Chart of Accounts

Chart of accounts (COA) is a created list of accounts used by an organization to define each class of items for which money or the equivalent is spent or received.

It is used to organize the finances of the entity and to segregate expenditures, revenue, assets and liabilities in order to give interested parties a better understanding of the financial  health of the entity.

Normally defined by an identifier and a heading explaining text title and coded by account type.

Vanguard Financial's has a user friendly defined Chart Of Account that is easy to understand and use.

To access this module:Click on Accounts Management - > Setup - > GL Accounts - > Chart of Accounts. 

The following window opens up: 

Chart Of Account Window.

How To Create A Chart Of Accounts

1. To create a new G/L Account, click on the ADD NEW button to open the following window: 

Creating a new Chart of Account.

NOTE : The CoA has two main categories within which the created accounts fall; header & detail account. 

The header account is usually non-post-able while the detail account is usually post-able.  

The header normally precedes the detail, but the vice versa can happen under specific circumstances. 

On the above screen;

Creating A Parent/Header G/L Account:

Parent G/L Account - Leave this field as is. 

Cost Distribution Rule - Click on the lookup icon to open a Cost Center Lookup dialog box: 

Cost Distribution Rule Window.

Select appropriately the correct Cost distribution rule for the G/L Account.

Currency-Lookup to pick the appropriate currency the following window will pop

Account Type - This field cannot be edited. The type will be populated depending on the selected account category. 

Account Category - Select the account type as header from the drop down menu: 

Select the Account Category from this Lookup.

G/L Account Name - Enter name of the G/L account being created. 

G/L Account Code - Enter the seven (7) digit G/L account code. 

To the bottom of the screen, check the appropriate flags to be associated with the account being created: 

 

Control Account - Check if the account will be used to record the balances on the subsidiary accounts and to provide a cross-check on them.

Reconciliation Account - Check if the account will contain a summary of sub - ledger accounts, and ensuring that the balances match. 

Since it only provides a summary, no transactions are directly posted to the account. 

Post - Automatically Only - Check if you wish not to debit or credit the account directly, but rather through other accounts. 

Is confidential- Check this to restrict viewing of gl transactions to designated roles

Locked - Check if you wish to render the account unusable. 

Once you are done, click on the CREATE Button to complete this task.

On successful completion you will get a pop up message confirming that the operation was successful.

Successfully created Chart of Account.

Creating A Detail G/L Account:

Check this to restrict viewing of G/L transactions to designated roles

Create a Detail G/L Account.

 On the above screen: 

Parent G/L Account - Click on the lookup icon to open the following G/L Account Lookup dialog box: 

Parent G/L Account Lookup.

Cost  Distribution rule - Click on the lookup icon to open a Cost Distribution Rule Lookup dialog box: 

Cost Distribution Rule Lookup.

Select appropriately the correct Cost Distribution Rule for the G/L Account.

Account Type - This field cannot be edited. The type will be populated depending on the selected account category. 

Account Category - Select the account type as detail account from the drop down menu:

Choose Account Category.

G/L Account Name - Enter name of the G/L account being created. 

G/L Account Code - Enter the seven (7) digit G/L account code. 

To the bottom of the screen, check the appropriate flags to be associated with the account being created: 

   

Select the appropriate Flags.

Control Account - Check if the account will be used to record the balances on the subsidiary accounts and to provide a cross-check on them.

Reconciliation Account - Check if the account will contain a summary of sub - ledger accounts, and ensuring that the balances match. 

Since it only provides a summary, no transactions are directly posted to the account. 

Post - Automatically Only - Check if you wish not to debit or credit the account directly, but rather through other accounts.

Is confidential- Check this to restrict viewing of G/L transactions to designated roles.

Locked - Check if you wish to render the account unusable. 

Once you are done, click on the CREATE Button to complete this task.

On successful completion you will get a pop up message confirming that the operation was successful.

Successfully created Chart of Account.

How To Edit A CoA Entry (G/L Account)

1. Identify the G/L Account to be edited;

Then click on the edit icon against it to open the following window: 

Select the CoA To Be Edited.

On this Edit Screen;

Edit Screen For Chart Of Account.

Make the necessary changes to the Parent G/L Account, Cost Distri. Rule, Account Category, G/L Account Name and G/L Account Code. 

Account is a control account- Check (by putting a tick mark i.e ) if an account is a control account.

Account is a reconciliation account-Check (by putting a tick mark i.e )if an account is a reconciliation account.

Post automatically-  Check (by putting a tick mark i.e) if the system is to post into the G/L Account automatically.

Account is locked- Check (by putting a tick mark i.e ) if you want to lock the account, if an account is locked, no postings can be done in that account.

On successful completion you will get a pop up message confirming that the operation was successful.

Successfully Edited Chart of Account.

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