Documentation:UserManual/The Modules/Account/AccountTree
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[edit] Accounting tree
Related Issues: reconciliation, Invoices, Transfers
[edit] Explanation
Accounting trees are views of your double-entry multi-currency accounting at a particular time. Different views of the same accounting are possible. These views can include different currencies within the same tree. View type accounts cannot include transactions, they are used only to provide different views.
[edit] The screen:
[edit] Explanations
The balance of an account is equal to the addition of the included accounts, altered sometimes by currency adjustments.
[edit] Account types
| VIEW | View accounts are used only to design the hierarchic structure of the account tree |
| ASSET | Asset accounts (fixed assets...) |
| CASH | Available assets (cash, bank accounts...) |
| STOCK_INVENTORY | Inventory accounts |
| RECEIVABLES | Credit accounts |
| PAYABLES | Debit accounts |
| TAX | Tax accounts (VAT, state taxes...) |
| EQUITY | Opening and closing balance accounts |
| EXPENSE | Expense accounts (general expenses, sales expenses...) |
| INCOME | Revenue accounts (segmented by products or not) |
[edit] Example
[edit] Customer invoice and incoming payment
Lets take an invoice of 1000 EUR without tax and a VAT rate of 19,6%, that is 196 EUR. The total invoiced amount is 1196 EUR. The invoice creates the following transactions
| Description | Account type | Amount |
| Sales for 1000 EUR | Revenue | -1000 EUR |
| 19.6 % rate on sales | Tax | -196 EUR |
| Customer credit | Receivable | +1196 EUR |
Due to the double-entry accounting, the addition of all the entries of a single transaction must be 0. Later on, when the customer pays the 1196 EUR credit, the following transaction is automatically generated in the transfer form:
| Description | Account type | Amount |
| Customer credit | Receivable | -1196 EUR |
| Cashdesk 3 - Point of Sales 2 | Cash | +1196 EUR |
Both "Receivable" entries get balanced because the customer paid the entire amount. A simplified view of the accounts can be illustrated this way:
| Assets | 1000.00 EUR |
| Assets | 1196.00 EUR |
| Cashdesk 3 - Point of Sales 2 | 1196.00 EUR |
| FORTIS Bank | 0.00 EUR |
| Credit | 0.00 EUR |
| Assets | -196.00 EUR |
| VAT | -196.00 EUR |
| Revenue | 1000 EUR |
| Internet product sales | 1000 EUR |
| Documentation: UserManual | ||
| ← Cash flow transactions (transfer) | The accounting tree | Transactions of an account → |