General Ledger Accounts
General Ledger: Chart of Accounts
Overview
The Chart of Accounts (COA) serves as the foundation of the d6 Finance module, acting as a repository for all financial transactions. It categorizes and summarizes data into a logical structure to facilitate accurate bookkeeping, financial reporting, and auditing.
Navigation Path
Finances > General Ledger > Accounts
Function Description
General Ledger (GL) accounts are categorized by Account Types which determine how the system handles balances, year-end procedures, and reporting. The d6 system utilizes specific logic for Balance Sheet (BS) and Income Statement (IS) items to ensure data integrity.
Account Type Classifications
Income (IS): Revenue accounts populated in the Income Statement. Resets to zero at the start of each financial year.
Expenses (IS): Operational cost accounts. Resets to zero at the start of each financial year.
Bank Account (BS): Used for cheque, savings, investment, and petty cash accounts. These accounts use a sub-ledger for bank reconciliations.
Profile Control Account (BS): Also known as the Debtor or Learner Control Account. Used to manage billing and invoices.
Project Control Account (BS): Used for tracking specific project-based finances.
Accounts Payable (BS): Represents short-term liabilities/debts owed to creditors.
Fixed Assets (BS): Represents long-term assets owned by the entity (e.g., equipment, vehicles).
Cost of Goods Sold (IS): Direct costs attributable to goods or services sold (e.g., tuckshop stock, resale items). Resets to zero at the start of each financial year.
Credit Card (BS): Used to record transactions made via credit card. Represents amounts owed to the credit card provider and forms part of short-term liabilities.
Equity (BS): Represents the residual interest in the assets of the entity after deducting liabilities. Includes retained earnings and accumulated surpluses or deficits.
Expense (IS): Operational cost accounts used to record day-to-day running expenses. Resets to zero at the start of each financial year.
Fixed Asset (BS): Represents long-term tangible assets owned by the entity (e.g., equipment, vehicles, furniture) that are not intended for resale.
Income (IS): Revenue accounts used to record income generated from operations and services. Resets to zero at the start of each financial year.
Long Term Liability (BS): Represents financial obligations that are due beyond one financial year (e.g., loans, financing agreements).
Other Asset (BS): Represents non-current assets that do not fall under standard asset categories but provide long-term value to the entity.
Other Current Asset (BS): Represents short-term assets expected to be realised within one financial year (e.g., deposits paid, short-term investments).
Other Current Liability (BS): Represents short-term obligations payable within one financial year that do not fall under standard liability categories.
Other Expense (IS): Represents non-operational or irregular expenses not directly linked to core activities. Resets to zero at the start of each financial year.
Other Income (IS): Represents non-operational or incidental income not directly generated from core activities. Resets to zero at the start of each financial year.
Salary Control Account (BS): Used to manage and reconcile salary-related transactions, including payroll allocations and outstanding salary amounts payable. Represents a short-term liability until settled.
Income (IS): Revenue accounts populated in the Income Statement. Resets to zero at the start of each financial year.
Expenses (IS): Operational cost accounts. Resets to zero at the start of each financial year.
Bank Account (BS): Used for cheque, savings, investment, and petty cash accounts. These accounts use a sub-ledger for bank reconciliations.
Profile Control Account (BS): Also known as the Debtor or Learner Control Account. Used to manage billing and invoices.
Project Control Account (BS): Used for tracking specific project-based finances.
Accounts Payable (BS): Represents short-term liabilities/debts owed to creditors.
Fixed Assets (BS): Represents long-term assets owned by the entity (e.g., equipment, vehicles).
Cost of Goods Sold (IS): Direct costs attributable to goods or services sold (e.g., tuckshop stock, resale items). Resets to zero at the start of each financial year.
Credit Card (BS): Used to record transactions made via credit card. Represents amounts owed to the credit card provider and forms part of short-term liabilities.
Equity (BS): Represents the residual interest in the assets of the entity after deducting liabilities. Includes retained earnings and accumulated surpluses or deficits.
Expense (IS): Operational cost accounts used to record day-to-day running expenses. Resets to zero at the start of each financial year.
Fixed Asset (BS): Represents long-term tangible assets owned by the entity (e.g., equipment, vehicles, furniture) that are not intended for resale.
Income (IS): Revenue accounts used to record income generated from operations and services. Resets to zero at the start of each financial year.
Long Term Liability (BS): Represents financial obligations that are due beyond one financial year (e.g., loans, financing agreements).
Other Asset (BS): Represents non-current assets that do not fall under standard asset categories but provide long-term value to the entity.
Other Current Asset (BS): Represents short-term assets expected to be realised within one financial year (e.g., deposits paid, short-term investments).
Other Current Liability (BS): Represents short-term obligations payable within one financial year that do not fall under standard liability categories.
Other Expense (IS): Represents non-operational or irregular expenses not directly linked to core activities. Resets to zero at the start of each financial year.
Other Income (IS): Represents non-operational or incidental income not directly generated from core activities. Resets to zero at the start of each financial year.
Salary Control Account (BS): Used to manage and reconcile salary-related transactions, including payroll allocations and outstanding salary amounts payable. Represents a short-term liability until settled.
Step-by-Step Instructions
Creating a General Ledger Account
Navigate to the Accounts screen.
Click the Create an Account button.
Select the Account Type from the dropdown menu.
Enter a unique Account Code. (Note: Follow your institution's numbering logic for consistency).
Enter the Account Name.
Select the Account Active From date using the calendar picker.
For Income, Expense or Assets types, enter a Budget on account from Date.
Select a Budget Category from the dropdown list.
Select a Budget Head from the dropdown list.
Click on the check box if the account is a Sub Account of another account and choose the main account from the dropdown menu
Enter an optional Description or Note if required.
Click Add to save the account.
Navigate to the Accounts screen.
Click the Create an Account button.
Select the Account Type from the dropdown menu.
Enter a unique Account Code. (Note: Follow your institution's numbering logic for consistency).
Enter the Account Name.
Select the Account Active From date using the calendar picker.
For Income, Expense or Assets types, enter a Budget on account from Date.
Select a Budget Category from the dropdown list.
Select a Budget Head from the dropdown list.
Click on the check box if the account is a Sub Account of another account and choose the main account from the dropdown menu
Enter an optional Description or Note if required.
Click Add to save the account.
Editing a General Ledger Account
Select the relevant account from the list.
Click the Edit button.
Modify the allowed fields.
Click Save.
Select the relevant account from the list.
Click the Edit button.
Modify the allowed fields.
Click Save.
Closing a General Ledger Account
Ensure the account balance is zero.
Select the account from the list.
Click the Close Account button.
Choose the correct Close Account on date.
Click Yes to close the account.
Ensure the account balance is zero.
Select the account from the list.
Click the Close Account button.
Choose the correct Close Account on date.
Click Yes to close the account.
Re-activating a Closed Account
Change the Account Status filter to Closed.
Select the account you wish to restore.
Click the Re-activate Account button.
Confirm by clicking Yes.
Change the Account Status filter to Closed.
Select the account you wish to restore.
Click the Re-activate Account button.
Confirm by clicking Yes.
System Behaviour / Technical Notes
Year-End Procedures: Income Statement accounts (Income/Expenses) are cleared to the Retained Income account during year-end processing, whereas Balance Sheet accounts carry their closing balances forward as opening balances for the new financial year.
Control Account Restrictions: The system automatically reconciles Profile (Debtor/ learner) Control accounts and Bank accounts. To maintain the integrity of the sub-ledger, the system blocks direct manual journals to these accounts.
Historical Data Integrity: If an account name is changed significantly (e.g., from "Telephones" to "Bank Charges"), all historical reports for previous years will reflect the new name. To preserve audit trails, it is recommended to close the old account and create a new one.
Year-End Procedures: Income Statement accounts (Income/Expenses) are cleared to the Retained Income account during year-end processing, whereas Balance Sheet accounts carry their closing balances forward as opening balances for the new financial year.
Control Account Restrictions: The system automatically reconciles Profile (Debtor/ learner) Control accounts and Bank accounts. To maintain the integrity of the sub-ledger, the system blocks direct manual journals to these accounts.
Historical Data Integrity: If an account name is changed significantly (e.g., from "Telephones" to "Bank Charges"), all historical reports for previous years will reflect the new name. To preserve audit trails, it is recommended to close the old account and create a new one.
Restrictions & Reasons
© Copyright d6 group (Pty) Ltd
Related Articles
Chart Of Accounts General Ledger
How to generate the report Choose whether you want to see "active" or "closed" or "all" accounts Choose whether you want to view the accounts according to "Account Number, Account Name, Budget Category or per Budget Head Click on "preview" to ...General Ledger Journals
This function should only be used if you want to post between Ledger accounts and Projects, for example when you want to make corrections, change incorrect postings, or reallocate certain costs. How to create a journal Select the date that you want ...Creditor Accounts
This function allows you to create accounts for the various suppliers of the school. This will facilitate the capturing of supplier transactions including invoices, credit notes and payments on this account. Please note that this is not the General ...Debtor Accounts
This function allows you to create accounts for the various debtors, collectors and other debtors of the school. This will facilitate the capturing of debtor transactions including journals, adjustments, handovers, and receipts on the account. Please ...Financial Year End
Financial Year-End Process Overview The Financial Year-End process in d6 allows administrators to finalize the previous financial year's data, post audit journals, and allocate net profit or loss to the appropriate equity or fund accounts. This ...