Chart of Accounts

Overview

A chart of accounts(COA) is a must have tool for any company. If you are not familiar with the concept, COA is a list of all accounts that are registered in the EasyERP. They are used to define each class of items and procedures for which money or equivalent is spent or received.

This chart is used to organize the finances of the company and to separate expends, revenue, assets, and liabilities in order to provide best possible information of the financial status of the enterprise.

In the EasyERP Accounting module accounts are defined by an identifier. This means that there can not be two or more accounts with the same number.  Furthermore, you can tell what type of the account is which, just by looking at his identifier. The first two or three digits are the keys, depending on the segregation of your COA. This two or three digits can tell you in which of the accounting categories does this particular account belong. You can create new categories of the COA in the Settings -> Accounting -> Accounting Categories.

So to open up the chart of accounts menu press the corresponding button in the Accounting menu, as you can see here:

EasyERP chart of accounts in menu

When you do so the list of all accounts registered in the EasyERP accounting module will be shown. They are displayed in the form of a table, with next columns:

  • Code - the identification number of an account
  • Account - a short description of the account, it is also its name
  • Currency - this show will display what currency does the account use. Currency is only shown for the real bank accounts, every other account is set to use the default currency of the EasyERP
  • Type - this field will show what accounting category does this particular account belong to.

In the COA menu you have four possible ways to interact with accounts:

  • View, this is self-explanatory, you can remind yourself what accounts are present in your the EasyERP accounting module
  • Creating a new one, you have the power to create your own accounts, according to your company’s needs. We will provide a detailed manual on how to do this here
  • Deleting an account is one of the possible course of action. Like any other entity in the EasyERP, any account can be deleted. You can find further details on how to delete an account here
  • Edit the account. You can change the code, name or the type of an account. To do so tap on the field you want to change and correct it as you want, afterward tap the save button at the top of a table

To change the type of as already existing account in the COA, all you have to do is click on the type of the account, and then reassign it to another accounting category by clicking on it in the drop-down list. To save the changes press the Save button at the top of the table. As an example here is the whole process:

EasyERP chart of account save process

For a more comfortable view of the COA, you can sort all accounts by any field. In order to do so, to sort all accounts by a determined field,  simply press on the column identifier at the top of the menu, to sort the table in a reverse order tap there again.

 

Create an account

In order to correctly do the procedure of accounting in your company using EasyERP Accounting module, you will have to create a lot of accounts, that will define each class of items and procedures for which money or equivalent is spent or received. But at first, you will have to create accounting categories. To do so go to Settings -> Accounting -> Accounting categories.

Now to begin the procedure of creating account tap the New button at the top of the menu. This window will open:

create new category chart of accounts

As you can see there are three fields that you will need to fill in order to create an account:

  • Category
  • Name
  • Code

Account name field is active and ready right after you have pressed the New button. Here you can type in the name of the account. In order to simplify your accounting experience afterward try to create unique and exact names, that will define the source or cash or procedures for which money is spent. The maximum characters allowed for the account name in the EasyERP accounting module is 45.

Account category is selected from the drop down list of all registered in the EasyERP accounting module categories. You can use the search tool at the top of the list if you have trouble finding the necessary category. This option will not only decide to what of your categories will the new one belong but also it determines account’s behavior.

Account code please input the numbers that will represent this account. Note that you can use only digits and only 14 of them. You are free to choose any number you want, but be sure that this number is unique. There cannot be two or more account with the same code, every one must be unique. Also as a good accounting practice, you should name them according to your COA, this means that you use first digits of the corresponding category and then add some to identify your account.

After you have completed all the fields press Create to finalize the creation of an account or Cancel if you want to dismiss any information you have inputted.

create button chart of accounts EasyERP

Delete an account

The process of deleting the account in the EasyERP accounting module is really simple but can lead to a number of difficulties. When you delete an account the system removes it from the COA, but if you have any operations tied up to that account then you will have a problem monitoring those procedures. Because the journal entry will not be deleted, this means that the journal entry will miss one of the accounts. If you are determined that you want to delete an account please make sure that there are no documents in the EasyERP that refer to it.

To delete an account you must do the same actions as with deleting any other entity in the EasyERP. Select an account by tapping on the checkbox to the left of the one you want to remove. Then press the Delete button at the top of the table, here’s an example:

EasyERP chart of accounts delete