There are three main types of account
Trading List: Operating revenues and expenses are directed to it, to extract the total profit (sales revenue - cost of goods sold).
List of profits and losses: The rest of the revenues and expenses are directed to it to extract the net profit
Budget(balance sheet) : (assets - liabilities - equity) are directed to it
To determine the posting type for accounts follow the next steps:
Go to Accounting
Open posting type page
Press “+” to display the Chart of Accounts under the “no posting type” section
Expand the chart by clicking on + then select the account
Select Posting type from drop down list
Click Save
⭐Must specify the posting type for each chart of accounts by repeating the previous steps with each accounts “no posting type” section in order to be able to generate horizontal financial statement report