Chart of accounts

The Chart of Accounts is the list of all accounts your company uses, arranged as a tree. Every invoice, payment and stock movement posts to accounts in this tree. Your financial reports are built from it.

Before you start

• Your OLY ERP consultant creates your chart of accounts during onboarding, from the OLY ERP template for Ethiopian businesses. You do not build it from zero.
• Only your accountant (Accounts Manager role) should add or change accounts.

How the tree works

The tree has five top-level groups: Application of Funds (Assets), Source of Funds (Liabilities), Equity, Income and Expenses.

• A group account is like a folder. It holds other accounts. You cannot post an entry to a group. Example: "Indirect Expenses".
• A ledger account is where amounts are posted. Example: "Bank Charges - EF".

The ending "- EF" is the company abbreviation, added automatically.

Steps

View the chart of accounts

1. Go to Accounting in the sidebar and open Chart of Accounts.
2. Select your Company at the top if you have more than one.
3. Click a group to open it. The balance of each account is shown next to its name.

Add a ledger account

Example: Meron wants a separate account for generator fuel.

1. In the tree, click the group the new account belongs under, for example "Indirect Expenses".
2. Click Add Child.
3. Enter the New Account Name, for example "Generator Fuel".
4. Leave Is Group unticked, because you will post to this account.
5. Select the Account Type only if your consultant told you to. For most expense accounts leave it empty.
6. Click Create New.

Find the account later

Type the account name in the search bar, or use the Account list with a filter. Open the account to see its settings. The General Ledger report shows every entry posted to it.

Good to know

• Put the account under the right group. Assets, liabilities, income and expenses each appear in a different part of the reports. A wrong group gives wrong reports.
• Do not rename or delete an account that already has entries. Your history and reports depend on it. If you no longer need it, tick Disabled and ask your consultant if unsure.
• Some accounts are linked to settings, for example the VAT accounts, stock accounts, receivable and payable accounts. Do not change these without your consultant.
• Before adding a new account, check that a similar one does not already exist. Too many accounts make reports hard to read.

Related

• Bank and cash accounts
• Journal entries
• Financial reports: P&L, balance sheet, trial balance