Chart of Account is the core of the Financial Accounting. All the voucher postings and financial reporting is based on the structure of Chart of Accounts. Chart of Accounts is divided into certain levels. This leveling of accounts help the management to get the transactional effect of an account at different stages. All the Voucher postings and other Transactions would be mapped on the Transactional Level of this Chart of Accounts. So it is necessary to provide all the levels in order to operate an account. The system is flexible enough to set the levels from 2 to 9, depending upon the company structure and required level of information. The user may also define the Depreciation percentage (%) on Assets, which would be revalued at the end of year.
- Here the user would define the Chart of Accounts of the Company.
- The Chart of Account Level could be between 2 to 9.
- Each Main Level would be categorized as one of the following Accounting Types:
- Acc. Depreciation (Accumulated Depreciation)
- It is necessary to save the Main Level first, in order to define its sub levels.
- On saving of the main level, the sub sequent levels could be entered simultaneously and saved at once.
- The Details of an account or any notes related to that account can also be added here.
- The Depreciation percentage (%) could be mapped on the Assets Type of Accounts.
- The Depreciation lookup would only show the Accounts with Type ‘Acc. Depreciation’.
- The lookup Button allows to search Chart of Account at any particular level. On selecting a Chart of Account at certain level, its parents level (if any) would be loaded automatically and its sub levels lookup would show only the sub levels of Chart of Accounts defined under this selected Account.
- The delete Button allows to delete the subsequent Chart of Account, only if no sub level is defined under this level and no Voucher Posting/Transaction is made for this Account (only applicable if deleting the Transaction Level of Accounts).
- The Edit button allows to Edit the name of an Account at certain level. The name would be edited on saving the record.
- ▪ Short key for save is Alt+S, Alt+R for refresh the screen, Alt+R for printing the complete Chart of Account and Alt+X for exiting the form.
It is a user definable Code. The Code length at any level is predefined and would be set according to the requirement of the company. On defining a new code, the system suggests the next available code at this particular level but its not fixed and is changeable to the user’s requirement.
The Description field is used to describe an Account and is also known as the Account’s Title. It is a 255 character Length Alpha-Numeric field.
The lookup Button allows to search Chart of Account at any particular level. On selecting a Chart of Account at certain level, its parents level (if any) would be loaded automatically and its sub levels lookup would show only the sub levels of Chart of Accounts defined under this selected Account.
The delete Button allows to delete the subsequent Chart of Account, only if no sub level is defined under this level and no Voucher Posting/Transaction is made for this Account (only applicable if deleting the Transaction Level of Accounts).
Account Description Edit
The Edit button allows to Edit the name of an Account at certain level. The name would be edited on saving the record.
This is the 255 character Length Multi-line Alpha-Numeric field for providing the details/notes for an account.
A Main Account can be classified as either of the following Accounting Categories:
- Acc. Depreciation (Accumulated Depreciation)
These Accounting Classifications are the main categories of the Financial Reporting and they organize the information in a way to get the Balance Sheet, Profit and Loss Statements, Cash Flow Statements etc.
The Depreciation is only allowed on the Asset Type of Accounts and is mapped at the Transactional level. The Transactional Account would be depreciated at the provided percentage (%) at the year closing. The effect of Depreciation would be stored in the Depreciation Account mapped here.
This is the Depreciation percentage (%) for depreciating the Asset Account at year end.
This is the Depreciation Account mapped with the Asset Account for transferring the effect of amount depreciated at the year end. The user can search the Depreciation Account from the lookup. Please note that the lookup would only show the Accounts with the Type Acc. Depreciation.
Save button would save the new Chart of Account Entry or Edit any changes to previously recorded Chart of Accounts in the database permanently.
Refresh button will clear the entries of the form and will point to the new 2nd last level.
The print button would preview the complete Chart of Account List. This list can be printed on the required printer on pressing the Print button at upper left corner.
Exit button is used to close the form.