At it's simplest level an Account Tree helps you build different Profit & Loss and Balance Sheet report layouts. An Account Tree defines the rows and how they will be grouped and displayed on your reports including the running totals like Gross Profit or Operating Profit. These groupings may also be used to provide segments in Calxa charts.
1. Create Categories & Running Totals
First create the overall structure using Categories and Running Totals. See the article Account Tree: Categories & Running Totals for more details but in short this is the first level of your account tree.
In the example below we have categories named Revenue, Cost of Goods Sold, Variable Costs, etc where Running Totals are configured on the Cost of Goods Sold and Fixed Costs groups as Gross Profit and EBITDA respectively.
2. Create Header & Sub Header Accounts
Within each category you can further group and or summarise your accounts using Headers. See the article Account Tree: Headers & Detail Accounts for more details but in short this is where you can create a hierarchy of accounts up to 10 levels deep.
In the example below we have created Grants as a header with sub headers as Commonwealth, State and Local. Likewise Fundraising has sub headers of Gifts and Contributions.
3. Allocate your Detail Accounts
Synced from your Account System we have your Chart of Accounts. These include detail accounts and may also include header accounts. See the article Account Tree: Headers & Detail Accounts for more details but in short you simply need to drag and drop these accounts onto the desired headers to create your mapping.
In the example below we have allocated 3 detail accounts to the header account called Commonwealth.