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

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.

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.)