Chart of Accounts File

Chart of Accounts

Chart of accounts is the screen where the master chart of account i.e. General Ledger (GL) and all the subsidiary chart of accounts are defined. The GL contains control accounts and these accounts cannot be posted into except for one account Retained Earnings Brought Forward. “Retained earnings” is an account used as a closing account for subsidiary ledgers of PL.

Balances of all subsidiary ledgers are totalled into control accounts. In a company, the main ledger does not have a control account and this is usually the GL. You may have different main ledgers for different companies, as long as the company code is entered.

Chart of Accounts screen can be used to create subsidiary ledgers and accounts

Steps to create a new ledger

1. Open Chart of Accounts screen under Menu>Finance>Ledger>Chart of Accounts File
2. Enter a chart code using standard 4 letter NEOSYS code system Codes in NEOSYS
3. Enter the chart name
4. Enter company code if this ledger is specifically linked to a company (if there are more than one companies in the installation)
5. Enter control account to which the new ledger will be a subsidiary. Control account codes can be obtained by referring to the GL chart
6. Choose whether account is Open type or Balance forward. Accounts which have to show outstanding balances must be set as Open Item else set to Balance forward.
7. Choose whether outstanding must be shown as debits or credits. E.g. Asset ledgers like Trade debtors should be debit since unpaid client invoices are debits, liability ledgers like Trade creditors should be credit since unpaid supplier invoices are credits
8. If the ledger is a PL account then add the Retained Earnings account code in the closing account code field
9. Save the chart