Chart Of Accounts

The Chart of Accounts is the organised list of accounts used to record financial activity. It gives finance teams a consistent structure for reporting assets, liabilities, equity, income, expenses, and memo or contingent balances.

Use this guide when creating account groups, adding posting accounts, setting up control accounts, or reviewing how accounts should be used in posting rules.

Where To Open It

Open Accounting -> Setup -> Chart of Accounts or the equivalent accounting setup page available in your service context.

The exact menu name can vary by role, but the workspace should show account hierarchy, search, filters, approval status, and available row actions.

Workspace Reference

User Goal	What To Do In The Workspace	Result
Add a new posting account	Use the create action for chart-of-account records and complete the account identity, hierarchy, currency, and control-account fields.	The account becomes available for review and, after approval, can be selected by journals and posting rules.
Add or review account groups	Use the account-header and major-account-header actions where available.	Reporting groups stay structured before detailed posting accounts are added.
Review balances and usage	Open the account detail or statement action from the row.	Users can see account metadata, balances, and supporting activity without exposing internal IDs.
Create sub-ledger tracking	Use the sub-ledger action from the account row when the account is a control account.	Detailed balances can be tracked by customer, supplier, loan account, wallet, till, or another supported party.
Retire an account	Deactivate the account instead of deleting historical reporting structure.	Old activity remains reportable while new transactions stop using the account.

Account Hierarchy

Pinkapple organises accounts in levels so reports can roll up from detailed posting accounts to major financial statement categories.

Level	Purpose	Example
Foundation category	Broad accounting class.	Asset, Liability, Equity, Income, Expense.
Major account group	First management grouping inside a foundation category.	Cash and Bank Balances, Loans and Advances.
Account group	More specific reporting group.	Cash on Hand, Bank Current Accounts.
Posting account	The account selected by journals and posting rules.	UGX Cash on Hand, Airtel Wallet Clearing.
Sub-ledger tracking	Optional detailed balance tracking beneath a control account.	Customer, supplier, loan account, till, wallet.

Users post to approved posting accounts. The higher levels are used for grouping, reporting, and navigation.

Foundation Categories

Foundation categories control where an account appears on financial statements and whether its normal balance is debit or credit.

Category	Usual Statement	Normal Balance
Asset	Balance Sheet	Debit
Liability	Balance Sheet	Credit
Equity	Balance Sheet	Credit
Income	Profit and Loss	Credit
Expense	Profit and Loss	Debit
Contingent	Notes or memo reporting	Depends on usage

Administrators should not create accounts under the wrong category just to make a posting pass. The category affects reports and controls.

Creating Account Groups

Account groups help organise the chart before posting accounts are created.

When creating an account group, enter:

• a clear group name
• the parent group or foundation category
• a short code or segment where required
• an optional description explaining what belongs in the group
• active status where available

Keep the hierarchy simple. Too many levels make reports hard to read and account selection harder for users.

Creating Posting Accounts

Posting accounts are the accounts that journals and automated posting rules use.

Important fields usually include:

Field	Meaning	User Impact
Account name	Human-readable account name used in lookups and reports.	Users should be able to recognize the account without relying only on the code.
Account code or segment	The account's reporting segment inside the configured hierarchy.	Helps finance find and classify the account consistently.
Parent group	Where the account sits in the hierarchy.	Controls roll-up reporting and statement grouping.
Foundation category	Broad accounting class inherited through the hierarchy.	Determines whether the account belongs to assets, liabilities, equity, income, expenses, or contingent reporting.
Currency	Currency the account is intended to hold where applicable.	Prevents mixed-currency balances from being posted into the wrong account.
Control-account setting	Whether the account requires detailed sub-ledger tracking.	Forces postings to carry the correct customer, supplier, loan, deposit, wallet, till, or other detail.
Active status	Whether users can select the account for new activity.	Inactive accounts remain visible for history but should not receive new postings.
Description	Guidance on what should and should not be posted here.	Reduces ambiguous selection in journals and posting rules.

Use precise account names. For example, “Cash on Hand - UGX” is clearer than “Cash”.

Form Implications

Form Area	What It Controls	Mistake To Avoid
Identity	The account name, code segment, description, and visible reference users see in lookups.	Creating vague names such as “Receivable” when several receivable accounts exist.
Classification	The selected parent group and foundation category relationship.	Placing revenue, expense, asset, or liability accounts under the wrong reporting branch.
Currency	Which currency the account is meant to carry.	Using one account for multiple currencies unless the accounting policy explicitly supports it.
Control behavior	Whether detailed sub-ledger tracking is mandatory.	Turning off control-account behavior just to make a posting pass.
Status and approval	Whether the account is active and available after review.	Assuming a draft or pending account can be used by operational posting.

Account Codes

Account codes are generated from the configured account structure. Users should treat the code as a reporting and reference aid, not as the only source of meaning.

Good practice:

• keep names readable even when codes are visible
• avoid reusing similar names for different purposes
• do not rename accounts casually after they have activity
• use descriptions to explain intended use

Control Accounts And Sub-Ledgers

A control account summarises balances that must also be tracked in detail.

Examples:

Control Account Type	Detailed Tracking Usually Required
Customer receivables	customer or invoice balance
Supplier payables	supplier or payable balance
Loan receivables	loan account
Deposit liabilities	deposit account
Cash tills	till or drawer
Bank accounts	bank account or statement source
Wallet balances	wallet rail, service wallet, or provider balance

If posting fails because a sub-ledger is required, do not remove the control setting to bypass the error. Configure the correct detailed tracking or choose the proper account.

Approval

New or changed accounts may require approval before they can be used.

Common statuses:

Status	Meaning
Draft	Saved but not ready for use.
Pending Approval	Waiting for review.
Approved	Available for journals and posting rules.
Rejected	Sent back for correction.
Inactive	Retained for history but not used for new work.

Only approved active accounts should be used in posting setup.

Reviewing The Chart

Use search and filters to find accounts by:

• account name
• account code
• category
• parent group
• currency
• active or approval status

When reviewing, check whether accounts are duplicated, misclassified, inactive, missing descriptions, or missing required control-account settings.

Common Mistakes

Mistake	Better Practice
Creating one account per customer or loan.	Use sub-ledgers for detailed tracking below a control account.
Posting operational differences to suspense permanently.	Correct the setup and clear suspense promptly.
Using bank accounts for cash tills.	Use the correct cash, till, bank, wallet, or clearing account type.
Renaming active accounts without review.	Use controlled updates and preserve reporting clarity.
Creating accounts outside the approved hierarchy.	Maintain the hierarchy so reports roll up correctly.

Related Pages

• GL Posting Rules
• GL Rule Details
• Account Balances
• Financial Statement Builder