Chart Of Accounts

The Chart of Accounts is the structured list of accounts used to record and report a company’s financial activity. Each company has its own tree.

Understand the account tree

Open Home > Accounting > Accounting Masters > Chart of Accounts and select the company.

Group accounts organize the tree and cannot receive General Ledger entries. Ledger accounts are the final nodes used in transactions.

Add an account

1. Select the parent group.
2. Click Add Child.
3. Enter the account name and number, if numbering is used.
4. Enable Is Group only when the account will contain child accounts.
5. Select an Account Type when the account has a specific purpose, such as Bank, Cash, Receivable, Payable, Tax, Stock, or Fixed Asset.
6. Save.

Use account types consistently. ERPNext uses them to filter account fields and determine transaction behavior.

Plan the structure

Keep the tree detailed enough for reporting but simple enough to use reliably. Prefer Cost Centers, Projects, and Accounting Dimensions when you need to analyze the same account by department, branch, product line, or initiative.

Do not create a separate receivable or payable ledger for every Customer or Supplier. ERPNext maintains party-wise balances within the designated control accounts.

Edit or disable an account

You can rename or move an account when there are no conflicting restrictions. Disable an unused account instead of deleting it when it has transaction history. Never convert a ledger into a group, or a group into a ledger, without reviewing its children and postings.

Importing or migrating a Chart of Accounts

Finalize the structure before importing opening balances. Map accounts from the previous system, create required control accounts, and test financial statements. Avoid importing old transaction-level detail unless it is required for statutory, operational, or audit reasons.

Verify the Chart of Accounts

Create draft Sales Invoice, Purchase Invoice, Payment Entry, and Journal Entry records. Confirm that account filters show the intended ledgers. Then review the General Ledger, Balance Sheet, and Profit and Loss Statement after a controlled test posting.

Troubleshooting

An account is missing from a transaction

Confirm its company, account type, root type, disabled status, and whether it is a group.

An account cannot be deleted

It may have child accounts, defaults, or transaction history. Disable it after replacing any defaults.

Related topics

• Company accounting defaults
• Cost Center
• Opening Balance
• Chart of Accounts Importer