Dormant Accounts will show you when you have old nominal account codes in Xero that have not been used for a period of time.  The default is 12 months of inactivity but this can be changed in the client settings or through your practice default settings.

Use this check to avoid misposting into account codes that are no longer used.

Once a nominal account code reaches the threshold it will appear in your alerts.

You have two options available:

1. If you are not going to be using this account code Archive the account in Xero and mark as Complete in Hindsight.  This will then not trigger tomorrow.  If you unarchive the account at any point in the future and use it then it will not appear again until a period of inactivity meeting your parameters.
2. ‘Exclude’ the alert using the dropdown arrow on the Complete button.  This will exclude the account from all future checks.  You might use this when you know the account code is not used very often but do not wish to archive it.  We can see above that I would not wish to Archive Intangibles so would exclude it instead.

Note: Hindsight will not show you an account code that has a balance on the account as we would not want you to Archive accounts that have a balance.  This would be the case for account codes such as Share Capital which will not be used often. 

We also exclude any Xero system accounts as these cannot be archived and must be retained to maintain the integrity of the system.  Most account codes denoted with a padlock in your Chart of Accounts will normally symbolise a system account but that is not always the case.  The image below shows an account code that has a padlock because it has a bank rule assigned to that account code.  Inventory would show as locked because it uses tracked inventory.