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User must be able to select accounting rule "cash" or "accrual" at a product level
Page 10 of attached accounting summary document gives useful basic distinction between cash and accrual accounting.
2 The COA
Continue having the same design with four main headers
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New accounts can be either "header" or "detail" accounts to make things simpler for a user
Given general formula seems to be Assets = Liabilities + Equity, seems like 'Equity' in a required 'account header' also. - see Page 11, 22, of attached accounting summary document.
I would be interested in hearing what COA nirantara and GK accountants use (or any other MFI in community). On document pages 23, 24 is content about the 'classification of transactions' through chart of accounts and a sample chart of accounts for MFIs. How does nirantara and gk COA differ and why would be good to know.
2.1 Scope
For simplicity (for the first cut) have COA at organization level and run accounting reports at the branch level
- So system should associate all journal entries to branch which owns the entity that caused the entry (Ex: Loan account on which a disbursal occured)
- all user defined journal entries should also be associated with a branch
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3 Journal Entries
The 'accounting cycle' image provided on page 22 of attached accounting summary document provides a good visualisation of steps involved from 'economic activity step (transaction)' to closing books for a given cycle period (weekly/monthly/quarterly/yearly)
3.1 Automated Journal Entries
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