GL Account Types & Sub-Types

Q: Can I add my own Sub-Type or Sub-Type 2 values?

Yes. Sub-Type and Sub-Type 2 are yours to extend — add the line items your reporting requires, and the financial statements will pick them up automatically. The only fixed element is the Type, which stays as shipped. For cross-cutting management views — presenting the same accounts by department, region, or a different standard — account groups and reporting frameworks remain the better tool, since they give you multiple independent views without altering the core taxonomy.

Admin 10 min read Updated July 2026

This is the complete reference for how REDA Financials AI classifies every GL account. Classification happens on three dependent levels — Type → Sub-Type → Sub-Type 2 — plus an IFRS Category for statutory and XBRL reporting. The values are drawn directly from IAS 1, Presentation of Financial Statements, so a correctly classified chart produces IFRS-ready financial statements with no manual reclassification.

Each level is dependent on the one above it: choosing a Type filters the available Sub-Types, and choosing a Sub-Type filters the available Sub-Type 2 line items. This guarantees you can never build an internally inconsistent account (a “Current” equity account, say). Use the most specific level that applies — it makes your statements more meaningful and your reporting more precise.

Getting there. These classification fields (Type, Sub-Type, Sub-Type 2, IFRS Category) are set on each GL account. Open the App Launcher (the grid icon at the top-left of any page) → REDA Financials Admin → the GL Accounts tab, then open an account to set or change them.
Access you'll need. Classifying accounts requires the Accounting Admin v2 or Accounting Controller v2 permission set. The Accounts Payable v2, Accounts Receivable v2, and Read Only v2 sets can view accounts but not change them.

What’s fixed, and what you can adapt

REDA ships this classification ready to use and IFRS-aligned out of the box. Only one part of it is locked — everything below it is yours to shape around your own reporting requirements.

Element	Change the values?	Rename / translate?
Type	Fixed — keep the five provided	Yes
Sub-Type	Yours to adapt	Yes
Sub-Type 2	Yours to adapt	Yes
IFRS Category	Yours to adapt	Yes

Type is the one fixed element The five account Types — Asset, Liability, Equity, Revenue, Expense — are the universal foundation of double-entry accounting and the accounting equation itself. REDA provides them out of the box and they should stay exactly as shipped: they drive each account’s Normal Balance and the structure of every financial statement. This is the single classification constraint the package enforces — everything else below is open to you.

Sub-Type, Sub-Type 2 and IFRS Category flex to your business Below Type, the taxonomy is yours. Extend or adjust Sub-Type, Sub-Type 2, and IFRS Category to match how your organisation reports — add the statutory or management line items you need. REDA’s financial statements group dynamically on whatever values you define, so a line item you add simply appears as its own line with no extra configuration.

Rename anything; the API name stays fixed REDA Financials AI is fully multi-language. Every classification value — including the fixed Types — can be renamed or translated into your terminology and language, so the app reads the way your team expects. What changes is the display label; the underlying API name stays constant. That’s what keeps your reports, automations, integrations, and package upgrades working without interruption while you present the labels however you like.

Type drives the normal balance

Type is the foundation. It decides which financial statement the account appears on and — through the rules of double-entry — whether the account’s Normal Balance is a Debit or a Credit. REDA sets the Normal Balance automatically and makes it read-only, so this can never be wrong.

Type	Statement	Normal Balance	Increases with
Asset	Balance Sheet	Debit	Debits
Liability	Balance Sheet	Credit	Credits
Equity	Balance Sheet	Credit	Credits
Revenue	Income Statement	Credit	Credits
Expense	Income Statement	Debit	Debits

Contra accounts run the other way A handful of accounts deliberately carry the opposite balance to their Type — Accumulated Depreciation (an Asset with a Credit balance) and Treasury Shares (an Equity account with a Debit balance) are the classic examples. They net against the accounts they sit beside. This is normal IFRS presentation; just classify them by what they are (an asset offset, an equity offset), not by their balance direction.

Asset accounts

Resources the entity owns or controls. Split into current (realised within 12 months) and non-current (long-term), per IAS 1.

Sub-Type	Sub-Type 2 line items
Current Assets	Cash and Cash Equivalents · Trade Receivables · Other Receivables · Inventories · Prepaid Expenses · Current Tax Assets · Other Current Assets
Non-Current Assets	Property, Plant and Equipment · Right-of-Use Assets · Intangible Assets · Goodwill · Investments in Associates · Financial Assets · Deferred Tax Assets · Other Non-Current Assets

Liability accounts

Obligations the entity owes. Current liabilities settle within 12 months; non-current are longer-term.

Sub-Type	Sub-Type 2 line items
Current Liabilities	Trade Payables · Other Payables · Accrued Liabilities · Current Borrowings · Deferred Revenue · Current Tax Liabilities · Current Lease Liabilities · Other Current Liabilities
Non-Current Liabilities	Long-Term Borrowings · Non-Current Lease Liabilities · Deferred Tax Liabilities · Provisions · Other Non-Current Liabilities

Equity accounts

The owners’ residual interest in the entity — capital contributed, profits retained, and reserves.

Sub-Type	Sub-Type 2 line items
Contributed Capital	Share Capital · Share Premium · Treasury Shares
Retained Earnings	Retained Earnings · Accumulated Losses
Other Equity Components	Revaluation Reserve · Translation Reserve · Hedging Reserve · Other Reserves

Revenue accounts

Income earned. Operating revenue is your core business income (IFRS 15); other income is incidental or non-operating.

Sub-Type	Sub-Type 2 line items
Operating Revenue	Sales of Goods · Revenue from Services · Rental Income · Subscription Revenue · Other Operating Revenue
Other Income	Interest Income · Dividend Income · Gain on Disposal · Foreign Exchange Gain · Other Non-Operating Income

Expense accounts

Costs incurred. The Sub-Types follow the IAS 1 “function of expense” presentation — cost of sales, operating expenses, finance costs, and other.

Sub-Type	Sub-Type 2 line items
Cost of Sales	Direct Materials · Direct Labour · Manufacturing Overhead · Cost of Services Delivered
Operating Expenses	Selling and Distribution · General and Administrative · Depreciation and Amortisation · Salaries and Benefits · Rent and Occupancy · Marketing and Advertising · Research and Development · Other Operating Expenses
Finance Costs	Interest Expense · Bank Charges · Lease Finance Charges · Foreign Exchange Loss
Other Expenses	Loss on Disposal · Impairment Loss · Income Tax Expense · Other Non-Operating Expenses

The IFRS Category — the regulatory bridge

Where Type → Sub-Type → Sub-Type 2 drives REDA’s own statements, the optional IFRS Category field tags an account against the formal IAS 1 statement-of-financial- position and statement-of-profit-or-loss line items. This is the layer used for statutory reporting and XBRL-style regulatory filing, where the taxonomy must match the standard exactly. The available categories, grouped by statement:

Statement section	IFRS Category values
Assets — Current	Cash and Cash Equivalents · Trade and Other Receivables · Inventories · Current Tax Assets · Other Current Financial Assets · Other Current Non-Financial Assets
Assets — Non-Current	Property, Plant and Equipment · Right-of-Use Assets · Goodwill · Other Intangible Assets · Investments in Associates and JVs · Other Non-Current Financial Assets · Deferred Tax Assets
Liabilities — Current	Trade and Other Current Payables · Current Tax Liabilities · Current Borrowings · Other Current Financial Liabilities · Other Current Non-Financial Liabilities
Liabilities — Non-Current	Non-Current Borrowings · Non-Current Provisions · Deferred Tax Liabilities · Other Non-Current Liabilities
Equity	Issued Capital · Share Premium · Retained Earnings · Other Reserves · Non-Controlling Interests
Profit or Loss	Revenue · Cost of Sales · Other Operating Income · Distribution Costs · Administrative Expenses · Research and Development Costs · Other Operating Expenses · Finance Income · Finance Costs · Income Tax Expense · Profit from Discontinued Operations
Cash Flow	Operating Activities · Investing Activities · Financing Activities

Choose the most specific level that fits You don’t have to use every level — but the more precisely you classify, the better your statements read. Always set Type and Sub-Type. Set Sub-Type 2 wherever a specific line item applies, and set IFRS Category on any account that feeds statutory or regulatory reporting. When in doubt about the IFRS classification, confirm with your auditor or finance controller.

Where to go next

Understanding GL Accounts — where these types are applied.
Creating & Managing GL Accounts — set the type on an account.
Control Accounts (AR & AP) — special sub-types explained.
Cash Flow Categories (IAS 7) — another account classification.
Chart of Accounts Setup Best Practices — apply types consistently.

Frequently asked questions

The lists are dependent. Sub-Type 2 only shows the line items valid for the Sub-Type you picked, and Sub-Type only shows the ones valid for the Type. If an option you expect isn’t there, check the level above it — you may need a different Sub-Type first.

Sub-Type 2 is REDA’s internal line-item taxonomy — it’s what your in-app financial statements group on. IFRS Category is the formal IAS 1 tag used for external statutory and XBRL reporting. They overlap heavily but serve different audiences: one drives your day-to-day reports, the other your regulatory filings.

The classification spine is IFRS-aligned, which maps cleanly to US GAAP for the vast majority of accounts. Where presentation genuinely differs, use a reporting framework to present the same chart under US GAAP — you don’t duplicate accounts to switch standards.

Yes. Sub-Type and Sub-Type 2 are yours to extend — add the line items your reporting requires, and the financial statements will pick them up automatically. The only fixed element is the Type, which stays as shipped. For cross-cutting management views — presenting the same accounts by department, region, or a different standard — account groups and reporting frameworks remain the better tool, since they give you multiple independent views without altering the core taxonomy.

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