15.16.1.5 Chart of accounts

The Chart of Accounts (COA) section allows you to define the accounts used by the accounting system to classify financial transactions and generate financial statements.

To edit an account, click its Id, Code, or Description in the list.

Field Descriptions

Account Type: Specifies the category to which the account belongs.

• Assets: Resources owned or controlled by the company that are expected to provide future economic benefits.

• Liabilities: Obligations owed by the company to third parties, such as suppliers, lenders, or customers who have made advance payments.

• Memorandum Accounts: Special accounts used to offset or adjust the value of related asset, liability, revenue, or expense accounts. These accounts are commonly referred to as contra accounts in accounting terminology.

• Costs (Expenses): Amounts incurred in the operation of the business. Under the accrual basis of accounting, expenses are recognized when they are incurred, regardless of when payment is made.

• Revenues (Income): Amounts earned from providing services or selling goods. Under the accrual basis of accounting, revenues are recognized when they are earned, regardless of when payment is received.

Code: The account identification code, based on the following numbering convention:

• Ledger: A two-digit number identifying the ledger category to which the account belongs (for example, 01 = Assets, 02 = Liabilities, ...).

• Account: A two-digit number identifying the main account within the selected ledger category.

• Sub-Account: A four-digit number identifying a specific subdivision of the account.

Note: For a more detailed chart of accounts, it is recommended to use as many digits as practical and to leave gaps in the numbering sequence. This approach makes it easier to add new accounts later while maintaining a logical account structure.

Related EEC Code: If the account is associated with a European Economic Community (EEC) account, specify the extended code using the following format:

[TT]-[Type]-[Ledger]-[Account]-[Sub-Account]

Description: A brief description of the account.

Valid until: Specifies the date until which the account remains active in the Chart of Accounts. Accounts that have passed their validity date are hidden by default and can only be displayed using the appropriate function.