Chart of Accounts
What is a Chart of Accounts?
The Chart of Accounts is used to organize the finances of a company and to separate expenditures, revenue, assets, and liabilities in order to provide the best possible information about the financial status of the enterprise. A Chart of Accounts (COA) is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances of the entity and to segregate expenditures, revenue, assets, and liabilities in order to give interested parties a better understanding of the financial health of the entity. The overall structure of COA is based on a system of double entry accounting that has become a standard all over the world to quantify how a company is doing financially. A chart of accounts is a list of accounts used to categorize the financial transactions of a business.
A chart of accounts usually consists of - Assets, Liabilities, Equity, Income, and Expenses. Some companies segregate their transactions into the additional segments of Cost of Goods Sold, Advertising Costs, General and Administrative Expenses, Other Expenses, Other Income, and Taxes. But by designing your chart of accounts with the financial analysis of your company in mind, you will be able to see just where your profits are coming from and where your expenses need to be examined
Understanding how ERP2ALL’s Chart of Accounts works
ERP2ALL acts as the main financial backbone for all areas and has the ability to make the most of the efficiency and update the flow of information across an organisation which can help an organization to combine all of the information and processes into a single integrated system and to arrange all important management functions such as customer relations, human resources, purchases, production, accounting, and finance. All Accounts will be listed in a tree view with 4 individual Parent folders:
ERP2ALL’s Accounting & Finance module's COA is designed considering simplicity, flexibility, usefulness in a tree structure having a parent-child relationship for better classification and grouping.
Users can define COA as per their choice down to as many as level seems appropriate to them. The COA can be picked from a standard COA inbuilt in ERP2ALL or may be defined by the user like you.
Please set up your chart of accounts before you start Accounting Entries
Tree View Parent and Child Items
- Any item in a tree-view can have a list of sub-items called child items associated with it.
- An item that has one or more child items is called a parent item.
- A child item is displayed below its parent item and is indented to indicate that it is subordinate to the parent.
- An item that has no parent appears at the top of the hierarchy and is called a root item.
To Access the Chart of Accounts:
Go to AF (Accounting & Finance), Then click on Chart of Accounts.
The landing page will be displayed as shown below:
To view the details:
Click on the "Expand ALL" buttons to display the details in the General ledger.
For a Brief overview:
Click on the "Collapse ALL" button to revert to an initial brief overview.
To Search for a nominal:
To Search for a Nominal in the chart of accounts,
Type the name of the Nominal in the search box option (right of the screen)
The search results will be highlighted and displayed.
To Create a Child:
Note: A child cannot be added if it's declared & posted to the ledger.
Click on the Add Child button.
The new Child details screen will be displayed.
Enter the Name/title
Click on Save to insert & update the new child
Select a Child item from the COA list & Click on the Rename button.
The Rename details will be displayed
Click on Save to update the modified name/title change.
Select a Child item from the list & Click on the Delete button.
Select a Child item (folder /group) & Click on the View Ledger button.
Users can customize Search preferences individually (Options: by From & TO date, months, years, days & present date) & then click on the Search button to execute.
The Child item ledger details will be displayed as shown below:
Click on Document/Voucher number (Doc/Voucher No.) to view as shown below:
The payment voucher will be displayed after clicking on /Voucher number (Doc/Voucher No.):