ExplainerChecked against ERPNext v16

ERPNext chart of accounts, explainedEvery rupee has an address.

Open ERPNext’s Indian chart of accounts,and watch where each document posts.

The tree, open

This is the chart ERPNext sets up for an Indian company. Click any account, or a document to see where it posts.

There is no Equity root in this chart. Capital sits in “Capital Account” under Source of Funds (Liabilities), so it shows on the balance sheet with your liabilities.

Show where a document posts

Application of Funds (Assets) › Current Assets › Accounts Receivable

Debtors

AssetBalance SheetLedgerReceivable

Customer balances. Every entry here must name the customer.

Set as the company’s Default Receivable Account.

The defaults it fills — and the gaps

When the company is created, ERPNext points each default at the first matching account. On this chart three find nothing.

Default Cash AccountCashfirst account of type Cash
Default Bank Account— left emptyfirst account of type Bank
Round Off AccountRounded Offfirst account of type Round Off
Accumulated Depreciation AccountAccumulated Depreciationsfirst account of type Accumulated Depreciation
Depreciation Expense AccountDepreciationfirst account of type Depreciation
Capital Work In Progress Account— left emptyfirst account of type Capital Work in Progress
Asset Received But Not Billed— left emptyfirst account of type Asset Received But Not Billed
Default Cost of Goods Sold AccountCost of Goods Soldfirst account of type Cost of Goods Sold
Stock Received But Not BilledStock Received But Not Billedfirst account of type Stock Received But Not Billed
Default Inventory AccountStock In Handfirst account of type Stock
Stock Adjustment AccountStock Adjustmentfirst account of type Stock Adjustment
Default Receivable AccountDebtorsfirst account of type Receivable
Default Payable AccountCreditorsfirst account of type Payable
Write Off AccountWrite Offaccount named Write Off
Exchange Gain / Loss AccountExchange Gain/Lossaccount named Exchange Gain/Loss
Gain/Loss Account on Asset DisposalGain/Loss on Asset Disposalaccount named Gain/Loss on Asset Disposal

Add your bank account under Bank Accounts, and set the asset accounts before you buy your first asset.

Questions, answered

Frequently asked questions

The “India - Chart of Accounts”: Application of Funds (Assets), Source of Funds (Liabilities), Income and Expenses, with groups such as Current Assets, Duties and Taxes and Stock Expenses under them.

There is no separate Equity root. Capital sits in Capital Account under Source of Funds (Liabilities).

It changes how ERPNext treats the account. Receivable and Payable need a customer or supplier on every entry, Bank and Cash can be used on a Payment Entry, and Stock holds the value of stock in your warehouses.

In this chart Bank Accounts is a group with nothing under it. Add your bank account under it and set it as the default.

The India Compliance app adds them under Duties and Taxes.

Keep going

SimulatorERPNext GL entries explained ToolQuickBooks / Xero → ERPNext account mapper ChecklistCompany & chart of accounts checklist

Talk to us, or get a quote in two minutes

Want a chart of accounts that fits your business?

We shape the chart around how you report, set every company default, and bring in your opening balances. Talk to a consultant.

+91 62358 66111 WhatsApp usorGet a quote

or write to info@acube.co

Kochi (Kadavanthra & Infopark) · Thiruvananthapuram · across India & overseas · In business since 2011

Loading…