Manufacturing Company Chart of Accounts (COA)

This user manual explains how to create and manage a Chart of Accounts (COA) for a manufacturing company in your accounting system.

1. Overview

The Chart of Accounts is structured into three levels:

2. Account Structure

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2.1 Assets

2.2 Liabilities

2.3 Equity

2.4 Revenue

2.5 Expenses

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3. Step-by-Step Setup Process

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Step 1: Create Account Head

Go to: Settings → Chart of Accounts → Account Head Create
Example: Assets, Liabilities, Income, Expenses

Step 2: Create Account Group

Select Account Head → Create Subgroup
Example: Current Assets under Assets

Step 3: Create Ledger

Select Account Group → Create Ledger
Example: Cash in Hand under Current Assets
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4. Manufacturing Special Accounts

Account Name Description
Raw Materials Tracks material purchases
Work in Progress (WIP) Tracks incomplete production
Finished Goods Tracks completed products
Factory Overhead Indirect production costs

5. Example Coding Structure

Code Account
1000 Assets
1100 Current Assets
1110 Cash in Hand
2000 Liabilities

6. System Field Mapping

7. Best Practices

8. Conclusion

This structure ensures accurate financial reporting and efficient management of manufacturing costs.