Chart of Accounts
Chart of Accounts is used to refer to the organization of all accounts in a financial system.
Navigate to the chart of accounts from the Sidebar:
Setup > Chart of Accounts
Organization of Accounts
There are two types of accounts in the Chart of Accounts
- Ledger Accounts: Accounts that are used in the transactional entries and that appear in the General Ledger.
- Group Accounts: Accounts that are used to group other Group and Ledger accounts.
At the upper most level there are 4 Group Accounts. These can be thought of as the Root Accounts. These Root Accounts have all the other accounts grouped underneath them.
Number of Root Accounts
The number of Root Accounts depends on your country's CoA.
For example: The Indian CoA has only 4. Whereas the Standard Chart of Accounts has 5.
Each Root Account is either a Credit or a Debit account. If a Root Account is a Credit account all the accounts underneath it will also be a Credit Account. (Credit and Debit)
Clicking on a Root Account will reveal the accounts other it. This goes for the other Group Accounts too.
Clicking on a Ledger Account will open that accounts Quick Edit Form where the details of the account can be viewed.
Creating a New Account
To create a new account
- Hover over a Group Account
- Click on Add Account or Add Group
This will display a new row where you can enter the account name. After you are done press Save to create the account.