Accounting Overview

The Accounting module is the financial backbone of Pinkapple ERP. It houses the double-entry general ledger, the chart of accounts hierarchy, GL posting rules, journal management, and financial reporting.

Core Concepts

Double-Entry Accounting

Every financial transaction in Pinkapple creates balanced journal entries — for every debit there is an equal credit. This applies to:

• Manual journal entries created by accountants
• Automated entries from loan disbursements, deposit interest, fees, etc.
• System-generated entries from EOD processing

The GL Hierarchy

Pinkapple's general ledger is built on a 6-level hierarchy:

Foundation Account (7 types: Asset, Liability, Equity, Income, Expense, Contingent Asset, Contingent Liability)
  └── GL Code Template (defines segment patterns per foundation)
      └── Major Account Header (top-level grouping, e.g., "Cash & Bank")
          └── Account Header (mid-level grouping, e.g., "Cash on Hand")
              └── Chart of Account (the actual GL account, e.g., "Cash on Hand — UGX")
                  └── Sub-Ledger (granular tracking: per client, per product, per till)

Each level builds on the one above, creating a structured, navigable chart of accounts.

Foundation Accounts

Foundation accounts are the top-level classification, seeded by the system:

Prefix	Category	Sub-Category	Type
1	DEBIT	Balance Sheet	Asset
2	CREDIT	Balance Sheet	Liability
3	CREDIT	Balance Sheet	Equity
4	CREDIT	Profit & Loss	Income
5	DEBIT	Profit & Loss	Expense
6	DEBIT	Balance Sheet	Contingent Asset
7	CREDIT	Balance Sheet	Contingent Liability

Module Structure

The accounting module spans two areas of the application:

Administration → Accounting (Setup)

Configuration pages for the GL structure:

Page	Purpose
Chart of Accounts	Build and manage the COA hierarchy
GL Posting Rules	Define rule headers that map operations to GL entries
GL Rule Details	Configure the debit/credit lines within each rule
GL Posting Approval	Approval policies and authority limits for GL postings

Accounting → Operations (Day-to-Day)

Operational pages for daily accounting work:

Page	Purpose
GL Journals	Create, view, and manage journal batches and entries
Back-Office Posting	Post journal entries using GL posting rules
GL Reconciliation	Reconcile GL accounts
Financial Reports	Trial balance, balance sheet, income statement
Chart of Accounts (View)	Read-only COA view from operations

Workspace Reference

Use the accounting menu when you need to configure financial structure or review financial outcomes. The setup workspaces shape how operations post; the operations workspaces show and control the accounting results.

Workspace	How Users Reach It	What Users Usually Do There	Accounting Implication
Chart of Accounts	Accounting -> Setup -> Chart of Accounts	Create account groups, posting accounts, control accounts, and sub-ledger anchors.	Defines which accounts journals and automated rules can post to.
GL Posting Rules	Accounting -> Setup -> GL Posting Rules	Create rule headers and rule details for debit and credit lines.	Converts operational events into balanced accounting entries.
GL Posting Approval	Accounting -> Setup -> GL Posting Approval	Define approval policies, approval attributes, and posting authority.	Controls which GL journals can be posted immediately and which require review.
GL Configuration	Accounting -> Setup -> GL Configuration	Review accounting defaults used by financial processing.	Sets finance behavior that other services inherit.
Project Control	Accounting -> Setup -> Project Control	Maintain projects, work breakdown rows, budget-control anchors, and shared fund-control structure.	Links budgets, obligations, funding controls, and spending traces to the chart of accounts.
Back-Office Posting	Accounting -> Operations -> Back-Office Posting	Create controlled postings from configured GL rules.	Creates journals without bypassing the posting-rule framework.
GL Journals	Accounting -> Operations -> GL Journals	Review, submit, approve, and post journal batches.	The final ledger record for manual and system-originated financial activity.
GL Reconciliation	Accounting -> Operations -> GL Reconciliation	Reconcile GL accounts against operational or external balances.	Confirms the ledger agrees with supporting records.
Financial Reports	Accounting -> Operations -> Financial Reports	Run trial balance, income statement, balance sheet, and other finance reports.	Turns approved ledger balances into management and statutory reporting.

TIP

If a service operation has a financial impact, the expected accounting route is service screen -> approval or execution -> financial event -> GL posting rule -> journal batch -> report. Avoid creating manual journals to compensate for weak setup unless finance intentionally records an adjustment.

For a concrete finance validation example, see Operation To Financial Statements.

How Automated GL Posting Works

When a financial event occurs (loan disbursement, deposit interest, fee charge), the system:

1. Looks up the GL posting rule — Finds the rule header bound to the operation via system tags
2. Resolves each detail line — For each debit/credit line in the rule, determines the COA account and amount
3. Creates a journal batch — Groups all lines into a balanced batch
4. Posts the journal entry — Records the entry against the fiscal period
5. Updates sub-ledgers — If sub-ledger tracking is configured, updates the granular balances

This happens atomically — either all lines post or none do.

INFO

The GL posting engine is shared across all modules. Whether a journal comes from lending, deposits, assets, shares, or manual entry, it follows the same posting pipeline and the same approval rules.

Period Management & Close

Pages for managing the fiscal period lifecycle:

Page	Purpose
Posting Dates & Periods	How posting dates map to fiscal periods
Month-End Close	Period close process, readiness checks, period-end actions
Year-End Close	Fiscal year close, retained earnings rollforward
Budget Control	Budget creation, commitments, reconciliation
Multi-Currency	FX management, dual-balance tracking, revaluation
Intercompany	IC transactions and consolidation elimination
Account Balances	Daily balance tracking, balance queries
Financial Statement Builder	Template-driven FS generation

Setup Sequence

1. Chart of Accounts — Create your GL account hierarchy
2. GL Posting Rules — Define rules for each type of transaction
3. GL Rule Details — Add debit/credit lines to each rule
4. GL Posting Approval — Configure approval policies
5. Bind rules to products (loans, deposits, etc.)
6. Financial Statement Builder — Configure report templates
7. Set up Multi-Currency if operating in multiple currencies
8. Configure Budgets for budget control

Related Guides

• Operation To Financial Statements
• Project Fund Control
• GL Posting Rules
• GL Journals
• Back-Office Posting
• Financial Reports