Chart of Accounts and Bank Accounts in Tagrit ERP

Topic: Chart of Accounts and Bank Accounts in Tagrit ERP

The Chart of Accounts (COA) and Bank Accounts are fundamental components in Tagrit ERP's Accounting & Bookkeeping Module, providing the basis for categorizing, organizing, and tracking all financial transactions. Here, we'll walk through configuring these accounts, adding new accounts, importing accounts, and managing bank accounts with initial balances and essential details.

1. Understanding Account Detail Types

• Account Detail Types categorize each account, defining its specific nature (e.g., type of asset, liability, income, or expense).
• These detail types are grouped under broader Account Types, which are pre-set and cannot be edited.
• To view or adjust detail types, go to Account Detail Types. Here, you can:
  • Add new detail types.
  • Assign each detail type to an account type.
  • Choose how it should appear in the Statement of Cash Flows, such as under operating, investing, or financing activities.

2. Creating Accounts in the Chart of Accounts (COA)

• The Chart of Accounts lists all accounts, allowing you to manage assets, liabilities, income, and expenses.

• Steps to Add a New Account:

  1. Navigate to Chart of Accounts and click Add.
  2. Select the Account Type (e.g., Cash, Accounts Receivable).
  3. Choose a Detail Type that specifies the account category.
  4. Enter a Name and Account Number (if required).
  5. Assign a Parent Account (for hierarchical accounts).
  6. Set the Opening Balance and the Date to establish the initial balance.
  7. Save the account.

• Notes:

  • To display account numbers in the COA, ensure Show Account Numbers is enabled in General Settings.
  • Only accounts without transactions or opening balances can be deleted.

3. Importing Multiple Accounts to the COA

• If you need to add multiple accounts, Tagrit ERP allows batch importing from a pre-formatted file.

• Import Steps:

  1. Download the Template by clicking Download Sample on the Import page.
  2. Fill in the required data, including Account Type, Detail Type, and any hierarchical details (like sub-accounts).
  3. Upload the filled file and press Import.
  4. The system will show a summary of imported lines, indicating any errors for correction.

• Important: Imported accounts will not include opening balances. You’ll need to manually add balances afterward.

4. Managing Bank Accounts

• Adding a Bank Account enables easier tracking and mapping of transactions and simplifies bank reconciliation.

• Steps to Create a New Bank Account:

  1. Go to Bank Accounts and select Add Bank Account.
  2. Enter a Name and Account Number for the bank account.
  3. Assign a Parent Account if applicable.
  4. Specify the Opening Balance and Date.
  5. Provide additional details, such as Bank Name, Routing Number, and Description.
  6. Save the bank account.

• Editing or Deleting Bank Accounts:

  • A bank account cannot be deleted if it has existing transactions or an opening balance. Instead, you can disable it if it is no longer needed.
  • Opening balances cannot be edited once saved; consider disabling and recreating if a correction is needed.

By carefully setting up and managing accounts in Tagrit ERP, businesses can ensure accurate financial tracking and a streamlined path for financial reporting.