How to Setup the Chart of Account in Cloud Accounting System

Created by Shirley Choong, Modified on Tue, 28 Mar 2023 at 12:06 PM by Shirley Choong

 

Scenario: 

 

Discover How to Setup the Chart of Account in Cloud Accounting System before starting to key in any transactions. Read on to learn more.

 

Solution 

 

Chart of Accounts

The Chart of Accounts is a list of all your General Ledger Financial accounts. These are the posting accounts that are used when you make system transactions.

It serves as the backbone of your database because different modules in the system are anchored in Chart of Accounts such as the Accounts Receivables, Accounts Payables, Stocks, Sales and SST, etc.

GL Accounts can be viewed, edited, and deleted by going to General Ledger then click Chart of Accounts under Navigation Pane.

 

(The above and succeeding screenshot is taken from the Sample Company, with pre-defined sample Accounts and transactions.)

 


QNE Chart of Accounts has already defined default structures and Account Titles based on the accounting standards. 

 

In order to view General Ledger Accounts, click the arrow icon beside each Account Type.

 

NOTE: GL Accounts can be setup in multi-level, and allows to be presented up to 3rd-Level in the Balance Sheet Reports and Profit and Loss Reports. 

 

Creating a New GL Account Code

To create new GL Account, click the specific Account Type or Parent Account, then click ‘New’. 

In the Account Entry Form, enter the GL Account Code and Description, assign the Normal Balance whether Debit or Credit, and define the Special Account Type if necessary. 

Special Account Type will not be editable if the GL Account being created is already considered the 2nd Level (Sub Account). It will only adhere to the same Special Account Type as the Parent Account from which it was tagged.

 

About Special Account Type in Cloud Accounting System

Like in the above sample, 101-0000: CASH IN BANK under Account Type: CURRENT ASSETS is a Parent Account which was previously set with ‘Bank Account’ Special Account Type. Thus, all succeeding GL Accounts will be tagged as ‘Bank Account’.

Here are the reference SACs available for each Account Type:

Current Assets:

Bank Account

Cash Account

Debtors Control Account

Purchase tax

Stock Account

Deposit Account

 

Fixed Assets:

Accumulated Depreciation Account

 

Current Liabilities:

Creditors Control Account

Bank Overdraft Account

Sales Tax

Deposit Account

 

Equity:

Accumulated Profit and Loss Account

 

Cost of Sales:

Opening Stock Account

Manufacturing Account

Closing Stock Account

 

In the event that GL Account will no longer be used, Active toggle may be off and it will no longer display it in the Transactions.

Once details are complete, click 'Save' or 'Save and Close'.

 

 

 

Edit and Delete a GL Account Code in Chart of Account

To edit or delete a GL Account, click the 3-dot button as presented below.

 

https://lh3.googleusercontent.com/E3dSng0StdKX8k7OqQfM7Ix7-nAsembcyr4k_ZawpgQk1C-Z7nA0E2gx9f76pgsVxB3Qzqswgae41Z9jl4XTRkOt5_OgBTMu5ROujgPgpF9brepDlLFPN4skDwe-aMFZtCnvgCKzecRz5honZQi4sQ

 


While it allows modification for an existing GL Account, deletion is not allowed once GL Account with existing Sub Ledgers, or when GL Account has already posted a transaction.

 

 

Print and Preview Chart of Account Master Listing

The list of accounts in the Chart of Accounts can be previewed in printable format by clicking the 'Preview' button. 

 


It generates the Chart of Account Listing Report. 

 

Choose to print or export to a different file format if needed.

 

 

NOTES

  1. The Chart of Accounts is a list of all your General Ledger Financial accounts and serves as the Backbones of the company accounting.
  2. GL Accounts can be setup in multi-level, and allows to be presented up to 3 Levels in the Balance Sheet Reports and Profit and Loss Reports.
  3. When creating a GL Account Code, you may define whether the the GL Account is a Special Account Type.
  4. Special Account Type are GL Accounts that serves a certain function in the system, e.g. Cash/Bank Account; Trade Debtor Control Account, and etc.
  5. Deletion is not allowed for GL Account with existing Sub Ledgers, or when GL Account has already posted a transaction.

 

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