Adding New Account in The Chart of Accounts
What is the chart of accounts?
The chart of accounts is a list that includes all the accounts used by the organization that pertains to financial transactions. These accounts are classified according to a specific pattern and method based on the size and activity of the organization. It is the basis for establishing the accounting system.
The chart of accounts consists of several levels and Qoyod provides 7 levels, starting with the first level, which includes the main accounts and coding them as follows:
- Balance Sheet accounts:
- Income statement accounts:
Under each account, some sub-accounts are coded so that they could be easily traced back to the main accounts they fall under. Additional branches can be made for sub-accounts through the same mechanism used for coding sub-accounts or according to your organization’s policy.
You can create a new account by following the steps below:
1- From the dropdown menu of “Accounting”, select “Chart of Accounts”
2- After clicking on the “Chart of Accounts”, click on “+ New Account”.
3- Select the “Parent Account” under which the new account is to be added”, for example: the “1102- Cash In Bank”.
4- After selecting the “Parent Account”, “Bank account” from the dropdown list of “Account Type” will be selected based on “Cash in Bank” type.
5- Type in the English and Arabic account names.
6- In the “Code” field, you can code the account according to the policy adopted in your organization. Alternatively, the code will be automatically generated.
7- Add a “Description” to the account (optional)
Now, the current bank account (Bank AlJazira), which is classified under “Cash In Bank” as a current asset, has been added and coded as follows:
110209: 1 Assets 1 Current Assets 02 Cash In Bank 09 Bank AlJazira
Options: Payment can be made with this account if the account type accepts payment such as “Cash In Bank”.
Notice: When selecting an option that accepts payment, the system does not accept adding sub-accounts to Bank AlJazira account in case there is more than one current account with the organization at Bank AlJazira.
8- Click on “Save” to add the account.
Shortcut to add a sub-account:
Example: Adding an account for machines commissary.
1- Select the “+” icon.
Then, an automatic sub-code will be generated from the commissary code.
2- After filling in the data, click on “Continue” and the machines commissary account will appear as a sub-account of the commissary