Chart of Accounts

What is the Chart of Accounts?

The format of the General Ledger accounts (or Chart of Accounts) is very flexible, and derived from the sub-codes related to Company, Branch, Cost Centre, and Base Account Number (or Sub Code). 

Each account must fall into one of the following eight Account Types: 

• Asset

• Liability

• Equity

• Expense

• Other Expense

• Cost of Sales

• Revenue

• Other Revenue

Accounts may be grouped under the eight types of parent accounts in up to 4 levels. This structure allows totals to be calculated for each account as well as parent accounts, and is very useful for generating reports.

Note: It is important that the General Ledger structure be designed to achieve the desired reporting outcomes prior to commencing setup. Once a General Ledger structure is implemented, it is very difficult to change.

Account Number Format

Each account number is a combination of the corresponding sub-code for each level. For example, a common format is CC-BB-DD-XXXX, where CC specifies the company, BB specifies the branch, DD specifies the cost centre, and XXXX specifies the account.

While it is not mandatory to include a cost centre, company, or branch sub-code, Moveware recommends this format as it enables singular and group reporting across entities and subcodes.