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Accounting Setup

To begin using Open Dental's Accounting system, there are several items that must be set up first.

  • Set up the Chart of Accounts.
  • Set up automated deposit entries
  • Set up automated payment entries (e.g. for cash payments).

To set up deposits to automatically create accounting transactions in QuickBooks, see QuickBooks instead.

Set up the Chart of Accounts
A chart of accounts is a list of the accounts used to organize finances and divide expenses, revenue, assets, liabilities and equity. If you are not familiar with setting up a chart of accounts, we recommend consulting your accountant. There are five types of accounts:

  • Asset accounts: e.g. practice checking account, equipment, cash box
  • Liability accounts: Loans
  • Equity accounts: Owner/Practice Contributions/Capital, Retained Earnings
  • Income accounts: For accounts receivable (e.g. sources of revenue such as patient or insurance payments)
  • Expense accounts: For accounts payable (e.g. expenses such as supplies, utility bills, employee benefits, etc.)

To get started, create at least one asset, expense, and income account.

  1. In the Manage module, click Accounting.

  1. Click Add to create a new account, or select an existing account, then click Edit. 

  1. Enter the account information:
    Description:  The account name.
    Type: The type of account.
    Bank Number: Usually only entered for Asset account types.
    Inactive:  Mark this account as inactive. It will no longer appear in the Chart of Accounts list unless you select Show Inactive Accounts.
    Row Color: For frequently used accounts, set a specific color row color to make it easier to spot.  Click on the color box to select.
  2. Click OK to save.

Set up Automated Deposit Entries
When Deposits are created in Open Dental, an entry goes into an Asset account (e.g. checking account) to balance your bank account. A second entry is made in an Income account to keep track of the income total. Define the accounts under Automatic Deposit Entries.

  1. In the Manage module, click Accounting, then Setup. Open Dental should be selected in the upper right as Deposit Software.

  1. In the Automatic Deposit Entries areas, click Add to open a list of all accounts. Double click an asset account where deposits can be automatically deposited into. Accounts entered here will be options in the Deposit into Account dropdown on the Deposit window. The first one listed will be the default. Usually it is the checking account.
  2. Next select the income account where deposits will be credited to track total income. Click Change, then double click the income account to select.

Set up Automated Payment Entries (e.g. for Cash Payments)
Some payment types, such as cash payments, may not use deposit slips. You can link these payment types to an asset account and income account. Then when Entering a Payment for the payment type, a payment transaction will be automatically credited to the 'Pay Into Account' asset account and tracked in the income account.

  1. In the Manage module, click Accounting, then Setup. Open Dental should be selected in the upper right as Deposit Software.
  2. In the Automated Payment Entries area, click Add to create an auto payment entry.

  1. Select the payment type.
  2. Click Add to select the accounts that will list as a 'Pay Into Account' option when this payment type is entered.
  3. Double click on the account to select.
  4. Click OK to save.
  5. Click Change to select the Income Account payments will be credited to. 

In the example above, only one cash box is set up.  Sometimes offices will have multiple cash boxes, one for each employee. In this case, set up an account for each employee cash box and add each cash box to this list. 

When a cash deposit is made, an ordinary accounting transaction is entered which transfers the money from the cash box to the checking account.

If the income accounts for automatic payments are set up incorrectly, transactions may be attached to invalid accounts and you may receive an error when trying to view old payments. To fix this issue, see Accounting, Troubleshooting.


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