This article describes the solution when a user is unable to add a new liability account to their Chart of Accounts because the 'Parent account code' is grayed out and prevents the selection of the correct segment for the liability account.
The procedure described is applicable for adding any other type of account to the Chart of Accounts i.e. Expenses, Revenues, Equity, or Assets Accounts.
A Segmented Chart of Accounts in Everest is set up as a hierarchical tree structure which can be viewed by navigating to Accounting > Chart of Accounts to open the Chart of Accounts browser:
The Liabilities segment can be represented in a partial tree structure as follows:
G - General Account
D - Detail Account
The root segment for all Liability accounts at Level 1 should not have a Parent account, otherwise, no Detail accounts can be created under this segment and this will also manifest as an incorrect Balance Sheet report.
This hierarchy can be confirmed from the database in the COA table:
Notice all the root segment placeholders do not have any parent
Any new Account must be created as a Detail Account under a root segment that does not have a Parent account, otherwise the 'Parent account code' will be greyed out as shown below:
This issue can be corrected by restoring the correct tree structure for the segmented Chart of Accounts by running the following update statement in the database, taking caution to include the ACNT_CODE for the root segments being corrected:
update coa set parent_acnt = NULL where ACNT_CODE in (10000,20000,30000,40000,50000);
The 'Parent account code' dropdown should now be enabled making it possible to successfully add new accounts to the Chart of Accounts without issues.
Attached is a short video explaining how to create a new Liability account in the Chart of Accounts once the above fix is done.