher, payroll register, and payroll liability voucher to reconcile the Due To/Due From transactions with the AP and payroll clearing accounts when the voucher or register is verified.
Cash Receipts	Asset	Cash account for cash receipts revenue
Closing Fund Balance	Fund Balance	Profits or losses posted when closing a cycle
Direct Deposit Disbursements	Asset	Cash disbursements for direct deposits
Due From	Asset	Records monies due from another fund
Due To	Liability	Records monies due to another fund
Investment in Capital Assets	Fund Balance	Offsets asset amounts as they are recorded in the fixed asset fund. Offsets an asset purchased in a governmental fund. The asset is recorded in the capital asset tracking fund as a debit, and this type is the credit, or balancing account.
Payroll Disbursements	Asset	Cash disbursements for payroll checks
Payroll Liability Disbursements	Asset	Cash disbursements for payroll liability checks
Period Accrual ER Benefits	Liability	Holding account for employer-side of payroll benefits for the period accrual export
Period Accrual Wages	Liability	Holding account for wages for the period accrual export
Reserve for Encumbrance	Fund Balance	Offsets against encumbrances
Salary & Wages Payable	Liability	Holding account for payroll liabilities for unpaid paychecks
Use Tax Liability	Liability	Records monies due for use tax

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