Chart of Account Applet

Purpose and Overview

The Chart of Account Applet is the architectural backbone of your financial system. It provides a centralized interface to define, structure, and control the complete hierarchy of your organization’s financial ecosystem—from high-level Companies and Sets of Books down to granular General Ledger (GL) Codes and Categories.

Key Features Overview

Who Benefits from This Applet?

Finance Managers:

• Full control over the financial reporting structure
• Granular management of Fiscal Years with specific locking mechanisms (LOCK_GL, LOCK_TXN, LOCK_ALL)
• Tools to merge or restructure GL codes as the business evolves using the “Merge” workflow
• Detailed visibility into the hierarchy of accounts

Accountants & Bookkeepers:

• Quick lookup and verification of GL Codes via the Chart search
• Streamlined creation of new accounts when needed
• Clear understanding of account categorizations for accurate journal entries
• Efficient bulk updates via file imports for Categories and Codes

System Administrators:

• Centralized configuration of Company and Set of Books entities
• Role-based permission management for sensitive financial data
• Audit logging for all structural changes
• Integration configuration via webhooks

Executive Leadership:

• Standardized financial structure across all business units
• Consistent reporting and analysis
• Compliance with regulatory requirements
• Clear audit trail for financial decisions

What Problems Does This Solve?

The Disorganized Ledger Problem:

Without a centralized and disciplined system, financial accounts can become fragmented, inconsistent, and duplicated. Common issues include:

• Inconsistent account naming conventions
• Duplicate GL codes for the same purpose
• Difficulty in rolling up data for financial reports
• Complexities in managing fiscal periods across different entities
• Manual errors in account classification

The Chart of Account Applet Solution:

• Structured Hierarchy - Enforces a clear Section → Category → Code relationship
• Unified Management - Manage multiple Companies and Sets of Books in one place
• Flexible Maintenance - Easily merge duplicates with a guided “Source → Target” workflow
• Fiscal Control - Precise definition of financial periods with 4-level locking status
• Automated Imports - Bulk upload capabilities to set up or migrate accounts quickly
• Multi-Dimensional Analysis - Segments, Dimensions, Profit Centers, and Projects for granular reporting

A short introduction to Chart of Account Applet:

Key Features Overview

Sidebar Menu Reference

A quick guide to every option available in the applet’s sidebar.

Key Concepts

Key Terms

Understanding the Financial Hierarchy

At the heart of the applet is a strict 3-level hierarchy designed to ensure accurate financial reporting.

Visual Hierarchy:

Organization
│
├── GL Section (Level 1) ──→ Assets, Liabilities, Equity, Revenue, Expenses
│   │
│   └── GL Category (Level 2) ──→ Current Assets, Fixed Assets, Trade Debtors
│       │
│       └── GL Code (Level 3) ──→ 1000-01 Petty Cash, 1010-01 Bank ABC
│
├── Company ──→ Legal entity with currency and fiscal settings
│   │
│   └── Set of Books ──→ Accounting book container
│       │
│       └── Ledgers & Sub-Ledgers ──→ Detailed transaction tracking
│
└── Fiscal Year ──→ Accounting periods with locking controls
    │
    └── Fiscal Periods ──→ Monthly/custom periods with status controls

The “Core Triangle” of Chart of Accounts

To effectively manage the system, understand how GL Sections, GL Categories, and GL Codes work together:

How they link:

1. You create a GL Section (e.g., Assets)
2. You create a GL Category under that section (e.g., Current Assets)
3. You create GL Codes within the category (e.g., 1001 Petty Cash, 1002 Cash at Bank)
4. When transactions are posted, they go to the GL Code, which rolls up to Category, then to Section

Fiscal Control Logic

The system uses a 4-tier locking mechanism to protect your financial data integrity:

Quick Start Guide

Get your financial structure ready with these essential workflows.

For Admins: Initial Organization Setup

Goal: Establish the legal and accounting entities for the system.

1. Verify Company Details (Sidebar > Companies):

   • Verify the Company Code, Name, Registration No, and Currency in the Main tab.

2. Create Ledgers (Companies > Ledgers):

   • Create the financial ledgers for the company.
   • Required Fields: Ledger Code, Ledger Name, Ledger Type (Primary/Secondary/Consolidated), Currency.
   • Note: A company can have multiple ledgers, but typically one Primary ledger is required.

3. Configure Defaults (Companies > Default GL Codes):

   • Prerequisite: Ensure your Chart of Accounts has GL Codes created. If this is a new setup, you may need to import or create GL Codes first (see “Build the Hierarchy” section).
   • Map critical Default GL Codes to ensure automation works. This is split into several tabs:
     • General: Retained Earnings, Profit/Loss, Non-Stock & Trade-In, Fixed Asset Register, Rounding, Settlement Charges.
     • Entity: Trade/Non-Trade Debtor & Creditor accounts, Merchant Receivable/Payable, Employee Payable.
     • Sales/Purchase: Sales/Purchase accounts, Returns, Discounts, Tax accounts.
     • Stock: Stock Adjustment, Reset MA, Stock Balance, COGS, Inventory Not Invoiced, Raw Material/WIP/Finished Goods/NSTI Stock & COGS.
     • Forex: Forex Gain, Forex Loss.
     • Consignment: Consignment Stock, Consignment Liability.

4. Create Set of Books (Sidebar > Set Of Books):

   • Create a Set of Books by providing a Name.
   • Navigate to the Ledgers tab to link your created Ledgers to this Set of Books.

5. Set Fiscal Year (Sidebar > Fiscal Year):

   • Select the Company.
   • Enter a Name for the fiscal year (e.g., “FY 2024”).
   • Define the Date Start and Date End.
   • The system will auto-generate the fiscal periods.

For Finance Managers: Build the Hierarchy

Goal: Create the account structure for daily operations.

1. Review Sections (Sidebar > GL Section):

   • GL Sections typically come pre-populated (e.g., Current, Fixed Assets, Long Term Liabilities, Equity, Revenue, Expenses).
   • You can create new sections or edit existing ones to update their Name or Account No.
   • Editable Fields: Name, Account No.

2. Create Categories (Sidebar > GL Category):

   • Create categories to group accounts (e.g., “Current Assets”, “Fixed Assets”).
   • Required Fields: GL Category Code (immutable after creation), GL Category Name.
   • Optional Fields: Description, Account No.
   • Note: Categories are created independently. To link a Category to a Section, edit the Category and use the GL Section tab to assign it.

3. Link Categories to Sections (GL Category > Edit > GL Section tab):

   • Open the GL Category you created.
   • Navigate to the GL Section tab.
   • Add the appropriate GL Section to establish the hierarchy.
   • This is how the system knows that “Current Assets” belongs under “Assets”.

4. Add GL Codes (Sidebar > GL Code or Chart view):

   • Create individual accounts (e.g., “1001 - Petty Cash”).
   • Required Fields: GL Code (immutable after creation), GL Name, Chart of Account, GL Category.
   • Optional Fields: Description, Account No.

Example Structure:

1000 - Assets                    (GL Section)
├── 1100 - Current Assets        (GL Category, linked to Assets via GL Section tab)
│   ├── 1101 - Petty Cash        (GL Code)
│   ├── 1102 - Cash at Bank - ABC
│   ├── 1103 - Cash at Bank - XYZ
│   └── 1110 - Trade Debtors
├── 1500 - Fixed Assets          (GL Category, linked to Assets via GL Section tab)
│   ├── 1501 - Office Equipment
│   ├── 1502 - Motor Vehicles
│   └── 1510 - Accumulated Depreciation

For Accountants: Daily Maintenance

Goal: Maintain accuracy of the accounts.

1. Lookup Codes: Use the Chart view to quickly find the correct GL code for a transaction

2. Create New Codes (Sidebar > GL Code):

   • Select Chart of Account and Category
   • Enter GL Code number and name

3. Merge Codes (Sidebar > GL Code Merge):

   • If duplicates are found:
     • Select the Chart of Account
     • Select the GL Category
     • Select Source GL Code (the duplicate)
     • Select Target GL Code (the correct one)
     • Click MERGE, then CLICK AGAIN TO CONFIRM
   • All history moves to Target; Source is deactivated

4. Fiscal Closing (Sidebar > Fiscal Year):

   • At month-end, open the Fiscal Year
   • Navigate to the Fiscal Period tab
   • Click on the specific period row to open Fiscal Period Details
   • Change the Closing Status dropdown (OPEN → LOCK_GL, LOCK_TXN, or LOCK_ALL)
   • Click SAVE

Chart of Accounts Management

Tree View - Your Financial Map

Menu: Chart of Account

The main hierarchical view showing your complete account structure.

What You Can Do:

• ✓ Drill-down from Section → Category → Code
• ✓ Quick audit for misclassified accounts
• ✓ Search and filter accounts
• ✓ Create new Charts of Account
• ✓ Delete a Chart of Account (with confirmation)

Creating a Chart of Account:

• Required Fields: COA Code (immutable after creation), COA Name
• Optional Fields: Description

Tabs Available When Editing a Chart:

Note: Tab order is configurable via Applet Settings (CHART_OF_ACCOUNT_DETAILS_TAB_ORDER).

Segments Tab

In accounting, segments classify transactions by distinct operational divisions — such as business units, regions, or product lines — allowing financial reports to be broken down by each segment independently.

Add reporting segments to your COA for multi-dimensional analysis.

Required Fields: Segment Code (immutable after creation), Segment Name

Optional Fields: Description, Parent Segment (searchable dropdown, select “No Parent” for top-level)

Additional Fields: Ref 1 - Ref 5 (Code, Name, Description) for advanced tagging.

Editable After Creation: Segment Name, Description, Status, Parent Segment, Reference Fields

Use Cases:

• Track by Business Unit (e.g., Retail, Wholesale)
• Track by Region (e.g., North, South, East, West)
• Track by Product Line

Dimensions Tab

In accounting, dimensions (also called analysis dimensions) provide a flexible tagging system for transactions. Unlike the fixed GL Code hierarchy, dimensions let you cross-cut financial data by categories like departments, cost centers, or campaigns — without duplicating GL Codes.

Add custom dimensions for advanced reporting.

Required Fields: Dimension Code (immutable after creation), Dimension Name

Optional Fields: Description, Parent Dimension (searchable dropdown, select “No Parent” for top-level)

Additional Fields: Ref 1 - Ref 5 (Code, Name, Description) for advanced tagging.

Editable After Creation: Dimension Name, Description, Status, Parent Dimension, Reference Fields

Use Cases:

• Cost Centers (Marketing, Operations, IT)
• Product Categories
• Customer Segments

Profit Center Tab

In accounting, a profit center is any unit within an organization that generates its own revenue and bears its own costs. Assigning transactions to profit centers enables individual P&L statements per branch, department, or business line.

Define profit centers for departmental P&L tracking.

Required Fields: Profit Center Code (immutable after creation), Profit Center Name

Optional Fields: Description, Parent Profit Center (searchable dropdown, select “No Parent” for top-level)

Additional Fields: Ref 1 - Ref 5 (Code, Name, Description) for advanced tagging.

Editable After Creation: Profit Center Name, Description, Status, Parent Profit Center, Reference Fields

Use Cases:

• Department-level profitability
• Branch performance analysis
• Business unit comparison

Project Tab

In accounting, project tracking captures all revenue and expenses tied to a specific initiative — such as construction, a client engagement, or an internal upgrade — allowing organizations to monitor project-level profitability and budgets separately from day-to-day operations.

Track financial data by project.

Required Fields: Project Code (immutable after creation), Project Name

Optional Fields: Description, Parent Project (searchable dropdown, select “No Parent” for top-level)

Additional Fields: Ref 1 - Ref 5 (Code, Name, Description) for advanced tagging.

Editable After Creation: Project Name, Description, Status, Parent Project, Reference Fields

Use Cases:

• Capital expenditure projects
• Client engagements
• Internal initiatives

Master Data Management

GL Section

Menu: GL Section

Define the main reporting sections that appear on financial statements.

Standard Sections:

GL Category

Menu: GL Category

Group accounts within sections for organized reporting.

When you click on a GL Category, you access three tabs:

Details Tab:

• GL Category Code - Read-only after creation
• GL Category Name - Editable
• Chart of Account - Editable (move category to different COA)
• GL Category - Parent category (for sub-categories)
• Description - Editable
• Account No. - Editable

GL Code Tab:

• Create GL Codes directly from within a Category (Category is auto-selected)
• GL Codes created here also appear in the GL Code module

GL Section Tab:

• Link the Category to a specific GL Section

GL Code

Menu: GL Code

The primary workspace for managing individual accounts.

Required Fields for GL Code Creation:

Tabs Available When Editing a GL Code:

Organization Setup

Company Management

Menu: Companies

Companies are automatically listed after the Chart of Accounts is selected in the Organization Applet.

Main Tab:

• Company Code - Read-only
• Company Name - Editable
• Company Registration No. - Editable
• Currency - Editable (searchable dropdown)
• Tax ID - Editable
• SST ID - Editable
• Chart of Account - Editable (dropdown)
• Inventory Cost Base On - Editable (dropdown)

Ledgers Tab:

In accounting, a ledger is the principal book (or digital record) that contains all financial transactions for a company. Sub-ledgers break this down further by individual GL Code for detailed tracking.

Create and manage company ledgers.

Required Fields: Ledger Code, Ledger Name, Ledger Type (Primary/Secondary/Consolidated), Currency

After creation, click on the Ledger to access:

Opening Balance Tab (Primary Ledgers only):

• Enter opening balances for GL Codes linked to this ledger

Remove Journal Tab:

• Remove journal entries associated with this ledger

Fiscal Year Tab:

• View the list of fiscal years associated with this Company

Default GL Codes Tab:

Critical configuration for system automation.

Set of Books Management

Menu: Set Of Books

In accounting, a Set of Books is a complete, self-contained accounting record — grouping one or more ledgers together for a specific reporting purpose (e.g., statutory reporting, management reporting, or multi-currency consolidation).

Details Tab:

• Name - Editable

Ledgers Tab:

• Link existing Ledgers (created in Companies module) to the Set of Books
• Select from available Ledgers to add or remove from the Set of Books

Fiscal Year Management

In accounting, a fiscal year defines the 12-month period used for financial reporting and tax purposes. It may or may not align with the calendar year. Fiscal periods (usually monthly) within the year can be individually locked to prevent changes to finalized data.

Menu: Fiscal Year

Creating a New Fiscal Year

Required Fields:

• Company
• Name
• Start Date
• End Date

The system automatically generates fiscal periods based on your date range.

Fiscal Period Management

Each fiscal year contains monthly (or custom) periods. For each period:

How to Close a Month:

1. Open Fiscal Year and select the current year
2. Switch to the Fiscal Period tab
3. Find the month and change status from OPEN to LOCK_ALL

Bulk Operations

Import GL Category

Menu: Import GL Category

Bulk upload categories via CSV file.

How to Import:

1. Navigate to Import GL Category
2. Download Sample: Click the *Sample Format link to get the CSV template
3. Prepare Data: Fill in your rows following the template format
4. Upload: Drag & Drop your .csv file (or click Upload File)
5. Review: Check for any validation errors
6. Commit: Click ADD to finalize

Import GL Code

Menu: Import GL Code

Bulk upload GL codes to populate your chart quickly.

Template Headers: CHART_OF_ACC | GL_CATEGORY | GL_CODE | GL_NAME | DESC

How to Import:

1. Navigate to Import GL Code
2. Download Sample: Click the *Sample Format link to get the .csv template
3. Prepare Data: Fill in your rows. Ensure GL_CATEGORY matches exactly what is already in the system
4. Upload: Drag & Drop your .csv file (or click Upload File)
5. Review: The system will show a preview. Green ticks mean “Ready”. Red flags mean “Error” (hover to see why)
6. Commit: Click ADD to finalize

Maintenance Tools

GL Code Merge

Menu: GL Code Merge

If two codes were created for the same purpose (e.g., “Phone Exp” and “Telephone Bill”), use this tool to fix it without losing data.

The Workflow:

1. Navigate to GL Code Merge
2. Select Chart of Account: Choose the COA
3. Select GL Category: Choose the category (both codes must be in the same category)
4. Select Source GL Code: Pick the duplicate/incorrect code (e.g., “Phone Exp”)
5. Select Target GL Code: Pick the correct/final code (e.g., “Telephone Bill”)
6. Execute: Click MERGE, then click again to CONFIRM

What Happens:

• All transaction history moves from Source to Target
• Source GL Code is deactivated
• Target GL Code now contains all historical data

GL Code Create Item

Menu: GL Code Create Item

Bridge the gap between Accounting and Sales/Inventory.

Scenario: You have a GL Account “4000-01 Consulting Income”. You want to issue an Invoice for “Consulting”.

How to Use:

1. Navigate to GL Code Create Item
2. Select the GL Category from the dropdown
3. Click SEARCH to list all GL Codes in that category
4. Click CREATE to generate Items for the listed GL Codes

The system will generate a saleable Item linked to each GL Code, allowing the sales team to pick it in an invoice and automatically route revenue to the correct account.

Standard Account Structure & Compliance

Recommended Numbering Convention

Adopting a standard 4-digit or 5-digit code structure ensures your reports are readable and compliant.

Malaysian SST Compliance

For Malaysian entities, ensure your Default GL Codes are mapped to the following standard codes (or your equivalents) to ensure tax return generation works correctly:

• Input Tax Account (Purchase): e.g., 1410 - SST Input Tax
• Output Tax Account (Sales): e.g., 2310 - SST Output Tax
• SST Payable: 2311
• SST Suspense: 2312

Note: These must be configured in Companies > Default GL Codes.

Common User Scenarios

Scenario 1: Retail Business

Goal: Simple tracking of cash and inventory.

Structure: Uses a flat list of expenses with focus on point-of-sale tracking.

Key Needs:

• Separate GL Codes for “Cash at Shop” vs “Cash at Bank”
• Detailed “Cost of Goods Sold” to track product margins
• Multiple cash register accounts for reconciliation

Recommended Setup:

1100 - Cash at Shop Counter 1
1101 - Cash at Shop Counter 2
1110 - Cash at Bank - Daily Deposits
5000 - Cost of Goods Sold - Retail

Scenario 2: Manufacturing Company

Goal: Tracking production costs and work-in-progress.

Structure: Deep hierarchy for “Cost of Sales” with WIP tracking.

Key Needs:

• WIP Accounts: Raw Materials → Work In Progress → Finished Goods
• Overhead Allocation: Specific expense codes for Factory Rent vs Office Rent
• Settings: Enable SHOW_WIP_STOCK_VALUE in Admin Settings

Recommended Setup:

1300 - Raw Materials Inventory
1310 - Work In Progress
1320 - Finished Goods Inventory
5100 - Direct Labor Costs
5200 - Manufacturing Overhead
6000 - Factory Rent
7000 - Office Rent

Scenario 3: Multi-Branch Corporation

Goal: Consolidated reporting by location.

Structure: Unified Chart of Accounts used by all branches.

Key Needs:

• Use GL Segments or Profit Centers rather than duplicating GL codes
• Don’t create 6000-KL and 6000-JB; use 6000 and tag the Branch
• Configure each branch as a separate profit center

Recommended Approach:

Single GL Code: 6000 - Rent Expense
Tag with Profit Center:
├── PC-KL (Kuala Lumpur)
├── PC-JB (Johor Bahru)
└── PC-PG (Penang)

Settings & Configuration

General Settings

Found in: Settings > General Settings

Two collapsible panels:

Default GL Code A JSON textarea where you define fallback GL Code mappings. The system reads this configuration when automatically assigning GL Codes to transactions that do not have an explicit mapping elsewhere.

Closing Stock Balance Settings Slide toggles that control which inventory stock values appear in your financial reports (e.g., Balance Sheet, Profit & Loss). Each toggle corresponds to a stock category:

Click SAVE after changing any setting.

Personalization

Found in: Personalization icon in sidebar

Personal Default Settings

Set your preferred working context to avoid repeated selections:

• Default Branch: The system will auto-select this branch for new transactions
• Default Location: Your primary inventory location

Troubleshooting & FAQ

Common Issues

Issue: “Cannot delete GL Code”

• Cause: The code has been used in a transaction (even a voided one)
• Fix: You cannot delete it. Change its status to INACTIVE or use the GL Code Merge tool to move its history to another account

Issue: “Balance Sheet doesn’t balance”

• Cause: Opening Balances were entered incorrectly or Retained Earnings is not mapped
• Fix: Check Companies > Default GL Codes > General > Retained Earning. Ensure it points to a valid Equity account (e.g., 3100)

Issue: “Inventory value missing in Profit & Loss”

• Cause: The stock display settings are disabled
• Fix: Go to Settings > General Settings and enable SHOW_INVENTORY_STOCK_VALUE

Issue: “Cannot create transactions - Period locked”

• Cause: The fiscal period has been closed
• Fix: Check Fiscal Year > Fiscal Period and ensure the period status is OPEN or request admin to unlock

Issue: “GL Code not appearing in dropdown”

• Cause: The GL Code is inactive or not linked to the correct Chart of Account
• Fix: Check the GL Code status and ensure it’s linked to the active COA

FAQ

Q: What is the difference between a GL Section and a GL Category?
A: A GL Section is the highest level (e.g., Assets). A GL Category is a subdivision (e.g., Current Assets). GL Codes sit inside Categories.

Q: How do I lock a specific month?
A: Go to Fiscal Year → select the year → open the Fiscal Period tab → click on the specific period row to open Fiscal Period Details → change the Closing Status dropdown to LOCK_ALL → click SAVE.

Q: Can I manage multiple companies in this applet?
A: Yes. You can define multiple Companies and Sets of Books. When working, you can switch between contexts.

Q: What happens if I import a GL Code that already exists?
A: The system validates against duplicates. If a match is found, the row may be skipped or updated depending on the specific import logic, but generally, unique GL codes are enforced.

Q: Can I delete a GL Code after it has been used?
A: No. To maintain audit integrity, used codes cannot be deleted. Use GL Code Merge to consolidate it into another account, or simply Deactivate it.

Q: Where do I set the “Retained Earnings” account?
A: This is configured under Companies → Default GL Codes → General tab. This setting is strictly required for year-end closing processes.

Q: How do I handle a change in Fiscal Year dates?
A: Create a new Fiscal Year record. Ensure there is no gap between the old year end and the new year start. Short “stub” years are supported for transition periods.

Q: Can I have different GL Codes for different Sets of Books?
A: Yes, you can define specific mappings or use different Sets of Books to manage distinct reporting requirements for the same Company.

Related Applets

The Chart of Account applet is a foundational module. Its data is used by many other applets:

Technical Integration (Developer)

COA Sync from EMP

For syncing GL Codes from an external EMP system, use the following task scheduler configuration:

Jar File: plugin-wavelet-tasksched-copy-glcode-to-blg.jar
Main Class: taskscheduler.utility.CopyGLCodeToBlg.src.CopyGLCodeToBlg

Parameters:

Steps:

1. Upload Jar file via: Control Panel > System Admin > File Cabinet > File Manager
2. Create Task via: Control Panel > Developer > Plugins > Task Scheduler > Create Task
3. Run Task: List Task > Click "Run Now" for "CopyGLCodeBlg"
4. Verify in Akaun: Check GL Section, GL Category, GL Code in Chart of Account applet