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Accounting Chart of Accounts; It is a list of standardized accounts used to record accounting transactions. If a good chart of accounts is not constructed or is done incorrectly, accounting tables such as trial balance, income statement and balance sheet will give incorrect results. Incorrect accounting statements can cause irreparable losses for a business. People who will design account plans must be experts. The people who will save the charts of accounts and settings to the system must be selected from meticulous and careful people.

Path: ERP > Finance Accounting > Accounting Definitions > Chart of Accounts

Accounting account codes have an extremely simple logic. There are main accounts that start with a numerical value between 1-9. Main accounts are divided into subaccounts using point separator. The purpose for which the accounts up to the first point in the hierarchy will be used is determined by legal regulations. All the accounts under it are determined by the needs and thought system of the businesses.

The sub-accounts after the first point and the other sub-accounts opened under them and the other sub-accounts opened using the point can theoretically create an endless hierarchical structure. However, do not forget that; Opening unmanageable subaccounts can cause chaos. As we always say, no business should bother with details that it cannot manage.

Since we think you will find a very familiar subject and a lot of detailed content and benefit from experts, we will content ourselves with explaining it with a simple example.

CURRENT ASSETS
10. Liquid Values
       100. Cash
             100.001 Branch A
                   100.001.01 Branch A TL Cash
                   100.001.02 Branch A USD Cash

Starting with 1, 10 and 100 Account codes are standard codes and come ready with the installation in W3. According to the example above, cash account codes are grouped first by branches and then by currencies.

In W3, uniform charts of accounts can be created in compliance with IFRS (International Financial Reporting System). This feature allows single and IFRS codes to be used simultaneously. If it is an independent audit or a business with foreign partners, a uniform chart of accounts and IFRS will often be required at the same time. Generally, businesses or accountants create accounting tables in IFRS standards by moving the transactions recorded in uniform charts of accounts to accounts created with IFRS codes at the end of the period.

You have the opportunity to work simultaneously in W3.

Using Chart of Accounts Record Screens
Standard Accounting Account Code Table and Explanations

Accounting account codes with the following business functions connected.

Description	Business Function
Product Accounting Codes	Product - Stock
Customer-Supplier Accounting Codes	Individual - Corporate
Employee Accounting Codes	Employee
Cash Accounting Codes	Cash
Bank Accounting Codes	Bank
Budget Item Accounting Codes	Budget Item Definition
Project Accounting Codes	Project
Fixed Asset Accounting Codes	Fixed Assets and Physical Assets
VAT and SCT Accounting Codes	VAT, SCT Definitions

Recommendation
One of the most common mistakes is to use the accounting chart of accounts that you used in your old accounting application or that you received from the previous fiscal year, as is. Account plans, which have mostly been created over the years, contain many unnecessary and unused account codes. Sometimes, the old chart of accounts may have lagged behind the developments in the business. Do not try to transfer a chart of accounts that you have not worked on, reinterpreted or edited.

With the Chart of Accounts, accounts can be viewed, new accounts can be added and account definitions can be updated. Additionally, the details of the accounts can be viewed and reported in detail in which transactions an account was used.

Creating an Account

A new account, that is, the main account, is added with the + button in the account plan. If you want to create a sub-account linked to this main account, it can be added by pressing the + button next to the main account. Likewise, if you want to create a sub-account linked to the sub-account, it can be added by pressing the + button next to the sub-account. Accounts can be broken down as much as desired, and sub-accounts linked to sub-accounts can be created.

A new record is created by filling in the Account Name and Account Code: fields.
Account Type: For inflation correction transactions, one of the options of Monetary, Non-monetary (+), Non-monetary (-) is selected. The account type field appears according to predetermined account codes. Future account codes are defined from the "Inflation Adjusted Account Codes" field in the xml.
IFRS Code and Explanation: If "Use IFRS Code" is selected as yes in the Company Flow Parameters, IFRS fields appear and accounting codes are created in accordance with the National Reporting Finance System.

Tip

You can limit the number of account characters with the Primary account character count feature in the XML setting on the chart of accounts registration screen. If three or five characters are selected, the number of characters is limited. If left blank, any number of characters can be entered.

Tips

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Account Plan

Accounting Chart of Accounts; It is a list of standardized accounts used to record accounting transactions. It can also be recorded as IFRS.

Type: WBO Version: Catalsyt v5 Licence: Standard Author: Workcube Core