Any account that is set as the default expense account for a vendor should have the core account type of Expense. This is important because it directly affects the way the system behaves when closing the fiscal year.

So, before you set a default expense account, you should ensure that the account is of the expense type by following the steps below:

1. Go to the Accounts list by using the navigation bar to the left of the screen. Expand the Lists section and click Accounts. Find the account you want to use as an expense account.
2. Check that the Account Type column is "Expense." If it is, you can skip the rest of this step, and the next step where we go over correcting the account type.
3. Click on the pencil icon for the account to open the Edit Account screen

If the account type was already set to "Expense" in the previous step, skip this step. Otherwise, you should have clicked on the pencil icon to open the Edit Account screen. On this screen, change the account type to "Expense" and click the blue save button in the lower right-hand corner.

The default expense account is changed from the Edit Vendor screen. You can get there by following the steps below:

1. Go to the Vendor List using the navigation bar on the left hand side of the screen. Expand the Lists section and select "Vendors"
2. Find the Vendor you intend to edit on the list and click the pencil icon on the right of the corresponding row

1. In the field labeled "Default Expense Account," change the value to the account that will be used as the expense account.
2. Click the blue save button in the bottom right-hand corner of the Edit Vendor screen.