Underkonto

Underkonto, in accounting, refers to a subsidiary or sub-account that is linked to a main (parent) account within a chart of accounts. It is used to classify and track individual transactions with greater detail than the primary account allows. Subaccounts enable more granular reporting, budgeting, and cost allocation, while preserving a single balance for the overarching account by aggregating all subaccounts.

Structure and relations: Subaccounts are components of a hierarchical account system. Each underkonto has a unique identifier and belongs to a parent account. In multi-level setups, subaccounts can themselves have child accounts, creating deeper levels of detail. The balances of subaccounts roll up into their parent accounts for financial statements.

Common use cases: Examples include a main revenue account with underkonto categories such as Online sales, Retail sales, and Wholesale. Expenses might be broken down into underkonton like Salaries, Rent, and Marketing. This enables managers to monitor performance by product line, region, department, or project, and to allocate costs accurately.

Impact on reporting and closing: Financial statements reflect aggregated balances for parent accounts, while detailed reports can be filtered or broken down by underkonto. During closing, subaccounts are reconciled and then rolled up into their parents.

Software and governance: Most accounting and ERP systems support underkonto structures. Effective use requires consistent coding schemes, clear governance, and periodic review to avoid over-fragmentation or duplication.