Defining Chart of Accounts - IRS Software

Defining Chart of Accounts

General Ledger > Chart of Account

  1. The Chart of Accounts is a listing of all accounts used in the general ledger of an organization.
  2. The chart is used to segregate information into an entity’s financial statements.
  3. In an accounting system, chart of accounts (COA) is a financial organizational tool that provides a complete listing of every account.
  4. An account is a unique record for each type of asset/ liability/ equity (Balance Sheet), revenue and expense (Profit & Loss).

To Add Sub/ Child Account

  1. 1. Choose General Ledger > Chart of Account.
  2. 2. Click Add to the Parent Account/ Sub Account (if want to further breakdown).
  3. 3. Enter Account No., Description, 2nd Description, Industry Code, Tax Code, Currency, Choose Special Account Type, check on Cost Centre Required and Deny Journal Direct Post.
  4. 4. Click Save.

Note: Account with Transaction is not allowed to delete.

General Ledger > Chart of Account (View Transaction Summary)

  1. User(s) are allowed to view Transaction Summary Amount in Company Chart of Account.

To View Transaction Summary

  1. 1. Choose General Ledger > Chart of Account.
  2. 2. Define Date on Balance as At.
  3. 3. Transaction amount will show in Balance Column.

General Ledger > Chart of Account (Define Company Chart of Account Detail)

  1. In Company Chart of Account, the user(s) are allowed to define information such as Account No., Description, 2nd description, Industry Code, Special Account Type, Tax Code, and Currency Code for the Sub / Child Account.

Table below are some function for each field:

Special Account Type

  1. Special Account Type is use to reconcile the balance in General Ledger Account.
  2. There are selections of Special Account Type which are Account Receivable/ Account Payable, Assets, Inventory, Bank, Cash, Other Payments.
  3. Refer the following example, there is Sub/ Child Account called Stock under the “Public Bank” Bank Account.

  1. Finally, the user(s) are required to define the Control Account for Inventory which the Amount will refer to Stock in Chart of Account.
  2. Refer to the above Payment Mode Chapter, the user(s) are allowed to create Payment Mode for each Bank. For an example, there is Payment Mode such as Public Bank Cheque and Public Bank E-Banking in Payment Mode Master.

  1. Finally, the user(s) are required to define the Control Account for Public Bank Cheque and Public Bank E-Banking which the Amount will refer to Bank Account in Chart of Account.

Cost Centre Required

  1. Cost Centre can be identified as a department or other unit within an organization to which costs may charge for accounting purpose.
  2. If a company would like to identify the allocation of expenses to which department, they can check on “Cost Centre Required”.

Note: In any Account that had checked on this option, it is compulsory to fill up the cost centre in the transaction entry screen, otherwise the transaction cannot be posted.

Deny Journal Direct Post

  1. Once the user(s) check on Deny Journal Direct Post, the specific account will not show in any GL Transaction.
  2. For an example, Trade Debtor Account is related to Sales and the transaction will come from the source document, which is either from Sales or AR Invoice.

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