The Chart of Account (COA) list is integral to all General Ledger posting functions, balance details and reporting functions. Each chart of account record holds descriptive data and must be assigned to a General Ledger Category.
The Chart of Account code combined with Branch and Division form a ‘General Ledger code’ (or ‘Account Posting code) against which values are posted and held in the General Ledger. Before entering your Chart of Account codes, you must establish the structure for the General Ledger code in the Accounting Format configuration.
Chart of Account code does not define whether an account is a Balance Sheet, P&L or Liability account. That is defined via the General Ledger Category.
Example
For this example, the structure for GL accounts is defined in the Accounting Format with COA having a length of 4, branch length 1 and division length 1.
The range 1000-1999 is reserved for asset accounts, 5000-5999 for expense accounts and 7000-7999 for income accounts. (Note: the account numbering is entirely open and the ranges chosen here are just for the purpose of illustration).
We set up chart of account 1000 for ‘cash at bank’, account 5500 for ‘rent expenses’ and account 7000 for ‘sales income’.
We have 2 branches ‘N’ for New South Wales and ‘W’ for Western Australia, and 1 division ‘9’ for ‘Administration’.
For a $50,000 rental payment for the NSW warehouse and a $800 sale in the WA shop we post:
Dr 5500N9 Rent/NSW/ADM 50,0000
Cr 1000N9 Bank/NSW/ADM 50,0000
Dr 1000N9 Bank/WA/ADM 800
Cr 7000W9 Sales/WA/ADM 800
Minimum Requirements
A Chart of Accounts must be established before any transactions can be entered. A basic Chart of Accounts set is provided with the initial installation of Online Advantage and that can be adapted as required.
Changing Established Data
New COA codes can be added as required. You cannot change the Account Format once you have begun entering transactions however.
You cannot delete a COA Code – however you can transfer it to another code.
Panel Options
- Standard panel features
- Maintenance
- Views
- Audit – lists an audit of data changes made over time to the COA currently being viewed
- Balances – there are various view showing the balance in the account
- Reports
- List Chart of Accounts