If the Ledger Account is a "Lowest level account" that will be used in journal entries (i.e. it is the lowest level account), you must select the "Lowest level account?" check box.
When you check the checkbox, the following fields will be displayed by the System and you must specify them to be used in journal entry transactions.
Note: The sub-level account information will appear as "Data Entry Account" in the "Account Hierarchy" field in the "Account Status" section of the "Accounting Account Information" screen.
Account Category Determination
Based on your Financial Statement Group selection, the appropriate account categories (for example, accounts defined as level 1 in the chart of accounts) will be listed in the "Account Category" drop-down box.
You can choose one of these.
Determining Account Type
Based on your Account Category selection, the appropriate "Account Types" will be listed in the drop-down box.