Specifying types of accounting in accounting policy

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This is applicable if the Use template based types of accounting option is selected in Settings > Company, under Accounting.

In a company's accounting policy, you can specify multiple types of accounting based on different charts of accounts. Accounting entries will be recorded for each type of accounting. For example, financial accounting and tax accounting.

To specify types of accounting in an accounting policy:

  1. Go to Accounting.
  2. Under Accounting settings, click Accounting policy.
  3. Open an accounting policy.
  4. In the Accounting policy window, on the Types of accounting tab, click Add and select the following:
Field Description
Type of accounting A type of accounting that you want to apply.
If a type of accounting is missing, do the following to add it:
  1. Double-click the Type of accounting field.
  2. In the displayed drop-down list, click .
  3. In the Type of accounting (create) window, enter the name and detailed description of the type of accounting. Then click Save and close.
Chart of accounts A chart of accounts for the specified type of accounting.
If a chart of accounts is missing, do the following to add it:
  1. Double-click the Chart of accounts field.
  2. In the displayed drop-down list, click .
  3. In the Chart of accounts (create) window, specify the following:
    • Name. The chart of accounts name.
    • Detailed description. Additional details on the chart of accounts. For example, the chart of accounts purpose.
    • Type of entries. The type of accounting entries to be posted to the accounts included in this chart of accounts. Select either simple or compound accounting entries.
    • Quantity. Indicates whether the accounts have the quantity settings. These settings define whether the quantity details are added to the accounting entries posted to the accounts. For example, in addition to the amount of money, an accounting entry can show the quantity of product items sold.
      Select the checkbox to be able to specify the quantity settings for the accounts in this chart of accounts.
    • Allow to change quantity settings if account has entries. Indicates whether you can change the quantity settings for an account after accounting entries are posted to this account.
      Select the checkbox if you want to be able to turn on or turn off the quantity details for accounts with accounting entries. To be able to select this checkbox, select the Quantity checkbox first.
    • Analytical dimensions. Indicates whether the accounts have the analytical dimension settings. These settings define whether additional details are shown in the accounting entries posted to the accounts. For example, an accounting entry can include the "Accounts receivable" account with such analytical dimensions as Customer, Contract, or Order.
      Select the checkbox if you want to be able to specify the analytical dimension settings for the accounts in this chart of accounts.
    • Allow to change analytical dimensions if account has entries. Indicates whether you can change the analytical dimension settings for an account after accounting entries are posted to this account.
      Select the checkbox if you want to be able to turn on, turn off, or change analytical dimensions for accounts with accounting entries. To be able to select this checkbox, select the Analytical dimensions checkbox first.
  4. Click Save and close.
Entries posting option Documents that will post accounting entries. Select either of the following:
  • Accounting source documents. Business documents (such as sales invoices) post accounting entries. These are the documents included in a list of accounting source documents. For details, see Specifying accounting source documents.
    Select this option if you want to manage accounting entries together with business document details. For example, this option is applicable if the same employee (such as an accountant) manages business documents and accounting entries.
  • Accounting transaction documents. Instead of business documents, separate accounting transaction documents post accounting entries. The accounting entries are based on data from the specified accounting source documents. For details, see Specifying accounting source documents. For example, an accounting transaction document can post accounting entries for a sales invoice.
    Select this option if you want to manage accounting entries and business document details separately. For example, this option is applicable, if one employee (such as a procurement manager) creates and monitors business documents and another employee (such as an accountant) manages accounting entries.

To add multiple types of accounting, add as many lines with the settings as you need.

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