Chart of Accounts

This chapter covers how to set up and manage the chart of accounts for the school's financial management.

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Overview

The Chart of Accounts (COA) is the foundation of the finance module. It defines all the accounts used to record financial transactions, including income, expenses, assets, and liabilities.

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Accessing Chart of Accounts

• Log in as Administrator or Accountant

Navigate to Accounts → Chart of Accounts

View account structure

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Understanding Account Types

Main Account Groups

Type	Description	Examples
------	-------------	----------
Assets	Resources owned	Cash, Bank, Buildings
Liabilities	Money owed	Loans, Creditors
Income	Revenue received	Fees, Donations
Expenses	Money spent	Salaries, Supplies
Equity	Net worth	Capital, Reserves

Account Levels

Group - Main category (e.g., Assets)

Sub-Group - Secondary level (e.g., Current Assets)

Ledger - Individual accounts (e.g., Cash in Hand)

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Creating Accounts

Step-by-Step Process

Click Add Account

Enter:

- Account Name - Descriptive name - Account Code - Unique identifier - Account Type - Select from types - Opening Balance - Initial balance - Parent Account - Group/sub-group - Is Active - Enable/disable

Save account

Example Accounts

Income:

• Tuition Fees

• Transport Fees

• Hostel Fees

• Registration Fees

Other Income

Expenses:

• Salaries and Wages

• Rent

• Utilities

• Maintenance

Office Supplies

Assets:

• Cash at Bank

• Cash in Hand

• Furniture

Computer Equipment

Liabilities:

• Bank Loan

Security Deposits

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Account Groups

Creating Groups

Go to Account Groups

Add groups:

- Under each main type - Define subgroups

Set:

- Group name - Code prefix - Parent group

Default Groups

System provides default structure:

Assets

- Fixed Assets - Current Assets

Liabilities

- Long-term - Current Liabilities

Income

- Direct Income - Indirect Income

Expenses

- Direct Expenses - Indirect Expenses

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Managing Accounts

Editing Accounts

• Find account

Click Edit

• Modify details

Save

Deactivating Accounts

Instead of deleting:

• Edit account

• Disable "Is Active"

Save

Inactive accounts won't appear in new transactions.

Deleting Accounts

Only unused accounts can be deleted:

• Check if any transactions exist

• If none, delete

If transactions exist, must reverse first

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Account Code Structure

Numbering System

Establish a logical code system:

Example: ` 1xxx - Assets 1000 - Fixed Assets 1001 - Furniture 1002 - Computers 1100 - Current Assets 1101 - Cash at Bank 1102 - Cash in Hand

2xxx - Liabilities ...

3xxx - Income ...

4xxx - Expenses ... `

Benefits

• Easy identification

• Sorting and filtering

Report generation

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Opening Balances

Setting Initial Balances

When starting with the system:

Set opening balances for:

- Asset accounts (debit balance) - Liability accounts (credit balance)

• Enter as of start date

Verify total debits = total credits

Year Opening

Each new academic year:

• Carry forward balances

• Or start fresh with zero

Configure in settings

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Budgeting

Setting Budgets

Create annual budgets:

Go to Budget

• Select account

Set budget amounts:

- Monthly - Quarterly - Annually

Compare actual vs budget

Budget Reports

Track variance:

• Over budget warnings

Under budget analysis

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Best Practices

Plan structure - Design before implementing

Use consistent codes - Logical numbering

Document accounts - Add descriptions

Review annually - Update as needed

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Integration with Other Modules

Automatic Entries

System creates entries from:

• Fee collection

• Payroll

• Inventory

Transport

Manual Entries

For other transactions:

• Record directly in accounts

Link to account categories

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Troubleshooting

Problem: Cannot delete account

Solution: Check for transactions; may need to reverse first

Problem: Account not in dropdown

Solution: Check if active; verify type selection

Problem: Balance incorrect

Solution: Check opening balance; review all transactions

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Related Topics

Transactions - Recording income and expenses

Financial Reports - Generating reports

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Permissions

Administrator - Full access

Accountant - Full access

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Last Updated: April 2026