Chart of Accounts
Each accounting code has 3 components: Code, Description and Account Type. Account types are pre-defined system inputs and cannot be changed. Wremia also offer some system accounts which cannot be deleted. However, you could create up to 5000 accounts depending on your business needs.
| Account types | Accounting Treatment |
| Sales | PL |
| Expense | PL |
| Accounts Payable | Current Liabilities |
| Accounts Receivable | Current Assets |
| Advances Given | Current Assets |
| Payables to Employees | Current Liabilities |
| Advances Received | Current Assets |
| Income Accrual | Current Assets |
| Expense Accrual | Current Liabilities |
| Foreign Currency Gains | PL |
| Foreign Currency Loss | PL |
| Cash and Banks | Current Assets |
| Deferred Income | Current Liabilities |
| Expense | PL |
| Tax Accounts | Current Assets/Liabilities |
Below table shows the system accounts (you can change the description but cannot delete any of them):
| Code | Description | Account types |
| Sales | ||
| Expense | ||
| Accounts Payable | ||
| Accounts Receivable | ||
| Advances Given | ||
| Payables to Employees | ||
| Advances Received | ||
| Income Accrual | ||
| Expense Accrual | ||
| Foreign Currency Gains | ||
| Foreign Currency Loss | ||
| Cash and Banks | ||
| Deferred Income | ||
| Expense | ||
| Tax Accounts |
How to change your currency model for chart of accounts
As discussed in Multi-currency Accounting article you have different options while setting up your chart of accounts. Below example will show you how to change your option after booking some transactions.
ABC, Inc using accounting module for 2 months and it has many transactions under its single bank account (#100-Banks). These transactions have been realized as EUR, USD and GBP and ABC, Inc. is able to see both original balances and local currency conversion for each different currency under the same bank account. However, they decided to split the bank account into 3 (#101-USD Banks, #102-EUR Banks, #103-GBP Banks). Accountant of ABC, Inc. will just follow the below steps:
- Open new bank accounts
- Determine the final original balances of each different currency
- Prepare a manual journal entry to transfer these amounts to 3 separate bank accounts
As a result of the manual journal entry account #100-Banks has now zero-balance of EUR, USD and GBP whereas it local conversion might be slightly different due to fx-differences. Therefore, a final step should be FX-valuation which will correct the local currency amounts.
Please see FX valuation page for more details.