• From: UAE
  • Registered: 08/14/2008
  • Posts: 82

Topic: The way of designing the general ledger , accounts , groups , classes

Today when I'm working in FrontAccounting I realized that the questions asked when I'm creating new class is not enough to know more details about the classes of accounts
first of all the only question available you can find in the section of accounts classes which asking you is this class belong to balance sheet of profit and loss , normally we are answering this question by yes for assets and liabilities and owner's equity or capital and no for revenues and expenses , but in case I change the sequence of the classes and create it like this
1- assets
2- expenses
3- revenues
4- liabilities
the question here do the generated reports will be in a good shape ?

I don't think so , because for the developing purposes of the financial solutions the developer when designing the solution must take care about the needs related to the balance sheet and income statement and cash flow statement

I can assure that the reports depend on a fixed data which included in the original chart of accounts , I mean when they designed the queries they knew that the class of assets must be no. 1 and the class of liabilities must be 2 etc.

so to improve this we have to mention another question like this
is this class related to assets or liabilities or capital ? this will serve the balance sheet report
and if we intend to design cash flow statement we have to ask more questions etc.

and also the developers must take care about the flexibility of the solution and I don't think that every time any user will change the chart of accounts you will release new version of FrontAccounting !!

Best regards

Abdelhamid M. Abdelhamid - Partner & Managing Director
Abdelhamid & Co Certified Public Accountants & Auditors - UAE - Sharjah
(ACPA & IACPA) - (International Arab Certified Public Accountant)- IASCA Fellow Member
Mobile "WhatsApp" : +971 50 7948028
  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: The way of designing the general ledger , accounts , groups , classes

Hello,
I don't see the problem here. When retrieving the SQL it will only get the appropriate date. F.i. a Balance
sheet will only show accounts that are belonging to a group that are belonging to a class that are belonging to a balance sheet.

/Joe

  • From: UAE
  • Registered: 08/14/2008
  • Posts: 82

Re: The way of designing the general ledger , accounts , groups , classes

joe wrote:

Hello,
I don't see the problem here. When retrieving the SQL it will only get the appropriate date. F.i. a Balance
sheet will only show accounts that are belonging to a group that are belonging to a class that are belonging to a balance sheet.

/Joe

great , but what about inside balance sheet , you have to complete the belonging journey that you start by adding that it might be belonging to assets side or that it might be belonging to capital and liabilities side !!

Abdelhamid M. Abdelhamid - Partner & Managing Director
Abdelhamid & Co Certified Public Accountants & Auditors - UAE - Sharjah
(ACPA & IACPA) - (International Arab Certified Public Accountant)- IASCA Fellow Member
Mobile "WhatsApp" : +971 50 7948028
  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: The way of designing the general ledger , accounts , groups , classes

No not exactly, but I am going to fix it today, so you can have multiple suplevels. There will only be a restriction that an account belonging to a type that is belonging to another type. A type that belongs to another type must belong to inside the same type no. F.i.
Type 10 Short terms assets  Do not belong to another type
Type 12 Petty Cash. Belong to type 10.
Type 14 Cash Default Location. Belong to type 12.
Type 20 Long terms assets.

I hope you see the meaning of this. It is now reasonable simple to go through a level accumulating.

As I said, I will fix release 2.1.2 to manage this today. Hopefully it is ready during the day.

/Joe