Chart of Account:
As we know that there are 5 main heads of the accounting system namely, Assets, Expense, Liability, Capital and Revenue. Before making or creating a new chart of accounts, we have to decide that we should also keep stock of the items that we are buying. For example raw material or finished goods. If that item is resold or or if we are making new items with that new item then its supplier. If we are selling those items which are our business products then it will be a customer. Rest of all will come under chart of account. For example, if we are selling or buying any asset such as a car, plot, old AC etc. Before making any new head in chart of account, we have to check the current list of chart of account in the daily output report and take a printout of it. Then we have to check and decide where our New head will ideally fit at 4th level. Few examples, if it’s cash/ bank then it will be created under the head of bank/ cash. Petty Cash will come under the head of expense. If it’s any land, building, machinery, A/C or Computers then it will come under a particular Asset head i.e current asset or fixed asset. Similarly if there is a New expense head then we have to check which type of particular expense it is. For example, auditor fees, lawyer fees, day to day variable operating expense, fixed expense, administrative expense which is not related to direct sales, selling expense or marketing expense etc.
The first step before making a new chart of account is to check whether that accounting head already exists in the system or not. This option helps us to check the existing Chart of Account in the system in order to avoid duplication. Go to Accounts, then click on Daily Outputs and then on Chart of Account.
There are various options to check the existing accounting heads which are presently available in the system. You can check them by 1. Sort by Code. 2. Ide 4th level. 3. Sort by Title.
Now you may choose any one of them in order to check the existing accounting heads present in the system and then click on the Blue Print button to view them.
Sort by Code:
Click on the Sort by Code option.
Now click on the Blue Print button.
A new window will appear with Save / Print options and showing all Chart of Account heads currently existing in the system.
Sort by Title:
Click on the Sort by Title option.
Now click on the Blue Print button.
A new window will appear with Save / Print options and showing all Chart of Account heads currently existing in the system.
Ide 4th Level:
Click on the ide 4th level option.
Now click on the Blue Print button.
A new window will appear with Save / Print options and showing all Chart of Account heads currently existing in the system.
