FrontAccounting forum — Level of Chart of Account

Re: Level of Chart of Account

null@example.com (echoes28) — Wed, 10 Sep 2008 13:55:36 +0000

thank's for your advice and tip Joe...i will try it......perhaps i will asking frequently, so i hope you don't get annoyed by me ....GREAT JOB on the software by the way...

Re: Level of Chart of Account

null@example.com (joe) — Wed, 10 Sep 2008 13:12:21 +0000

And just think of the dimensions as a subaccount in this matter. But the dimension are much more powerful. Using dimensions you can get balance sheets/income statements for a local dimension or for a group of dimension 1 (if you use 2 dimensions on a transaction line).
So you can keep your internal accounting by department - cost centres. I mean for a total department or a costcentre inside the department. So you see this approach is much more flexible.

/Joe

Re: Level of Chart of Account

null@example.com (joe) — Wed, 10 Sep 2008 13:08:28 +0000

Yes and no. You can just let the account code be 101111 Cash Sanur Mr.X. Your reports will be sufficient enough anyhow. Use the groups wisely. You can have as many groups as you like for this, but try to make it easy to understand.
The account_code2 is on another separate level.
And if you need detailed, yes use the dimensions.

/Joe

Re: Level of Chart of Account

null@example.com (echoes28) — Wed, 10 Sep 2008 12:07:06 +0000

Thx Joe...actually that's what i'd like to ask about....so from your example..can you break down the detail:
1000 Cash -> will be GROUP of ACCOUNT
1010 Cash Jakarta and 1011 CAsh Bali -> will be Account Code
10111 Cash Sanur -> will be Account Code 2
am i correct??
if it is..what if i like to make :
10111.1 Cash Sanur Mr.X
do i need dimension?...or can i make it somehow?

thks for your help

Re: Level of Chart of Account

null@example.com (joe) — Wed, 10 Sep 2008 11:29:53 +0000

FrontAccounting is built up from Account classes, account groups (or types) and accounts. So a single account belongs to a group and a group belongs to a class. This way it is easy to build balance sheets and income sheets. How you build the accounts is up to you.
Certain countries use this:

1000 Cash
1010 Cash Jakarta
1011 Cash Bali
10111 Cash Sanur
and so on.

Without building these as subaccounts, which is not necessary when you use a modern SQL tool like MySQL. Instead companies use dimentions to get detailed (internal) accounting for projects, cost centres and departments aso.
Some tax authorities in certain countries insist on having a special code for calculating taxes in their own way. The account_code2 is used in these cases but it is a total free field, and if your tax authorities do not demand this, you can either ignore it or use it for your own need.

/Joe

Re: Level of Chart of Account

null@example.com (echoes28) — Wed, 10 Sep 2008 07:14:23 +0000

thank you for the answer...but what i want to know actually..how many sub group an i make for chart of account..correct me if i'm wrong, in the program you can make :
group of account which has a sub group...can i make another sub group which refer to the first sub group..sorry if i confused you perhaps my english not very good cause is not my mother tongue..i'm from indonesia actually....thank you for your time

sorry i will change the question..what is the purpose of account code2 if we want to create new gl account?..thanks

Re: Level of Chart of Account

null@example.com (joe) — Wed, 10 Sep 2008 06:57:05 +0000

You are free to build your account just like you wish. There are a total of max 11 characters in the account code field. You can build with or without a point in the account. Just remember to set the chart_of_accounts to be alphanumeric in config.php if you with to use non-digits in your account code.
If you need a detailed accounting, consider using the dimensions instead. Look in the dimension forum for more info.

/Joe

Re: Level of Chart of Account

null@example.com (echoes28) — Tue, 09 Sep 2008 23:45:36 +0000

sorry if i'm confused you..perhaps the terms is different...what i mean is..usually gl have several layer, for example:
101 cash
101.1 cash on bank
101.1.2 cash on bank x
101.1.2.1 cash on bank x of mr.Y....and so on...
this is what i asking actually, how many level? thank you for your response...this software pretty interesting to me

Re: Level of Chart of Account

null@example.com (joe) — Tue, 09 Sep 2008 23:22:43 +0000

I'm not sure if I understand your question? If you mean which type of accounts, the answer is that we only have the provided ones that can be downloaded in the download section. You can select a fresh chart, like en_US-new.sql that comes with the core installation and create one that suits your need. Delete not needed accounts and create your own. Then you can make a backup of this and download it and use it in future companies. In that case, make sure the table prefix is set to 0_ before all the tables.

/Joe

Level of Chart of Account

null@example.com (echoes28) — Tue, 09 Sep 2008 22:19:40 +0000

how many level of Chart of Account actually the frontaccounting provided?and is it possible to add a level for the Chart of Account...thank you for the answer