Creating operative chart of accounts
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This page allows you to create accounts for a unique chart of accounts ID. Tell me more.
Select the “Create Operative Chart of Accounts” link at the bottom of the “Create Operative Chart of Accounts ID” page.
The “Create Operative Chart of Accounts” page appears.
Enter the following field:
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Chart of Accounts ID |
Use the drop-down list box to select the code identifying the chart of accounts ID for which you want to create account codes. All the chart of accounts ID that have been defined in the login company and that have been copied to the login company will be available for selection in the ascending order. |
The system displays the following:
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Description |
The textual description of the selected chart of accounts ID. |
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Zoom facility available | |
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Status |
The status of the chart of accounts. It must be “Active”. |
Enter the following fields in the “Account Definition Details” multiline:
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Account Code |
A unique code identifying the account (Alphanumeric, 32). Mandatory. |
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Description |
A textual description of the account (Alphanumeric, 40). Mandatory. |
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Currency |
Use the drop-down list box to select the code identifying the currency in which the postings must be made in the account. All the currencies that have been assigned to the company will be available for selection in the ascending order. The system displays the base currency of the company by default on launch of the page. |
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Account Group |
Use the drop-down list box to set the group to which the account belongs. You can select from “Assets”, “Liability”, “Capital”, “Revenue” and “Expenses”. The account group is an attribute of the account, which allows it to be grouped. |
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Account Classification |
Use the drop-down list box to select the category to which the account belongs. You can select from “Balance Sheet”, “Income Statement” or “Retained Earnings”. |
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Control Account Type |
Use the drop-down list box to select the type of control account to which the account belongs. You can select from “Supplier Payable”, “Supplier Prepayment”, “Supplier Deposit”, “Customer Receivable”, “Customer Prepayment”, “Customer Deposit”, “Bank Cash PTT”, “Input VAT”, “Output VAT”, “Asset Account”, “Depreciation Account”, “Revalued Depreciation Account”, “Cumulative Depreciation Account”, “Revalued Cumulative Depreciation Account”, “Revaluation Reserve Account”, “Loss on Revaluation Account”, “Gain on Revaluation Account”, “Capital WIP” or “Revaluation Asset”. A control account type allows you to specify the transactions for which an account can be used. When an account is defined to be of a control account type, the transactions that must be posted into the account are channeled through the relevant business component. For example, an account in which the supplier transactions are posted can be of control account type “Supplier Payable”, “Supplier Prepayment” or “Supplier Deposit”. The system displays “Blank” by default on launch of the page. |
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Automatic Posting Account Type |
Use the drop-down list box to select the type of automatic posting account to which the operative account that you want to retrieve belongs. You can select from “Cost of Goods Sold Suspense Account”, "Consignment Stock in Transit Account", “Fixed Asset Suspense Account”, “Freight Control Account”, “Gain on Sale of Asset Account”, “Inter Customer Transfer Account”, “Inter Supplier Transfer Account”, “Item Variance Account”, “Loss on Sale of Asset Account”, “Purchase Stock in Transit Account”, “Purchase Suspense Account”, “Residual Write Off Account”, “Retained Earnings Account”, “Rounding Off Account”, “Sales Stock in Transit Account”, “Scrap Account”, “Stock Suspense Account”, "Stock Transfer SIT Account", “Supplier Suspense Account”, “Trading Stock Account”, or “WIP Adjustment Account”. The system displays blank by default at the launch of the page. |
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Effective Period From |
The starting date from which the account is effective (Date Format). This field must not be left blank if a date is entered in the “Effective Period To” field. The date entered in this field must be after the system date. |
Note: The date entered in this field must be before the date entered in the “Effective Period To” field.
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Effective Period To |
The ending date till which the account is effective (Date Format). The date entered in this field must be after the system date. |
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Consolidation Account Code |
The code identifying the account into which the consolidation of the accounts takes place (Alphanumeric, 32). This account must be effective during the same period as that of the account that is being defined. |
Note: The “Account Group” to which the “Account Code” and the “Consolidation Account Code” belong must be the same.
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Layout Heading |
Use the drop-down list box to select the layout heading to which the account must be mapped. These layout headings lead to form the various financial statements for the company. |
Note: An account must be mapped to a layout heading.
Check the box in the “Select” column of the multiline to mark the account code for attaching or copying to another company.
Click the “Upload Account Code” pushbutton to upload the account codes from an external source or database.
The system retrieves the account codes along with its properties and status from an external database or from an MS-Excel sheet.
Note: If the parameter “Auto Attach Account Codes to Posting Finance Book” is set to “Yes” at the company level, the system updates all the account codes to all the “Posting Finance Books” defined in the login company. If the parameter has been set to “No” the account codes must be updated to the various “Posting Finance Books” manually.
Click the “Create Account Code” pushbutton to create the account codes.
The system saves the details of the account codes and updates the status of the both the Chart of Accounts and the account codes as “Active”.
Note: If the parameter “Auto Attach Account Codes to Posting Finance Book” is set to “Yes” at the company level, the system updates all the account codes to all the “Posting Finance Books” defined in the login company. If the parameter has been set to “No” the account codes must be updated to the various “Posting Finance Books” manually.
To proceed, carry out the following
Select the “Attach / Copy Chart of Accounts to Company” link at the bottom of the page to attach the chart of accounts to a company.
Creating operative chart of accounts – An overview
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You can enter a unique code for the account and also enter the description for it. You can select the currency in which the account entries must be posted. You can set the group and category to which the account belongs. You can also set the type of control account or the posting account to which the account belongs. For every account defined you can enter the period during which it would be effective. The newly defined account can also be mapped to a consolidation account. It also mandatory to attach the account to a layout heading under which it would appear in the financial statement of the company. Multiple accounts can be defined at a time.
This page also allows the system to update the newly created account codes in all the “Posting Finance Books” defined for the company if the parameter “Auto Attach Account Codes to Posting Finance Books” has been set at the company level. You can also upload account details from an external source, which could be a database, an MS-Excel sheet or an XML file.
You can set the group to which the account must belong. An account is grouped based on its attribute. You can group an account as “Assets”, “Liability”, “Capital”, “Revenue” or “Expenditure”.
Set the “Account Group” field to “Assets” to set the account as an “Asset” account.
Set the “Account Group” field to “Liability” to set the account as a “Liability” account.
Set the “Account Group” field to “Capital” to set the account as a “Capital” account.
Set the “Account Group” field to “Revenue” to set the account as a “Revenue” account.
Set the “Account Group” field to “Expenditure” to set the account as an “Expenditure” account.
You can classify the account for any of the financial statements. The details of the account will appear in the selected financial statement. You can classify an account as “Balance Sheet”, “Income Statement”, or “Retained Earnings”.
Set the “Account Classification” field to “Balance Sheet” to classify the account as a “Balance Sheet” account.
Set the “Account Classification” field to “Income Statement” to classify the account as an “Income Statement” account.
Set the “Account Classification” field to “Retained Earnings” to classify the account as a “Retained Earnings” account.
