Chart of Accounts field guide

The Chart of Accounts (CoA) is the controlled vocabulary of the general ledger. It classifies assets, liabilities, equity, revenue, cost, tax, FX, and clearing balances. A good CoA stays stable while branches, projects, items, and industries are represented through dimensions.

Account master fields

Open Finance → Chart of Accounts → New.

Field	Example	Purpose and impact
Account code	131100	Immutable posting key
Name	Medicines inventory	User and report label
Type	Asset	Balance-sheet/P&L behavior
Parent	131000 Inventory	Hierarchy and roll-up
Company scope	company_uae	Legal isolation
Normal balance	Debit	Validation and sign display
Posting allowed	Yes	Leaf-account gate
Control account	Inventory	Subledger reconciliation
Currency	Company / foreign	Balance and revaluation
Tax category	None / input	Tax behavior
Dimensions	Warehouse, item	Required analysis
Active dates	2026-01-01 onward	Effective policy
Status	Active / blocked	Future selection

Account codes should not embed a branch or product if dimensions can represent it. A parent account is normally non-posting; users post to leaf accounts to preserve meaningful roll-ups.

Account types and hierarchy

Top-level types are assets, liabilities, equity, revenue, cost of sales, operating expense, other income/expense, tax, and statistical or memo accounts. Parent/child hierarchy controls trial balance, financial statements, and reporting groups.

For Demo Retail Group, 131100 Medicines inventory rolls to 131000 Inventory and 130000 Current assets. A user should see the hierarchy and report mapping before selecting an account.

Control accounts and subledgers

Control fields include subledger type, partner/item/asset requirement, reconciliation owner, tolerance, and direct-posting policy. Receivable, payable, inventory, fixed asset, payroll, tax, and bank accounts should reconcile to their subledgers.

If direct posting to a control account is disallowed, a manual journal must be rejected. If policy permits an adjustment, require reason, owner, source, and reconciliation reference. A control balance without subledger support is an exception.

Dimensions and mandatory rules

Dimension rules specify account, module, company, branch, required dimensions, allowed values, effective dates, and default source. A sales revenue line may require branch, channel, salesperson, and item; inventory may require warehouse, item, batch, and owner; rent may require branch and cost centre.

Defaults are suggestions. A transaction override is visible and may require approval. Do not create hundreds of nearly identical accounts simply to avoid dimension design.

Currency and revaluation

Account fields define company currency, foreign-currency allowance, revaluation method, gain/loss accounts, and rate source. A USD receivable stores transaction and functional amounts. Settlement posts realised FX; month-end revaluation posts unrealised FX for open balances.

Cash, receivable, payable, loan, and inter-company accounts often require revaluation. Inventory and fixed assets follow configured valuation policy. Never change account currency after postings without a controlled migration.

Tax and statutory mapping

Tax fields include tax category, input/output account, jurisdiction, return box, recoverability, withholding, and effective dates. Tax accounts should be mapped to codes and returns, not selected ad hoc on every journal.

A manual tax account journal requires tax code, period, authority reference, reason, and approval. Reconcile tax account balance to tax subledger and filed return.

Posting and period controls

Posting rules define allowed modules, source types, account status, company, period, currency, dimensions, and approval. A closed period rejects normal entries; adjustment period or approved reopen is required.

An account blocked for future use remains selectable in historic documents. Deactivation does not rewrite balances or remove comparative reports.

Opening balances and migrations

Opening-balance fields include migration batch, source account, target account, company, currency, period, debit/credit, dimension, source evidence, and approval. Opening debits and credits must balance by company and currency. Retained earnings and clearing accounts require explicit migration policy.

Never load opening inventory only to GL without item/warehouse subledger quantities. A trial balance can balance while inventory detail is wrong.

Allocations, recurring, and consolidations

Allocation rules store source account, basis, targets, percentages, rounding, effective dates, owner, and approval. Consolidation mappings store source company account, group account, currency, elimination, and translation rule. Inter-company revenue, COGS, receivable, payable, and unrealised margin need elimination references.

Recurring journals reference template, account lines, dimensions, frequency, period, and reversal. Generated entries remain separately auditable.

API and audit mapping

Account APIs use immutable ID, code, name, type, parent, posting flag, company, currency, dimensions, tax, effective dates, and idempotency key. A code change is usually a new version or alias, not a destructive update.

{"code":"131100","name":"Medicines inventory","type":"ASSET","parentId":"131000",
 "companyId":"company_uae","postingAllowed":true,"requiredDimensions":["WAREHOUSE","ITEM"],
 "activeFrom":"2026-01-01"}

Audit records account creation, parent change, posting flag, mapping, dimension rule, status, user, reason, approval, request ID, and effective date.

Reconciliation and practice

Reconcile trial balance, control accounts, subledgers, dimensions, tax returns, bank, inventory, assets, payroll, inter-company, FX, and opening balances. Exceptions include posting to parent, missing dimension, inactive account, direct control posting, unbalanced migration, and account used outside company scope.

Practice: design a five-level CoA, create inventory, receivable, payable, tax, bank, revenue, COGS, FX, and suspense accounts, map dimensions, load opening balances, post sales/purchases, revalue FX, allocate overhead, and run consolidation elimination. Explain every field, type, hierarchy, precision, permission, status, journal, tax, API ID, and audit event.

Related: Advanced GL Mapping, Journal Entry field guide, Company field guide, Tax field guide, and API cookbook.