Within the chart of accounts, users may need to further organize their accounts by nesting them inside of another account. This umbrella account can then effectively total the amount of all the accounts within it to offer better reference when looking at the different reports and views.
An account with no beginning balance that houses at least one other account is called a parent account. When accounts become nested under parent accounts, their overall total can be seen in most reports without unneeded detail. Furthermore, nesting within a parent account allows users to reconcile for multiple accounts at once.
When looking at the Chart of Accounts, users can see what level an account is on by looking at the number of lines on the far left of their row. Accounts with two lines are nested within parent accounts with one line.
To create an account you plan to use as a parent account, users will go through the same workflow as creating a normal account but will choose an account type to create the account under (not another parent account) and leave the beginning balance field empty.
To create a sub-account for an existing parent account, users will go through the same workflow as creating a normal account but will scroll down and select the parent account to create the account under. Sub-accounts can have a beginning balance.
Accounts can be edited to be placed under parent accounts after they've been created by clicking on the pencil icon to the right of the account's row.