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📊 Chart of Accounts in VinAR-ERP

The Chart of Accounts (CoA) is the foundation of your company's financial structure. It organizes all financial transactions using the double-entry accounting system, which is a global standard for tracking a company’s financial health.

VinAR-ERP provides a pre-configured Chart of Accounts for each company, but you can modify it to meet your specific business and legal needs.

🔹 Why is the Chart of Accounts Important?

The Chart of Accounts helps answer key financial questions:

✅ What is your company worth?
✅ How much debt do you have?
✅ How much profit are you making?
✅ How much are you selling?
✅ What are your main expenses?

If you are new to accounting, it’s a great time to start learning! You can also work with an accountant to set up your Chart of Accounts.

🛠️ How to Access & Modify the Chart of Accounts?

📍 Go to:
Home > Accounting > Accounting Masters > Chart of Accounts

VinAR-ERP includes a standard CoA, but you can modify it in two ways:

1️⃣ Manually Edit Accounts

  • Open the Chart of Accounts.
  • Click on an account to edit, delete, or add a sub-account ("child account").
  • If adding a new account, enter a name, number, and type.
  • Select currency (useful for international transactions).
  • Click Save.

2️⃣ Use the Importer Tool

  • Import a customized CoA in bulk (note: this will overwrite the existing CoA).

📂 Types of Accounts in the Chart of Accounts

VinAR-ERP organizes accounts into two main groups:

1️⃣ Balance Sheet Accounts (Assets & Liabilities)

These accounts show what your company owns (assets) and owes (liabilities).

📌 Assets (What You Own)

  • Cash & Bank Accounts (e.g., checking accounts, cash on hand)
  • Accounts Receivable (money customers owe you)
  • Fixed Assets (e.g., buildings, equipment, furniture)

📌 Liabilities (What You Owe)

  • Accounts Payable (money you owe suppliers)
  • Loans & Debt
  • Taxes Payable (e.g., VAT, sales tax, income tax)

📝 Note: At the start and end of a financial year, your total assets always equal total liabilities.

2️⃣ Profit & Loss Accounts (Income & Expenses)

These accounts track your company’s revenue and expenses over time.

📌 Income Accounts (Money Coming In)

  • Sales Revenue (e.g., product sales, service income)
  • Other Income (e.g., interest earned, rental income)

📌 Expense Accounts (Money Going Out)

  • Operational Costs (e.g., rent, salaries, utilities)
  • Cost of Goods Sold (COGS) (direct costs of making/selling products)
  • Depreciation (wear & tear on assets)

📝 Note: Unlike balance sheet accounts, profit & loss accounts reset to zero at the start of each financial year.

📂 Groups & Ledgers in the Chart of Accounts

VinAR-ERP organizes accounts into Groups and Ledgers:

✔ Groups – Act like folders and can contain multiple sub-accounts.
✔ Ledgers – The final accounts where actual transactions happen.

🛑 You can only record transactions in Ledger Accounts (not Groups).

🔎 Special Account Types in VinAR-ERP

In addition to the standard categories, VinAR-ERP supports specialized accounts for better financial tracking:

Account Type Purpose
Bank Account Holds company bank balances.
Cash Account Tracks physical cash transactions.
Accounts Payable Money owed to suppliers.
Accounts Receivable Money owed by customers.
Depreciation Records asset value reduction over time.
Cost of Goods Sold (COGS) Tracks direct costs of products/services.
Tax Accounts VAT, GST, sales tax, etc.
Stock Accounts Tracks warehouse inventory.
Round Off Adjusts small rounding differences in invoices.

📊 Financial Statements in VinAR-ERP

VinAR-ERP provides built-in financial reports to help you track your company’s performance:

📌 Balance Sheet – Shows company assets & liabilities.
📌 Profit & Loss Statement – Tracks income & expenses over time.
📌 Cash Flow Report – Analyzes cash inflows & outflows.

🔢 Understanding Account Numbers

VinAR-ERP uses account numbers to keep the Chart of Accounts organized.

✔ Each category has a unique number series (e.g., Assets start with 1000, Liabilities with 2000, etc.).
✔ Sub-accounts follow the main category’s numbering system.
✔ Gaps are left between numbers to allow future additions.

🔹 You can manually assign or update account numbers from the Chart of Accounts page.

🚀 Key Takeaways

✔ The Chart of Accounts is the backbone of your financial records.
✔ It classifies transactions into Assets, Liabilities, Income, and Expenses.
✔ VinAR-ERP provides a pre-configured CoA but allows full customization.
✔ Financial statements like Balance Sheets & Profit/Loss Reports help track performance.
✔ Account numbers keep the structure organized and scalable.

By understanding the Chart of Accounts, you gain better financial control over your business!

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