# Chart of accounts The **chart of accounts (COA)** is the list of all the accounts used to record financial transactions in the general ledger of an organization. The chart of accounts can be found under {menuselection}`Accounting --> Configuration --> Chart of Accounts`. When browsing your chart of accounts, you can sort the accounts by {guilabel}`Code`, {guilabel}`Account Name`, or {guilabel}`Type`, but other options are available in the drop-down menu ```{image} chart_of_accounts/drop-down.png :alt: Drop-down toggle button ``` ```{image} chart_of_accounts/chart-of-accounts-sort.png :alt: Group the accounts by type in Odoo Accounting ``` (chart-of-account-create)= ## Configuration of an account The country you select during the creation of your database (or additional company in your database) determines which {doc}`fiscal localization package <../../fiscal_localizations>` is installed by default. This package includes a standard chart of accounts already configured according to the country's regulations. You can use it directly or set it according to your company's needs. To create a new account, go to {menuselection}`Accounting --> Configuration --> Chart of Accounts`, click {guilabel}`Create`, and fill in (at the minimum) the required fields ({guilabel}`Code, Account Name, Type`). :::{warning} It is not possible to modify the **fiscal localization** of a company once a journal entry has been posted. ::: ### Code and name Each account is identified by its {guilabel}`Code` and {guilabel}`Name`, which also indicate the account's purpose. (chart-of-account-type)= ### Type Correctly configuring the **account type** is critical as it serves multiple purposes: - Information on the account's purpose and behavior - Generate country-specific legal and financial reports - Set the rules to close a fiscal year - Generate opening entries To configure an account type, open the {guilabel}`Type` field's drop-down selector and select the corresponding type from the following list: ```{eval-rst} +---------------+--------------+-------------------------+ | Report | Category | Account Types | +===============+==============+=========================+ | Balance Sheet | Assets | Receivable | | | +-------------------------+ | | | Bank and Cash | | | +-------------------------+ | | | Current Assets | | | +-------------------------+ | | | Non-current Assets | | | +-------------------------+ | | | Prepayments | | | +-------------------------+ | | | Fixed Assets | | +--------------+-------------------------+ | | Liabilities | Payable | | | +-------------------------+ | | | Credit Card | | | +-------------------------+ | | | Current Liabilities | | | +-------------------------+ | | | Non-current Liabilities | | +--------------+-------------------------+ | | Equity | Equity | | | +-------------------------+ | | | Current Year Earnings | +---------------+--------------+-------------------------+ | Profit & Loss | Income | Income | | | +-------------------------+ | | | Other Income | | +--------------+-------------------------+ | | Expense | Expense | | | +-------------------------+ | | | Depreciation | | | +-------------------------+ | | | Cost of Revenue | +---------------+--------------+-------------------------+ |Other | Other | Off-Balance Sheet | +---------------+--------------+-------------------------+ ``` #### Assets Some **account types** can **automate** the creation of {ref}`asset ` entries. To **automate** entries, click {guilabel}`View` on an account line and go to the {guilabel}`Automation` tab. You have three choices for the {guilabel}`Automation` tab: 1. {guilabel}`No`: this is the default value. Nothing happens. 2. {guilabel}`Create in draft`: whenever a transaction is posted on the account, a draft entry is created but not validated. You must first fill out the corresponding form. 3. {guilabel}`Create and validate`: you must also select a {guilabel}`Deferred Expense Model`. Whenever a transaction is posted on the account, an entry is created and immediately validated. ### Default taxes In the {guilabel}`View` menu of an account, select a **default tax** to be applied when this account is chosen for a product sale or purchase. ### Tags Some accounting reports require **tags** to be set on the relevant accounts. To add a tag, under {guilabel}`View`, click the {guilabel}`Tags` field and select an existing tag or {guilabel}`Create` a new one. ### Account groups **Account groups** are useful to list multiple accounts as *sub-accounts* of a bigger account and thus consolidate reports such as the **Trial Balance**. By default, groups are handled automatically based on the code of the group. For example, a new account `131200` is going to be part of the group `131000`. You can attribute a specific group to an account in the {guilabel}`Group` field under {guilabel}`View`. #### Create account groups manually :::{note} Regular users should not need to create account groups manually. The following section is only intended for rare and advanced use cases. ::: To create a new account group, activate {ref}`developer mode ` and head to {menuselection}`Accounting --> Configuration --> Account Groups`. Here, create a new group and enter the {guilabel}`name, code prefix, and company` to which that group account should be available. Note that you must enter the same code prefix in both {guilabel}`From` and {guilabel}`to` fields. ```{image} chart_of_accounts/account-groups.png :alt: Account groups creation. ``` To display your **Trial Balance** report with your account groups, go to {menuselection}`Accounting --> Reporting --> Trial Balance`, then open the {guilabel}`Options` menu and select {guilabel}`Hierarchy and Subtotals`. ```{image} chart_of_accounts/chart-of-accounts-groups.png :alt: Account Groups in the Trial Balance in Odoo Accounting ``` ### Allow reconciliation Some accounts, such as accounts made to record the transactions of a payment method, can be used for the reconciliation of journal entries. For example, an invoice paid with a credit card can be marked as {guilabel}`paid` if reconciled with its payment. Therefore, the account used to record credit card payments needs to be configured as **allowing reconciliation**. To do so, check the {guilabel}`Allow Reconciliation` box in the account's settings, and {guilabel}`Save`; or enable the button from the chart of accounts view. ```{image} chart_of_accounts/chart-of-accounts-reconciliation.png :alt: Allow reconciliation for accounts in Odoo Accounting ``` ### Deprecated It is not possible to delete an account once a transaction has been recorded on it. You can make them unusable by using the **Deprecated** feature: check the {guilabel}`Deprecated` box in the account's settings, and {guilabel}`Save`. :::{seealso} - {doc}`cheat_sheet` - {doc}`../vendor_bills/assets` - {doc}`../vendor_bills/deferred_expenses` - {doc}`../customer_invoices/deferred_revenues` - {doc}`../../fiscal_localizations` - [Odoo Tutorials: Chart of accounts](https://www.odoo.com/slides/slide/chart-of-accounts-1630) - [Odoo Tutorials: Update your chart of accounts](https://www.odoo.com/slides/slide/update-your-chart-of-accounts-1658) :::