The mandatory "Default" accounts are populated by default as part of the general ledger configuration. That accounts are obviously part of the organization's chart of accounts.
If an accounting csv or reference data is not selected while running the Initial Client Setup process or the Initial Organization Setup process, these mandatory accounts need to be manually entered here once the account tree and therefore the corresponding sub-accounts have been created.
The accounts selected here are defaulted to every Business Partner Category or Product Category for instance by using action button "Copy Accounts".
Same way the accounts defaulted to every business partner category for instance, can be as well defaulted to every vendor or customer by using the action button "Copy Accounts" this time from the Business Partner Category window.
Finally it is possible to override these defaults at business partner category level allowing vendor liabilities and customer receivables for different business partners to be posted to different accounts.
This last configuration change needs to be done in the vendor and/or customer windows.
As shown in the image above "default" accounts are:
- Customer Receivables
- Customer Prepayments
- Write Off
- Write Off Revenue
- Vendor Liability
- Vendor Prepayment
- Non-Invoiced Receipts
- Bad Debt Expense Account
- Bad Debt Revenue Account
- Allowance for Doubtful Debt Account
- Doubtful Debt Account
- Product Asset
- Product Expense
- Product Deferred Expense
- Product Revenue
- Product Deferred Revenue
- Product COGS
- Product Revenue Return
- Product COGS Return
- Invoice Price Variance
- Warehouse Differences
- Inventory Revaluation
- Work in Progress
- The "Bank Asset" default account is populated as:
- The "Bank In Transit" default account is populated as:
- The "Bank Expense" default account is populated as:
- the Bank Fee Account
- Bank Revaluation Gain Account
- Bank Revaluation Loss Account
- Tax Due
- Tax Credit
- Accumulated Depreciation
These last ones belongs to the old financial flows so will be removed in further Openbravo 3 releases:
- Cash Book Asset
- Cash Book Differences
- Cash Transfer
Creation of a General Ledger Configuration
An Organization might have as many different General Ledgers as required.
By default an organization can have only one general ledger assigned for simplicity reasons unless:
- the organization has its own general ledger and another one inherited from its parent, that is for instance the case of "F&B España" sample organization
- or the advanced general ledger configuration is enabled at system level as explained in the Organization article.
It is recommended to create a new general ledger configuration and link it to an organization once the Account Tree to use while posting transactions to that new general ledger has been created.
- It can happen that an organization might require the same account tree but different general ledgers, one of them in USD and the other one in EUR.
The steps to follow to configure a general ledger are:
- select the "Organization" for which the general ledger is going to be available, for instance "F&B US Inc."
- enter the "Name" of the General Ledger configuration, for instance "EUR General Ledger"
- select the "Accounting Standard" for instance "US GAAP".
In the United States, "Generally Accepted Accounting Principles" (GAAP) is the name for the framework of accounting rules used in the preparation of financial statements.
This data is just informative without any business logic behind it.
- select the "Currency" to use for posting transactions to the ledger.
In the case of the F&B US Inc organization, the currency can be "EUR" therefore the F&B US Inc organization can get a double posting one in "USD" and the other one in "EUR".
- select the check "Allow Negative" in case negative posting is allowed as already described or not
Once done the newly created general ledger needs to be linked to F&B US Inc organization in the General Ledgers tab.
The organization of the example has now two general ledgers assigned:
- the inherited one (owned by its parent organization "F&B International Group") in "USD" currency.
- the newly created one in "EUR" currency
Back to the General Ledger configuration window the remaining steps to take to properly configure the general ledger are:
Navigate to the Dimension tab to add below listed mandatory dimensions:
- create a new record and enter Organization in the field "Name"
- select "Organization" in the field "Type"
- select "F&B US Inc" in the field "Trx Organization"
- select the checkbox "Balanced" and the checkbox "Mandatory"
- create a new record and enter Account in the field "Name"
- select "Account" in the field "Type"
- select the already existing "Account Tree" in the field "Account Tree"
- select the checkbox "Mandatory"
- Non mandatory dimensions can also be created as described below in case it is required to save additional information such as the business partner or the project while posting journal entries or any transaction type:
- - create a new record and enter "Business Partner" in the field "Name"
- - select "Business Partner" in the field "Type"
- - create a new record and enter "Project" in the field "Name"
- - select "Project" in the field "Type"
Navigate to the Active Tables tab to review the tables which are going to generate accounting. It is possible to enable accounting for the ones do not active for accounting.
Navigate to the General Accounts tab to configure the mandatory general account (Income Summary) as well as the accounts to use in case of suspense balancing or suspense error among others. Those accounts needs to be previously created as described in the Account Tree creation article.
Finally navigate to the Defaults tab to configure the default accounts which needs to be copied to other accounting configuration tab such as:
- the Product Accounting tab
- the Financial Account Accounting Configuration tab
- the Tax Rate Accounting tab
as every time that a transaction of any type is posted to the ledger, it will posted to the two general ledgers configured for the Organization.