chart-of-accounts.md

Chart Of Accounts

Introduction

A chart of Accounts (COA) is a listing of the Ledger codes that a State or ULB’s has identified and made available for recording transactions in its general ledger. COA is a standard data that need to be set up as per the National Municipal Accounting Manual or Respective State-wise manual. Click here for the NMAM manual. The COA definition can consist of 3 or 4 levels of hierarchy. Ex: Major->Minor->Detailed (3 levels) or Major->Minor->Sub Minor->Detailed (4 Levels). It is up to the state to define the levels required depending on the reporting needs. Detailed code is the node or the level at which the transaction is done.

Data Table

Sr. No*	Major Code*	Major head Description*	Minor Code*	Minor Head Description*	SubMinor Code	SubMinor Head Description	Detailed Heads (Ledgers)*	Ledger Code*	Type	Account Detail Type	Function Required	Budget Required
1	110	Tax Revenue	110-01	Property Tax	110-01-01	Property Tax - General Tax	Property Tax - General Tax - Residential	110-01-01-01	Income	​	Yes/No	Yes/No
2	210	Establishment Expenses	210-10	Salaries and Wages	​	​	Basic Pay	210-10-01	Expenses	​	Yes/No	Yes/No
3	350	Other Liabilities	350-11	Employee Liabilities	​	​	Salaries Unpaid	350-11-01	Liabilities	Drawing Officer	Yes/No	Yes/No
4	410	Fixed Assets	410-20	Buildings	​	​	Office Building	410-20-02	Assets	​	Yes/No	Yes/No

The data given in the table is sample data.

Procedure

Data Definition

Sr No	Column Name	Data Type	Data Size	Is Mandatory?	Definition/ Description
1	Major Code	Alphanumeric	50	Yes	The Major Code can be any number of digits, (though NMAM suggest the first 3 digits) of the GL Code to be the Major code, this will help in collating the reports at the Nation level
2	Major head Description	Text	250	Yes	The short name given to the Major code to easily identify the Account Name for individual code
3	Minor Code	Alphanumeric	50	Yes	The Minor Code can be any number of digits, the digits are configurable. The Minor code will help in collating the reports at the State level. Also, the State has the flexibility to define the minor codes
4	Minor Head Description	Text	250	Yes	The short name given to the Minor code to easily identify the Account Name for individual code
5	SubMinor Code	Alphanumeric	50	No	The SubMinor Code can be optional, State/ULB can set up a sub minor level code based on their requirement, this would help in facilitating the additional level of reporting and also detail transaction-level information (The SubMinor code is not listed in NMAM manual)
6	SubMinor Head Description	Text	250	No	The short name given to the SubMinor code to easily identify the Account Name for individual code
7	Detailed Heads (Ledgers)	Text	250	Yes	The short name for the Ledger Code, wherein users use this account head name while posting the transactions into the system
8	Ledger Code	Alphanumeric	50	Yes	A General Ledger Code (GL Code) is a string of 7 to 9 digit numeric characters assigned to each financial entry in a State/ULB ledger. A GL Code can be assigned to different debit or credit entries to make accounting transactions
9	Type	Text	250	No	The Type indicates the Income, Expenses, Liabilities and Assets which are mapped to each individual GL code. User can easily identify the GL code by this mapping
10	Account Detail Type	Text	250	No	The account details type is the subsidiary ledger, The Suppliers, Contractors and Employees are standard subsidiary ledger. This will help the user to identify the subsidiary ledger details while processing any bill transaction in the system
11	Function Required	Text	250	No	A GL Code can be linked for the validation of the Function, the user while posting a transaction can select a particular function to which transaction will be linked and this will facilitate easy Function wise reporting
12	Budget Required	Text	250	No	A GL Code can be linked for the validation of a Budget. User can have a validation check while posting a transaction into the system, this will facilitate tracking the amount usage

Steps to fill data

1. Download the data template attached to this page.
2. Have it open and go through all the headers and understand the meaning of them by referring 'Data Definition' section.
3. Make sure all the headers, its data type, field size and its definition/ description is understood properly. In case of any doubt, please reach out to the person who has shared this document with you to discuss the same and clear out the doubts.
4. Start filling the data starting from serial no. and complete a record at once. repeat this exercise until the entire data is filled into a template.
5. Verify the data once again by going through the checklist and taking care of each and every point mentioned in the checklist.

Checklist

The checklist is a set of activities to be performed once the data is filled into a template to ensure data type, size, and format of data is as per the expectation. These activities have been divided into 2 groups as given below.

Common Checklist

This checklist covers all the activities which are common across the entities.

Sr. No	Checklist Parameter	Example
1	Make sure that each and every point in this reference list has been taken care of	​Checklist​

Entity Specific Checklist

This checklist covers the activities which are specific to the entity.

Sr. No.	Checklist Parameter	Example
1	The Major, Minor and Sub minor Description Name should not contain any special characters	Tax Revenue : [Allowed] #Tax Revenue! : [Not allowed]
2	The Ledger Codes that are defined by the state team should be alphanumeric and Unique	110-01-01-01

Attachments

Configuration Data Templateconfiguration-data-template-chart-of-account.xlsx - 31KB

Sample Datasample-confugration-data-chart-of-account.xlsx - 25KB

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