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PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

I haven't figured out the pattern yet, but as I go through and add accounts to my chart of accounts, other accounts pop up that I didn't create. can I stop these? I'm not referring to ones that are generated as necessary, such as when you select "Track Depreciation of this Asset."
41 Comments
katherinejoyceO
QuickBooks Team

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Hi there, @PVOLLC

 

Thanks for posting here in the Community. There are default accounts that QuickBooks generates when you first create your company that can't be deleted. These are the only specific accounts that you can delete by merging them into the Services income account:

 

  • Billable Expense Income
  • Markup

 

For your reference, check out this article: Manage default and special accounts in your chart of accounts. It helps you learn about what accounts you can't delete. It also include lists of accounts that you can edit, but can't be deleted nor merged. 

 

For future reference, read through this article: Create subaccounts in your chart of accounts in QuickBooks Online. It helps you in organizing your chart of accounts to make more detailed reports. 

 

Don't hesitate to visit ask again if you have more questions. We're always delighted to help. 

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

I'm sorry; this isn't what I mean.

 

Every time I add a product to sales, for example, QBO automatically creates the following accounts:

 

Sales of Product Income

Inventory Asset

Cost of Goods Sold

 

I don't need these; I've already created them.

 

Can I stop QBO from doing this? Once these accounts are created and I go to inactivate them, it tells me inactivating them won't reduce usage.

SarahannC
Moderator

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Hello, PVOLLC. Thanks for getting back to here with clarification.

 

The usage limits are based on the version of QuickBooks you're using. I can see that you're using one of these version  "QBO Plus, Essentials, or Simple Start ". Making them inactive will reduce the limit.

 

For more information, you can refer to these articles:

 

Get back to us anytime if you have additional questions. I'll be right here. Take care!

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

I believe the usage limits you’re referring to have to do with the number of accounts you can have at each level.

 

In my case, that’s 250.

 

However, each time one of these accounts auto-populates, it seems to count toward my maximum of 250.

 

Am I correct about that? Also, back to my question, how do I make it stop from auto-populating these accounts?

AlcaeusF
Moderator

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Welcome to the Community, @PVOLLC.

 

Accounts created by the system don't count to your usage limit in QuickBooks Online. It creates specific accounts by default to help you track your transactions.

 

At this time, stopping it from auto-populating is currently unavailable. I recommend visiting the What are usage limits in QuickBooks Online? article. It contains information about what counts and does not towards the limit (scroll-down to They do not count towards limits when they are:).

 

I'm also attaching additional resource about how you can manage default and special accounts. Check out this hyperlink:

 

Manage default and special accounts in your chart of accounts.

 

Reach out to me whenever you have additional questions or concerns. Please know the Community has your back, and I'm here ready to help you. Have a good one.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Okay so they don’t count against my limit even though it says making them inactive “won’t reduce usage?”

BigRedConsulting
Community Champion

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

@PVOLLC 

RE: Every time I add a product to sales, for example, QBO automatically creates the following accounts:

 

Like Desktop, these are likely 'special' accounts, marked internally to be used by default as you create items.  There are probably others, such as when creating a sales tax item, or perhaps when turning on sales tax as feature.

 

On Desktop you can work around this in the case where you already have accounts you want to use for these purposes.

 

To do this, edit the account you already have that is a good default for each of these account types and rename it to match the appropriate auto-created account.  QB will ask you if you want to merge the accounts.  Say yes.  Then edit the merged account and rename it back to the desired account name.

 

QB will then continue to recognize it as a special account and not add the default account again.  I hope.  At least, this is how Desktop works.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Regarding "Inventory/Stock Assets and Cost of Goods Sold/Cost of Sales" and "Billable Expense Income," these accounts will exist regardless of whether or not I use them?

 

Regarding "Services," I do not provide services, I sell products. Can I edit this account into "Sales of Product Income" or will it simply remake itself?

 

To be clear, most of these are not actual Account Categories, but QuickBooks inventions, right?

MirriamM
Moderator

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

It's good to see you back, PVOLLC.

 

As mentioned by my colleague @katherinejoyceO, once you've created a company in QuickBooks Online (QBO), specific accounts are automatically created by default. While other special accounts are also created automatically when certain features are turned on in the settings. 

 

Right now, there are accounts that can't be deleted. These are:

  • Undeposited Funds: This holds funds from payments to your company until you deposit them to your bank account. You can’t delete this account as it’s required to properly record payments before they are deposited.Note: If for any reason you’ve created your own Undeposited Funds with an incorrect detail type, QuickBooks Online will not auto-generate the undeposited funds.
  • Opening Balance Equity: This is the default account for adjustments. You can only edit the name of this account, if necessary.
  • Retained Earnings: This account is for reporting retained earnings on the Balance Sheet report. You can change the name of the Retained Earnings account if, for example, you are a non-profit that prefers to use another name for retained earnings. But in all other cases, the name shouldn’t be changed.
  • Inventory/Stock Assets and Cost of Goods Sold/Cost of Sales: If you try to edit or delete these accounts, any edits to Products/Services will recreate them.
  • Reconcile/Reconciliation Discrepancies: This is used to report when your transactions in QuickBooks Online don't match the transactions reported on your bank statement.
  • Unapplied Cash Payment Income: This is used to report cash basis income from customer payments that were received but not applied to a sales form.
  • (Sales tax agency name, such as GST/VAT) Payable: This is created when you set up sales tax and reports the sales tax for every transaction.

So about your first question, you are right that those accounts will exists even if you will not use it. But for the Billable Expense Income account, you can delete it by merging into the Services income account.

 

For your second question, Services is the default income account in QBO. It operates the same as any other income account, but neither it nor the corresponding Product/Service item can be deleted, but you can edit the names of both to reflect your main income type.

 

In case you need tips and related articles in the future about the "How Do I" steps in QuickBooks Online, visit our QuickBooks Community help website for reference: QuickBooks Help Articles.

 

If you have any additional questions, get back to me anytime by posting your response below.  I'll do whatever it takes to ensure your concerns are addressed. Take care.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

In understand about the accounts that are activated when you start a company, and I’ve read the article a couple of times.

 

Two final questions:

 

1. Which auto-populating accounts correspond to which features in Settings?


2. Is there a way to be notified, or a place to look, to see if and when adding an item or feature is creating an account?

 

 

ShiellaGraceA
QuickBooks Team

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Thanks for coming back, PVOLLC.

 

The Billable Expense Income and Markup accounts were the auto-populated account when you turned on the Make expenses and items billable from the Expense settings. 

 

Here's how to get there:

  1. Go to Gear, then Account and Settings.
  2. Choose the Expenses tab.
  3. Mark the box next to Make expenses and items billable and Markup with a default rate of.
  4. Hit Save.

About your second question, adding an item won't automatically create an account. Thus, getting a notification isn't possible.

 

I've added this article about entering billable expenses for your reference.

 

If you have other questions in mind, please let me know. I'm always here for you. Good day.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

I'm sorry but this is bananas. I've read that article three times.

 

If I dare edit even the name of the auto-generated account to note that it's a QuickBooks generated account, QuickBooks regenerates the exact same account in its original form.

 

Please see attached.

 

Am I missing something here?

 

Edit - This is pretty confusing. Also, "Billable Expense Income" populated even though I haven't turned on Make expenses and items billable from the Expense settings.

BigRedConsulting
Community Champion

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

RE: If I dare edit even the name of the auto-generated account to note that it's a QuickBooks generated account, QuickBooks regenerates the exact same account in its original form.

 

Oh, if that's how it works, that's terrible! Sorry then, my solution above probably won't work. 

 

This appears to mean that QB Online is using the name of the account and not actually creating special accounts the way QB Desktop does, which it can then track by that special status, so you can control the names of accounts on your chart of accounts.  You know, the way absolutely everyone wants it to work.

 

If this is true, it's another pretty good reason to use QB Windows Desktop instead of QB Online.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

@MirriamM @AlcaeusF @ShiellaGraceA 

 

Not sure if I need to tag the mods likethat, but thanks for your help with this fairly bizarre feature.

 

Since it seems like it's a fact of life with QBO, is there at least a way I can see which items, feature, etc. relate to (and cause the generating of) which accounts?

 

That is, is there a table or setting in the program which (edit: specifically) will link the generated account with whatever caused it to generate?

 

I'm not talking about the default, hard-wired accounts that are there when you start a company.

 

Thanks for your input as well @BigRedConsulting. I actually had Desktop for a while and barely settled on QBO.

 

ReymondO
QuickBooks Team

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Thanks for coming back to the thread, @PVOLLC.

 

QuickBooks will not create an account unless you added a new one by selecting the + Add new button. Except for the special and default accounts that are already discussed in the previous responses.

 

I recommend contacting our phone support so they can review this one on their end. They can use a screen sharing tool to observe what's happening in your account. Let's connect with them by following the steps below:

 

  1. Select Help (?) at the top right and click the Contact Us button.
  2. Enter your concern in the description and hit Let's talk.
  3. Click either Get a callback or Start a chat to connect with our phone support.

 

If you need tips and related articles in completing your task, you can always visit our QuickBooks Online Help Articles website for reference. It will provide you with cool ideas on how to better manage your QuickBooks account.

 

Feel comfortable to visit us back if you need additional assistance in working with the program. We're always glad to help. 

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

With all due respect "QuickBooks will not create an account unless you added a new one by selecting the + Add new button" is 100% not true.

As the mods above explained, some accounts are automatically generated when you do certain things. This is explained in the article they posted and it's what keeps happening to me repeatedly, depending on what feature I activate or what kind of product or service I add.

 

Edit - @ReymondO  And when I contact customer service by chat, they simply link me to an article.

JessT
QuickBooks Team

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Hello PVOLLC!

 

I'd like to join the conversation and shed light on the auto-generated accounts. Yes, this happens when you turn on a certain feature or add an item.

 

Example:

  • Accounts Receivable (A/R) - it's created after your first invoice. If you invoice with different currencies, you'll have one A/R account per currency.
  • Discount item - added when you enable the discount feature for sales
  • Reconcile/Reconciliation Discrepancies - created after your first reconciliation
  • Sales tax agency name - created after turning on the sales tax feature and adding agency names. One account per agency.
  • Payroll item liability account name - it's created when you add a deduction item, payroll tax agencies, etc. One item or tax agency means one account.
  • Inventory Shrinkage - created when adjusting the quantity of an inventory item

These are a few of the accounts that are automatically generated when you add something that will involve money(amount) movement or posting. I suggest you try making changes in the test account first before doing it in your QBO company. That way, you will know how it will affect your accounts list. Anything you enter in there will be removed after you log out.

 

You can access the test account using other browsers or a private window, so you can still work on your QBO company at the same time. This will be our best way to check the effect of making changes since we don't have a list of accounts for it because they are generated as needed by a certain business.

 

If you have other questions about accounts, feel free to go back to this thread. We'll be happy to lend you a hand.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

The following accounts auto-generated and are not mentioned in the article or so far in the answers here:

Sales (Not Sales of Product Income)
Purchases
Other Miscellaneous Expense

 

Can I merge, delete, or edit these? If so, will they regenerate?

MariaSoledadG
QuickBooks Team

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Hi PVOLLC,

 

Thanks for getting back to us.

 

The auto-generate of accounts happens if there are any third-party applicationS involved and might have been connected to QuickBooks Online (QBO). Let me provide you more information so you'll know what accounts that can only be removed, merged and edited.

 

If your QBO account isn't integrated into any application, some default accounts are automatically created in QBO.

  • Undeposited Funds
  • Opening Balance Equity
  • Retained Earnings
  • Inventory/Stock Assets and Cost of Goods Sold/Cost of Sales
  • Reconcile/Reconciliation Discrepancies
  • Unapplied Cash Payment Income
  • Sales tax agency name, such as GST/VAT) Payable

To know more about accounts, please check this article for more information: Manage default and special accounts in your chart of accounts.

 

Please let me know if you have any other concerns. I'm always right here to help.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Thanks but can you answer my specific question, above, about Sales, Purchases, and Other Miscellaneous Expenses?

IntuitLily
Moderator

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

I appreciate you getting back in the thread, @PVOLLC.

 

The following accounts you mentioned are already created in the system as special/default accounts. You can make it inactive or merge the two accounts.

 

Basing on the screenshot you've provided, you have two Cost of Goods Sold. If you want to merge both accounts, just click the drop-down arrow and select Edit. Then rename the account to Cost of Goods Sold. After clicking Save and close, a confirmation message will prompt you if you'd like to merge the two. Select Yes.

 

 

 

 

You can perform these steps to the other accounts. For more details about the merging process, please refer to this article: How to merge accounts, customers, and vendors.

 

These accounts shouldn't auto-generate in QBO. If they do, I'd recommend reaching out to our QBO Support again so they can isolate this issue using their tools.

 

I'll be around to help if you need anything else. Have a great day!

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Alright, well, the answer to one of my main questions "Is there a way to tell when auto-populated accounts are created?" is to check the audit log. Every time QBO makes a new account, it records it there. This includes the default accounts created when the company is started.

 

I also sprung for Live Bookkeeper yesterday. She was pretty helpful. She told me, generally, no there is no way to stop auto-populating and no discernable way to edit most accounts without having them reappear. She says they're just a fact of life with QBO.

 

Edit - Attached is a screenshot of all the accounts QBO generates at the very start of a company, before you add any accounts, vendors, or products.

PVOLLC
Level 4

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

Sorry to keep beating this dead horse, but the article posted by the moderators and QuickBooks Team needs to be updated.

 

If you merge "Billable Expense Income" or "Sales/Services," they will both regenerate under their original names once you add or edit any products and services. This is true even is you turn off track expenses by customer and make expenses billable in settings.

JonpriL
Moderator

Can I stop QBO from automatically generating accounts in the Chart of Accounts?

It's nice to see you again, @PVOLLC!

 

I'd would like to thank you for sharing your thoughts about the content of your help articles. This will surely help us improve our product and be the absolute source of information.

 

I've included our QuickBooks Online Help Articles hub in case you need some easy steps for your How do I tasks.

 

If there's anything else that I can help you with, please let me know in the comment section down below. I'm always around happy to help.

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