Chart of Accounts:

• The Chart of Accounts is a fundamental component in managing financial records within an organization. It serves as the blueprint for organizing accounts (both ledgers and groups) necessary for maintaining accurate books of accounts.
• When you create a company in Xcode ERP, it automatically sets up a basic chart of accounts. However, you can customize it according to your specific needs and legal requirements.
• Key points about the Chart of Accounts:
  • It classifies accounting entries based on statutory requirements (such as tax compliance).
  • Helps answer questions like:
    • What is the organization’s net worth?
    • How much debt has the company taken?
    • What is the profit (and tax liability)?
    • What are the sales and expense breakdowns?
• To access the Chart of Accounts in Xcode ERP, follow this path:
  • Home > Accounting > Accounting Masters > Chart of Accounts
• You can create or modify accounts manually, or use the Chart of Accounts Importer tool to overwrite the existing accounts.

Account Types:

• Accounts are categorized into different types based on their purpose:
  • Income: Accounts related to revenue from sales or services.
  • Expense: Accounts for costs incurred (e.g., salaries, travel expenses).
  • Asset: Accounts representing tangible or intangible assets (e.g., machinery, patents).
  • Liability: Accounts for debts or obligations (e.g., loans, payables).
• Properly classifying accounts ensures accurate financial reporting and analysis.

Transactions:

• In Xcode ERP, accounting operations involve three main transactions:
  • Sales Invoice: Bills raised to customers for products or services provided.
  • Purchase Invoice: Bills received from suppliers for their products or services.
  • Journal Entries: Used for various accounting entries, including payments, credits, and adjustments