> For the complete documentation index, see [llms.txt](https://smartbooks.gitbook.io/smartbooks-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartbooks.gitbook.io/smartbooks-docs/data-models/financial-accounts/adjusting-the-hierarchy.md).

# Adjusting the Hierarchy

## **Rearange by dragging and dropping**

You can change the location and order of general ledger accounts and subfolders simply by clicking, holding, and dragging an item to its desired position within the hierarchy. This feature lets you reorganize your financial structure to better reflect your reporting needs.

## Adding new subtotals

Enhance your hierarchy by creating new subfolders that serve as subtotals.

**Creating a New Subfolder:**

* Click the three dots on the right side of the screen.
* Select **Create Subfolder** to add a new folder under the Profit and Loss or Balance Sheet sections.

**Pop-up Window Fields:**

When creating a new subfolder, a pop-up window appears where you can specify:

* **Code:** A unique identifier for the folder or account to quickly reference it in reports or formulas.
* **Description:** A brief, descriptive name for the folder or account.
* **Type:** Indicates whether the folder or account is classified as income, expense, asset, liability, or general.
* **Source for Planning:** Specifies whether this folder or account will be used in budgeting and forecasting. This setting determines if you create a plan at the subfolder level or at the individual GL account level.

**Subfolders as Subtotals:**

Each subfolder automatically sums the balances of all the GL accounts contained within it. For example, if you want to calculate the product gross margin, create a folder named "Gross Margin" and drag both the revenue and Cost of Goods Sold (COGS) accounts into it, the folder will display the combined total. Similarly, you can create separate subfolders for different personnel cost categories, such as Wages, Social Charges, and Other Personnel Expenses, to display individual totals.