Accounts and Chart of Accounts

Ensuring your Chart of Accounts is correctly linked up between DEAR and your accounting system is crucial to the effective functioning of DEAR Inventory.


The Chart of Accounts is the list of all accounts your organisation has available to record your transactions. Having the right Chart of Accounts is important for classifying your transactions correctly, keeping your accounts accurate and generating meaningful reports to help you run your business better.


DEAR provides a default Chart of Accounts, but you can import a chart from your accounting system or your own custom chart. Make sure to consult with your accountant or bookkeeper before adding or editing any accounts. 


Once your Accounts have been uploaded to DEAR, you can add your Bank Accounts and then enter your Opening Balances.


NOTE: This article is about using DEAR in standalone mode. If you are using Xero or QBO, accounts are created in your accounting system and then synchronised with DEAR, where they appear in read-only format. See our guides for QuickBooks Online or Xero if you are using them as your accounting system.


Prerequisites


Table of Contents


Required Accounts

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DEAR Systems requires the following accounts (with the account settings listed below) to function correctly.

  • If you are using DEAR standalone, you can create accounts in DEAR by going to Settings → Reference Books → Financial → Chart of Accounts. 
  • If you are using Xero/QBO, you must create accounts in Xero/QBO. They will then be imported into DEAR when you next synchronise your accounts. You can view your Chart of Accounts by going to Settings → Reference Books → Financial →Chart of Accounts, but it will be read-only.

You can add more accounts to suit your business requirements – make sure to consult with your accountant or bookkeeper before adding or editing any accounts.


NOTE: Some accounts created in Xero and QBO require different settings to map correctly. Please check Xero Integration - Basic and QuickBooks Integration - Basic for more information if you are using these accounting systems. 


Already created by DEAR

  • Accounts Receivable
  • Accounts Payable
  • Sales Tax (GST, VAT...)
  • Sales/Revenue.


Required accounts


AccountAccount TypeSystem AccountAccepts Payments
Inventory ControlCurrent AssetNone

Doesn't accept payments

Inventory DiscrepancyExpenseNone

Doesn't accept payments

Cost of Goods SoldDirect Cost (DEAR standalone/Xero)
Cost of Sales - Supplies and Materials (QBO)
None

Doesn't accept payments


Default RevenueRevenueNone

Doesn't accept payments

Tax LiabilityLiabilityNone

Doesn't accept payments

Supplier DepositsCurrent AssetNoneAccepts payments
Customer CreditsCurrent LiabilityNoneAccepts payments


Optional Accounts


Inventory Accrual/Stock in Transit (requires Inventory Accrual to be enabled)


AccountAccount TypeSystem AccountAccepts Payments
Inventory Accrual (Goods Received, Not Invoiced)Current Asset OR
Current Liability
NoneDoesn't accept payments
Stock in Transit (Goods Invoiced, Not Received)Current AssetNoneDoesn't accept payments


Gift Card Liability (requires Gift Cards to be enabled)


AccountAccount TypeSystem AccountAccepts Payments
Gift Card LiabilityCurrent LiabilityNoneAccepts payments


Managing Accounts

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You can create, edit, or delete accounts from your Chart of Accounts when required. If you are using Xero or QBO, accounts are managed through your accounting system and will be read-only in DEAR.


Add an Account

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To add an account:

  1. Navigate to Settings Reference Books Financial Chart of Accounts.  All the different types of accounts are  grouped under various class headings (Asset, Liability, Expense, etc.). You can sort the screen to only show a particular class.
  2. Click + Account to add new Accounts.
  1. On the Add a new Account window, enter all the relevant details like Account Type, Account Code, Name of the account and also an optional description.
  2. Enable the account to accept payments by toggling the Accept payments button. This will let you use the account in the payment section of the Purchase and Sales modules.
  3. Once done, click Save.


Edit an Account

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You may make changes to your Chart of Accounts at any time.


To edit an Account:

  1. On the Chart of Accounts page, click the account to be edited.
  2. On the Edit Account window, make the desired changes to the account, then click Save.


Delete an Account

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An account needs to be archived first before it can be deleted. Once an account has been used in a transaction, it is no longer possible to delete the account. Unused accounts can be archived  so they can no longer be used for transactions.


To delete an Account:

  1. On the Chart of Accounts page, click the account to be deleted.
  2. On the Edit Account window, change the status from Active to Archived
  3. To archive more accounts, repeat Steps 1-2. Otherwise, click More actions Delete unused archived accounts to delete the archived accounts.


Import Chart of Accounts

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You can perform bulk actions such as deleting archived accounts and importing/exporting the Chart of Accounts from a spreadsheet by clicking More.


For a large number of Accounts or for quick import of the previous Chart of Accounts, information can be imported in CSV format.


To import a Chart of Accounts:

  1. Navigate to Settings Reference Books Financial Chart of Accounts.
  2. Click More actions Import. Here, you can click the plus sign on the left-hand corner to expand and see the description of all the required and optional column headings.
  3. Click Export current Chart of Accounts to CSV file to download the default template.
  4. Open the template using Excel or another spreadsheet program, then add, edit, and/or delete accounts, if necessary; then save and Upload back to DEAR.


Reset the Chart of Accounts

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To reset your Chart of Accounts to the default one that comes with your DEAR subscription, click the Use Default button.


Account Mapping

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Make sure your Chart of Accounts is correctly linked to your key business activities with Account Mapping.


NOTE: If you have optional accounts such as Inventory Accrual Transactions and Gift Cards, these will not be visible.


To perform Account Mapping:

  1. Navigate to Settings Reference Books Financial Account Mapping.
  2. Default accounts have been selected for some activities. Check that these are correct, changing them, if necessary. For those activities that don't have any accounts yet, select the correct accounts from the lists.
  3. Click Save.

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