GL Codes and Chart of Accounts in StrategicERP
A Chart of Accounts (COA) is a listing of all the financial accounts in a company’s general ledger (GL). They are grouped into categories that correspond to the structure of an organization’s financial statements. For simplicity purposes, every ledger is tagged into a Code which enables future referencing and tagging.
In StrategicERP, we have bifurcated the COA into following Codes:
| 100000 | Current Assets |
| 200000 | Non-Current Assets |
| 300000 | Current Liabilities |
| 400000 | Non-Current Liabilities |
| 500000 | Equity |
| 600000 | Direct Expenses |
| 700000 | Indirect Expenses |
| 800000 | Direct Income |
| 900000 | Indirect Income |
Further, each category is bifurcated into various groups as required by the company bearing in mind the numbering of such sub-group created.
For example in Current Assets, we can have following grouping:
| GL Code | Account Description | Account Type | Statement |
| 110000 | Inventories | Current Assets | Balance Sheet |
| 120000 | Prepaid Expenses & Other Current Assets | Current Assets | Balance Sheet |
| 130000 | Accounts Receivables | Current Assets | Balance Sheet |
| 140000 | Investment in Shares & Securities | Current Assets | Balance Sheet |
| 150000 | Other short term assets | Current Assets | Balance Sheet |
Similarly, in Non Current Liabilities we can make the following sub-groups:
| GL Code | Account Description | Account Type | Statement |
| 410000 | Long Term Borrowings | Non Current Liabilities | Balance Sheet |
| 420000 | Provisions | Non Current Liabilities | Balance Sheet |
| 430000 | Deferred Tax liabilities | Non Current Liabilities | Balance Sheet |
| 440000 | Secured Loans | Non Current Liabilities | Balance Sheet |
| 450000 | Unsecured Loans | Non Current Liabilities | Balance Sheet |
This will help the user to locate a particular account with the help of its account number.
