~SYSTEM Activity Explained

We often get calls wondering what in the world ~SYSTEM is on the balance sheet or in the chart of accounts.

 The ~SYSTEM is simply an Activity used to prevent accidental use of Accounts Receivable, Reserve for Encumbrance, General Fund Balance, etc. by grouping them in a location not easily accessible for use.

If the ~SYSTEM accounts are used manually in a transaction when receipting, making a purchase order, etc., the MySchoolAccounting system will go out of balance (since these accounts are already posted automatically by the software).