Chart of accounts

The chart is the structure the whole system hangs off: which accounts an invoice may use, which are taxed, and how the statements are laid out.

  • Start from a country-specific chart at signup, then edit it freely.
  • Add, rename and reorganise accounts; close one instead of deleting it once it has history.
  • Heading accounts group the detail accounts underneath them on the statements.
  • Each account is linked to what may use it — AR, AP, inventory, income, expense, tax — so the right accounts appear in the right dropdowns.
  • Contra accounts for accumulated depreciation and the like.
  • GIFI codes for statutory reporting where they apply.
  • Set the default accounts once: inventory, income, expense, foreign exchange gain/loss, cash over/short.
  • Departments to report a division separately without a separate chart.

Where to find it System › Chart of Accounts › Add Account  ·  System › Chart of Accounts › List Accounts  ·  System › Departments  ·  System › Defaults

Adding or changing an account

  1. Open System › Chart of Accounts › Add Account, or click an account number in List Accounts to edit it.
  2. Give it a number and description. The number decides where it sorts and which heading it falls under — headings are accounts of type Heading with no postings of their own.
  3. Pick the type: asset, liability, equity, income or expense. Tick Contra for accumulated depreciation and the like.
  4. Tick what may use it. Summary account makes it a control account for AR, AP or inventory. The drop-down boxes decide which screens offer it: an income account ticked for Tracking Items › Income appears on part records, one ticked for AR › Payment appears as a bank account on receipts.
  5. Save. An account with history cannot be deleted; tick Closed instead and it disappears from the drop-downs.
An account record with its drop-down links ticked
Each account declares what may use it.

Defaults and departments

  1. System › Defaults holds the accounts a new part or a foreign-currency payment falls back to: inventory, income, expense, exchange gain/loss, cash over/short.
  2. System › Departments defines cost centres and profit centres. A department can be set on any transaction and every report can be filtered to one.
The default accounts and last-numbers section of the system defaults screen
Defaults: the fallback accounts, and the last number used for every document type.
Chart of accounts listing
The chart — edit it, or start from a country-specific one.
Chart of accounts report with balances
The same chart with balances against it.
Trial balance
Which is where the trial balance comes from.
Department list
Departments report a division without a second chart.

How the chart is read

  1. Every account is either a Heading or an Account. Headings take no postings; they group the accounts under them and subtotal them on the balance sheet and income statement.
  2. A Contra account is shown with its sign reversed on the trial balance — accumulated depreciation under the asset it relates to.
  3. A summary account (AR, AP or Inventory) is a control account: it is offered on transactions in that module and carries the balance the statements report.
  4. Six defaults are mandatory and cannot be deleted once set in System › Defaults: income, expense, inventory, foreign exchange gain, foreign exchange loss, and cash over/short. You also need at least one AR and one AP account.
  5. Renumbering an account is safe at any time: postings stay attached and take the new number.
  6. An account with postings cannot be deleted; tick Closed instead. Tax accounts can double for other percentage-based charges such as commissions.
  7. GIFI codes (System › Chart of Accounts › Add GIFI) are a second numbering that regroups accounts for statutory reporting; every financial report can be run by GIFI instead of account.
Financial statements →

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