Lesson #3 - Chart of Accounts Becomes the General Ledger

Notice :  Please see this important update before trying to follow any of the steps described here.

This page should get you through defining your Fiscal Year and introducing opening entries in OpenERP, according to the examples provided in "Hour 3" of  TYAi24H.

To understand this section you'll need to:

1. read "Hour 3" of TYAi24H.
2. read the OpenERP book, section 8.5.1 Configuring Accounts, which you can find in the online documentation here...

http://doc.openerp.com/v6.0/book/1/1_3_Real_Case/1_3_Real_Case_db_setup.html#configuring-accounts

Assuming you are obliged to deliver your tax declarations by the first of April, you probably want to end your fiscal year a month before then, to give yourself some leeway.  I have prepared this Selenium browser automation script on that basis:


When setting up a purchase journal typically if you are purchasing "on account". You would setup Default debit account - pointing to a Expense/Purchase Expense Account
Default credit account - pointing to Liability/Account Payable Account

For a Sales Journal typically if your customers' are buying from you "on account". You would typically setup
Default Debit Side - pointing to Asset/Account Receivable Account
Default Credit Side - pointing to Income/Sales Income Account

Receivables Bank Journal (Receivables Bank Account <-- all incoming customer payments deposited here)
Default Debit Side - pointing to Asset/Bank Account - 1234 (receivables)
Default Credit Side - pointing to Asset/Account Receivable Account

Payables Bank Journal (Payable Bank Account <--all supplier payments are paid out of this account)
Default Debit Side - pointing to Asset/Bank Account - 5555 (account Payable)
Default Credit Side - pointing to Liabilities/Account Payable

We find it easier if each bank account has it's own separate g/L account.

We also recommend for good treasury cash management that companies have at least 4 accounts setup:
1) Bank Account 1 (A/R) <-- all incoming payments from customers are deposited here
2) Bank Account 2 (Master) <-- The main bank account of the company (no direct customer deposits, or wires, or electronic transactions)
3) Bank Account 3 (account payable) <-- all outgoing payments to suppliers are made from this account
4) Bank Account 4 (Payroll) <-- All employees and contractors are paid out of this account.

This make reconciliation a little easier.