Accounting and financial		Managementof the journals

The Chart of Accounts

While installing the software, the Chart of Account by default is loaded. That one is available in the module l10n_simple. If, during this installation process, you want to take in account your own country's Chart of Accounts and taxes, instead of default ones, you have to deactivate the module l10n_simple then activate the module l10n_xx, where xx is the code of your country (l10n_fr for the french Chart of Accounts).

You can browse your Chart of Accounts with the menu option : Financial Management > Charts > Accounts Charts.

The structure of the Chart of Accounts is hierarchical, vith accounts of the type 'view' to only print sub-totals or propose a centralization level. So you can develop each account as you want in order to only select later the elements that you want analyzing.

Just double-click on an account to analyze its transactions. You can also select one or several accounts then press the icon 'Print' to print a report. The software will propose two choices for the selected accounts :

• Account Balance
• General Ledger

Browsing the Chart of Accounts can take some seconds because Tiny ERP computes in real time the debit, credit and balance for each account. If you only want working on the Chart of Accounts without these figures you can use the option menu : Financial Management > Charts > Accounts Charts > Fast Account Chart.

Accounts setup

For adding, updating or deleting existing accounts, use the option menu : Financial Management > Definitions > General Accounts > Accounts Definition. For updating or deleting an account, first select it with the Finder, then you can update the respective fields.

Here below is the meaning of each account field :

• Name: The account name is multi-language, it's why there is a flag on its right. You can indicate what you want as account name.

• Active: You can deactivate an account, it will be no more visible in the Chart of Accounts, but you will be able to reactivate it later.

• Account Type: The accounts types determine the accounts that can be used for every journal. By defaults the availables codes are the following: View, Receivable, Payable, Income, Expense, Tax, Cash, Asset, Equity. You can also add new types with the menu option : Financial Management > Definitions > General Accounts > Account Types. Use the type 'View' for the accounts only used for structuring the Chart of Accounts and for which it's not possible to have any transaction.

• Code: The account code. There is no limit about the digits number. Use the code 0 for every account which is on the root.

• Currency: the currency by default, secondary, of this account.

• Deferral Method: Determines how the accounts and their transactions are treated by the end of year closing. Four methods are available :
  • Balance: One transaction is generated for the balance to stay unchanged in the new year opening balance (generally used for the bank accounts).
  • Detail: All the transactions are kept in the new opening balance.
  • None: The balance is null in the opening balance (generally for classes related to expenses and income).
  • Unreconciled: the only unreconciled transactions are kept in the new year opening balance (generally used for the receivables or payables).

• Reconcile: Determines if the account transactions can be matched (invoices for example).

• Parents: Determines which is the parent account in the Chart of Accounts.

• Default Taxes: Determines which are the taxes by default to use while processing sale or purchase transactions on this account. Used for automatically generate taxes transactions for manual entries in a journal.

The virtual Charts of Accounts

The Chart of Accounts structure has a legal aspect, because fixed by the administration of each country. Unfortunately that structure generally not corresponds to the enterprise view expected by the executive manager.

It's why the concept of virtual Chart of Accounts has been introduced into Tiny ERP. This concept allows, without any additional effort, to manage several Charts of Accounts, on the basis of the same transactions. In this way, the main Chart of Accounts is the one fixed by the administration, and the executive manager can create as many virtual charts as needed, based on the general Chart of Accounts.

To create a such new chart of accounts, you have to create an account in the root with the option menu : Financial Management > Definitions > General Accounts > Accounts Definition. Don't forget as explained above to set the code to '0' and the Account type to 'View'. Then you can create your new structure with as many accounts as needed.

You can verify your virtual structure with the menu option : Financial Management > Charts > Accounts Charts.

Finally, once the structure is created, what is remaining is to link the interesting genaral accounts to your new virtual Chart of Accounts. For that, you just have to update their field 'Parents' : add as many parents as needed.

Thus, you can browse your main Chart of Accounts but the virtual plans giving an other view of the enterprise too. Every available wizard or report can apply to both Charts of Accounts kinds, main or virtual, in the same way.

Finally, you can also create virtual Charts of Accounts, based on other virtual Charts of Accounts, for a building at a second degree.

You can apply this virtual accounts concept for granting restricted access rights to certain users or shops.

Accounting and financial		Managementof the journals