Level of Detail

You assign a level of detail (LOD) to each account to control how amounts are rolled up, or summarized, into a balance for reporting purposes.

You could set up levels of detail as shown in this example:

Observe these guidelines when assigning a level of detail to an account:

• Do not skip any levels of detail.

  Nonsequential levels of detail can cause errors in financial reports.

• Assign the level of detail 3 to title accounts for the balance sheet (Assets and Liabilities and Equity).

• Depending on whether you want the next level of accounts underlined, assign level of detail 3 or 4 to title accounts for the income statement. Title accounts include:

• Revenues

• Direct costs

• General and administrative expenses

• Other income and expenses