After defining all ledger accounts on the chart of accounts window, it is necessary to map the posting accounts for sales, purchase entries.
It is also necessary to setup default cash and bank accounts.
You can do all of it from account settings window.
Cash and bank accounts: On this tab, you can specify the ledger account from drop down list for one cash account and multiple bank accounts. Any one bank account can be set as default account. That account will be selected on bank journal automatically.
Allow negative balance: If you wish to have a negative balance for your cash account or bank account then you can do so from this window. You just need to mark the option for each bank account where negative balance is allowed.
Purchase accounts: On this tab, you will need to setup accounts for basic cost, expenses and taxes. These accounts will be picked up automatically at the time of saving a purchase journal.
Sale accounts: On this tab, you will need to setup accounts for basic cost, discount, shipping cost, taxes and other amounts. These accounts will be picked up automatically at the time of saving an invoice. You can see the posting effects in general ledger after invoice is generated.
Other accounts: On this tab, you will need to map accounts for profit, advance from customer and income tax accounts. Whenever you carry forward balances from last year to next year, the net profit will be added to the profit account. All advances received from advance receipt window will be posted to advance from customer account. All income tax entries will be posted to selected income tax account.