7.1 Accounts Masters

• Accounts Masters define the base structure of accounting in ERPNext.
• All accounting transactions depend on these masters.

1. Chart of Accounts

• Tree structure of all ledger accounts
• Defines where debit and credit entries are posted
• Main Groups: Assets , Liabilities , Equity , Income , Expenses

Use:

• Controls accounting impact of all transactions
• Helps generate Balance Sheet & P&L

2. Company

• Defines company-level accounting settings
• Includes: Company name & address , Default currency , Default accounts , Linked fiscal year

Use:

• All transactions are recorded under a company
• Sets default accounting behavior

3. Fiscal Year

• Defines accounting year period
• Includes: Start date , End date

Use:

• Used for reports and financial statements
• Helps year-wise accounting and closing

4. Cost Center

• Used to track income and expenses department-wise

Use:

• Expense analysis
• Profitability tracking
• Reporting by department/project

5. Bank Account

• Represents company bank accounts

Use:

• Used in Payment Entry
• Tracks bank balance
• Linked with General Ledger

6 Cash Account

• Represents physical cash

Use:

• Cash payments and receipts
• Tracks cash-in-hand balance

7. Taxes & Charges

• Defines tax structure (GST, VAT, etc.)

Use:

• Automatically applied in invoices
• Ensures correct tax accounting