Chart of Accounts (COA)

The Chart of Accounts module lists all your company’s "accounts" together in one place. It provides an overview of every aspect of your business, encompassing both expenditures and revenue generation. The main account types include Revenue, Expenses, Assets, Liabilities, and Equity.

The chart of accounts is intended to provide a map of your company and its numerous financial components.

This module also gives you a summary of each account, along with the account balance.

Creating an Account

An Account is used to track a set of transactions in the form of Debits and Credits. There can be many types of Accounts including Bank, Income, Expense, Asset, Equity, Payable, Receivable, etc. Use the ‘Account’ module to create or update an Account.

All the accounts created in the system will be listed in the Chart of Accounts module. Once an account has been created, it can be used for transactions.

To create an account, go to Menu > Accounting > Accounts > Account

To create an account, enter the essential information such as the account type, entry type, account name, currency, code, etc. You can also choose to make the account inactive or block transaction posting for the account as well.

Field	Description
Active	If the toggle is ON, the account will be active, allowing you to use it. Accounts are active by default upon creation. You can use this option to disable the account when you no longer wish to use it.
Block Transaction Posting	Turn on this toggle if no more records are to be Posted in the Account.
Account Type	This field allows you to set the account type such as a Bank, Asset, & Expense.
Entry Type	Select whether the account is of the type Debit/Credit/Both. The Type will be auto-selected for this account in the Journal Entry module.
Account Name	Give a name to the account. This name will appear in all its transactions moving forward.
Description	This describes what the account is used for.
Currency Code	Select the currency of the account.
G/L Account Code	Enter the General Ledger Code, often used as a 4-digit number, to associated with the account.
Is Sub Account Of?	If this account is a sub-account, enable this toggle and select its parent account.
Opening Balance	Enter a positive or negative number here if the account has an Opening Balance. This will automatically generate a Journal Entry when the account is first created.
Opening Balance Date	If there is an opening balance, set the Opening Balance Date.
Opening Balance Entity	If there is an opening balance, select an entity here to attach.
Opening Balance Offset	If there is an opening balance, select an offsetting account for the Journal Entry transaction.
Is Inter Company Account?	Turn on the toggle if it is Inter Company Account. Intercompany accounting involves recording financial transactions between different legal entities within the same parent company.

After entering all the necessary details, click "Save" to create the account.

Bank Transfer Info

Once an account is created, a new tab named "Bank Transfer Info" becomes available in the Account module. This feature is designed to facilitate seamless payments to vendors using banks.

Selecting Bank Transfer Types

In the "Bank Transfer Info" tab, you will begin by choosing the "Bank Transfer Type" based on the preferred method of making payments to the vendor. There are two primary options available:

1. ABA

2. RBC Standard 152

ABA

An ABA number (also known as routing number or routing transfer number) is a sequence of nine numeric characters used by banks to identify specific financial institutions within the United States.

To utilize the ABA bank transfer type, you'll need to provide the following information:

• Name: Enter the name associated with the bank account.

• Account Number: Enter the unique identifier for the vendor's bank account.

• BSB Code: Enter the Bank-State-Branch code, used to identify the vendor's bank branch. Please use the (999-999) format for this code.

• Bank Code: Enter the 3-digit code assigned to the vendor's bank.

• APCA Number: Enter the APCA number, used for processing electronic payments.

RBC Standard 152

To utilize the RBC Standard 152 bank transfer type, you'll need to provide the following information:

• Name: Enter the name of the account holder at the bank.

• Client/Account Number: Enter the unique number assigned to the client’s account at the Royal Bank of Canada.

After entering the details, click "Save" to update the details.

Setting Up Bank Transfer Information for Vendors

After selecting your preferred bank transfer type and filling in the required fields, the next step is setting the vendor's bank transfer information.

Open the vendor details and add the Bank Transfer Information in the “Bank Transfer Info” tab of the Vendor details. This step enables you to utilize the bank transfer information for future payments.

Making Payments and Generating Bank Transfer Details

After saving the details, you can proceed to the Bill payment module. Select the vendor to be paid with the bank transfer and choose the account to be used to make the Payment. Then, you can pay the bill.

Once the bill payment is completed, you can navigate to the Bill Payment Centre. Select the Bill and from the Options, choose “Generate Bank Transfer Detail” to view the bank transfer details.

Deactivating an Account

XoroERP allows you to deactivate an account. To deactivate an account, open the account from the chart of accounts and disable the "Active" toggle at the top-right corner of the module.

Please note that only accounts with no transaction or zero balance can be deactivated.