Chart of Account

Chart of Account

This form is used for defining General Ledger accounts. Ledger accounts must first be defined before any financial transaction using that account can be processed.

 Account numbers are treated by the system as alphanumeric. This means that you can enter any character as account number. You may enter all numeric digits, or you may also choose to enter only letters. Most likely, however, is you may enter a combination of digits and letters for some account numbers.

There are a few rules in constructing a valid Chart of Accounts. Basically, this is in terms of sequencing the account numbers according to where each account logically belongs to. The requirement is that all Balance Sheet accounts must have a lower number than Profit and Loss Accounts. The decision of whether an account is a Balance Sheet or a Profit and Loss account is entirely a user (or, rather, the Accountant's) issue.

 

 

 

Explanation of Fields

 

Account No.

 

Required. Capslock.

 

Authorized

 

Checked means that this account is active. Only active accounts can be used in transaction processing.

 

Default to active.

 

Account Name

 

Required.

 

Normal Sign

 

Default to Debit.

 

Account Type

 

Either as "Asset", "Liability", "Capital", "Income" or "Expense"

 

Currency Code

 

Optional. Capslock. This field is used for restricting the currencies that can be used for a particular account.

 

If a user specifies a currency for a particular account, it means that transactions of this account will only be in this currency which has been specified.

 

Posting Account

 

Define whether it is an Account for Posting. Default to Yes

 

Bank Account

 

Define whether it is a Bank Account. Default to No.

 

 

 

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