Create Operative Chart of Accounts – A summary of the activity

This activity allows you to define the operative chart of accounts for a company. An “Operative Chart of Accounts” represents a structure that consists of various account codes through which transactions can be recorded. An operative chart of accounts is created as an individual entity and then assigned to a company. There can be only one operative chart of accounts for a company. The company that has created the chart of account can also modify the structure. This chart of accounts can also be copied to companies. Once the structure has been copied, you can modify the existing structure of accounts by adding a new account or modifying the property of an account.

You can define a unique chart of accounts ID and also define multiple accounts that comprise it. You can set unique properties for every account created.  A layout heading must be defined if you want to use of the standard Financial Statement layouts available in the system. You can classify the account for a financial statement, that is “Balance Sheet”, “Income Statement” or “Retained Earnings”. An account can also be categorized as an “Asset” account, “Liability” account, “Revenue” account, “Capital” account or an “Expenditure” account. You can also define the type of the control account or the type of the posting account to which the account belongs.

Getting familiar with the pages inside

What you can do in this activity

Create operative chart of accounts

Create account codes

Attach a chart of account to a company

Copy a chart of account to a company

Create operative chart of accounts

“Operative” chart of accounts is created to define the structure of the account codes in which the transactions can be posted. The newly created chart of account is assigned to a company.

•  Go to “Create Operative Chart of Account ID” page.

•  Create the operative chart of account ID.

Create account codes

Account codes are defined for the chart of accounts ID that has been created. An account code can be classified and categorized based on the financial statements for which it would be required. The currency in which the financial postings must be made in the account can also be defined. An account code is also mapped to a consolidation account and a layout heading.

•  Go to “Create Operative Chart of Accounts” page.

•  Create the operative account codes.

Attach a chart of account to a company

Account codes that have been defined for a parent company can be attached to the subsidiary companies. The system attaches the entire chart of accounts or the selected account codes to the company.

•  Go to “Attach / Copy Operative Chart of Accounts to Company” page.

•  Select the company to which the chart of accounts must be attached.

Copy a chart of account to a company

Account codes that have been defined can be copied to the companies. The system copies the entire chart of accounts or the selected account codes to the selected company.

•  Go to “Attach / Copy Operative Chart of Accounts to Company” page.

•  Select the company to which the chart of accounts must be copied.