Accounting modules lets you do invoicing and payment entries. ERPNext
accounts module lets you manage accruals and payment entries online.
Accounting module setup starts with defining ledgers in chart of
accounts. As per standard, accounting module has four head:
-
Income: Income account includes ledger of direct and indirect
income like sales, services, asset sold. -
Assets (aka application of funds)
1. Fixed assets
2. Investments
3. Current asset: has ledger of customers, banks account, cash
account and petty
cash. -
Liability (aka sources of funds)
1. Capital account
2. Current liability: has an account ledger of suppliers,
duties and taxes and loans
taken for financial institution. -
Expenses
1. Direct expenses: has ledger like cost of goods sold and raw
material
2. Indirect expenses ledgers like traveling expenses, bank
charges etc.
Creating all possible ledgers in chart of accounts will enable you to
proceed with transactions like:
- Sales invoice (aka invoice, bill, proforma invoice):
Sales invoice is transaction which works as invoice for customer and
where income is booked against relevant income ledger.
Sales invoice prepared will give you reports like account receivables,
GL etc.
-
Purchase invoice:
Purchase invoice is transaction where buying expenses are booked when
purchase of goods / services is done. -
JV:
JV is done on actual realization of payment from customer and when
payment is made to our supplier. Also accounting transaction like
contra voucher, cash voucher, debit note and credit note scenarios can
be covered.
Reports:
- Financial statements
Balance sheet
Profit and loss account - Account payable
- Account receivables
- Sales and purchase expenses and much more