The Chart of Accounts is the list of all the accounts used to record financial transactions in the general ledger of an organization.

Setting up new accounts

A default chart of accounts is automatically created depending on the country you choose during the signup process.

To create a new account, go to Accounting -> Configuration -> Chart of Accounts, click on the Create button. The fields in the form are explained below:

Code and Name

Each account is identified by its Code and Name. It is recommended to choose a name and code that best describes the purpose of the account.

Type

The Account Type determines the purpose and behavior of the account.

Default Taxes

The Default tax will be applied when this account is chosen for a sale or purchase.

Tags

Some accounting reports support filtering based on the tags specified in the account.

Account Groups

Account Groups are useful for grouping and consolidating multiple accounts under a parent account. To create a new Account Group, open the account you want to configure as sub-account, click on the Group drop-down selector, select Create and Edit…, fill out the form, and save. An account group once created can be reused on multiple sub-accounts.

Allow Reconciliation

For an account to be considered during payments matching or reconciliation enable the Allow Reconciliation option. Examples of such accounts include receivable and payable accounts.

Deprecated

To restrict an account from being used for future journal entries, enable the Deprecated option.