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Chart of Accounts

In this article, using CoA you will learn how to set up CRM accounts, link, and apply its tax modes for Inventory modules for easier and automated tax management!
S
Shreya Kulkarni
23 Mar, 2022 - Updated 3 months ago
Table of Contents

Introduction

What is the Chart of Accounts?
Chart of Accounts (CoA) is a methodical and systematic documentation of financial accounting transactions such as sales, purchases, assets, income, etc for an organization. It helps you gain clarity on every organizational transaction providing accurate finance and tax split-ups. It facilitates easier tax administration and analysis reducing the complications and hassle for multitudinous transactions.

What is the CoA in Vtiger CRM?

Chart of Accounts (CoA) is an accounting add-on in Vtiger CRM. It helps you group and track your financial transactions into different categories for easy accounting and tax management. It is available as an Inventory feature under Inventory Settings. 
With the CoA addon, you can set up different types of CRM accounts. It also enhances your tax management process bringing about additional tax modes.
It helps you link and apply its tax modes for Inventory modules facilitating easier and automated tax updation. It links and syncs your Organization’s, Vendor’s, Contact’s and Product’s Sales and Purchase account taxes with Inventory modules. 

Currently, the CoA syncs with MYOB accounting only. The sync is one-way, and you can import data from MYOB into your CRM. 

The CoA fields in the following modules automatically sync with related fields in MYOB:  

  • Organization
  • Vendor
  • Contact
  • Product
  • Sales 
  • Purchase

With the CoA, you can:

  • Configure multiple types of CRM accounts.
  • Use the three additional tax modes that have been added to the Default Tax modes.
  • Automatically sync Inventory modules with the Sales and Purchase account’s taxes of related Organizations, Vendors, Contacts and Products.
  • Use the Sales and Purchase account fields that have been added .

Benefits of Chart of Accounts

  • Syncs data from MYOB to Vtiger CRM
  • Offers user-friendly automatic data categorizing and processing
  • Saves manual effort
  • Requires low implementation efforts

In this article you will learn about:

  • Installing CoA
  • The CoA feature in Vtiger CRM
    • For Inventory Settings 
    • For Inventory modules
    • For Tax Management
  • The CoA tax modes for sales transaction modules
    • Org account taxes
    • Contact account taxes
    • Item account taxes
  • The CoA tax modes for purchase transaction modules
    • Vendor account taxes
    • Contact account taxes
    • Item account taxes

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  Chart of Accounts

Key Terminology 

CoA

CoA is an accounting add-on that allows grouping of CRM’s financial transactions into specific categories for easier tax management and audits.

Inventory module

The Inventory module helps you manage your product or service inventory and related transactions like sales orders, purchase orders, payments, etc.

Item

Item refers to a product in the Products module.

Purchase Account

Purchase account is a CRM account with Account Type, Purchases and is used for purchase transactions.

Purchase transaction modules

Purchase transaction modules are modules which involve purchase transactions.

Sales Account

Sales account is a CRM account with Account Type, Sales and is used for sales transactions.

Sales transaction modules

Sales transaction modules are modules which involve sales transactions.

Tax Modes

Tax Modes are ways that define the pattern by which taxes are applied to line items.

Tax Types

Tax Types are the different kinds of taxes that you have set up for your CRM accounts.

Vendor

Vendor refers to a person or a company with whom you purchase products or services.

Installing the CoA Extension

To use CoA accounting with Vtiger CRM, Admin users need to first install the Chart Of Accounts extension. 

Follow these steps to install the Chart Of Accounts extension: 

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Add-ons on the bottom left corner of the screen.

Or

  1. Click Settings.
  2. Look for Extensions.
  3. Click Extension Store.
  4. Look for the Chart Of Accounts extension.
  5. Click Install.
  6. Click Yes to confirm the installation.

Once you have installed it successfully, CoA will be visible under Settings > Inventory.

Chart of Accounts in Vtiger CRM

CoA allows you to add CRM accounts for the following types:

  1. Sales
  2. Purchases
  3. Assets
  4. Liabilities
  5. Income
  6. Expenses
  1. Assets - Records purchase transactions for your business assets such as equipments, vehicles, buildings, etc.
  2. Liabilities - Records your uncleared business debts such as loans, mortgages, lines of credit, etc.
  3. Income - Records sales transactions and payments you earn from your day-to-day businesses such as income from rendered sales or services etc.
  4. Expenses - Records purchase transactions for your business expenses such as operations, advertising, promotion, office - supplies, rent, etc.
  5. Sales - Records all types of sales transactions for your business.
  6. Purchases - Records all types of purchase transactions for your business.

Follow these steps to add an account to the CoA:

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts. You will be directed to the Chart Of Accounts page.
  6. Click + Add Account button. You will be directed to the Add New Account window.
  7. Enter or select the below information:
  1. Account Name - Enter a name for the account.
  2. Account Code -  Enter a code for the account.
  3. Account Type - Select an account type
  4. Select Tax - Select tax types
  1. Click Save.

You have now successfully added an account to the CoA.

Note:

  • You can edit and delete an account by clicking the Edit and Delete icon that appears by hovering your mouse over an account.
  • You can delete an account only if it is not used in any sales or purchase transactions in CRM.

Chart of Accounts for CRM Modules

With the CoA the following fields have been added to CRM modules:

  1. Sales Account and Purchase Account
  2. Sales Account
  3. Purchase Account
1. Sales Account and Purchase Account



The Sales Account and Purchase Account fields have been added under the Details and Basic Information sections in the Detailed View of the following module records:

  1. Contacts
  2. Organizations
  3. Products
  4. Services
  5. Vendors
2. Sales Account



The Sales Account field has been added under the Item Details section in the Detailed View of the following sales transaction module records:

  1. Credit Notes
  2. Invoices
  3. Quotes
  4. Sales Orders
  5. Subscription
  6. Work Orders
3. Purchase Account



The Purchase Account field has been added under the Item Details section in the Detailed View of the following purchase transaction module records:

  1. Purchase Order
  2. Bills

Chart of Accounts in CRM Tax Management

With the CoA the following tax modes are added to Default Tax Modes in Tax Management:

  1. Org account taxes
  2. Contact account taxes
  3. Item account taxes

Note: 

With the CoA, 

  • The above default tax modes are added along with the already existing Group and Individual default tax modes.
  • The default tax mode Individual is renamed as Individual (Item taxes)

1. Org account taxes:
  1. Org account taxes for sales transaction modules:

Org account taxes:

Syncs taxes from the Sales account of an Organization linked with sales transaction module records.

  1. Org account taxes for purchase transaction modules:

Vendor account taxes:

Syncs taxes from the Purchase account of a Vendor linked with purchase transaction module records.

Note: For purchase transaction modules, Org account taxes is renamed as Vendor account taxes as they involve transactions with vendors.

2. Contact account taxes:
Syncs taxes from the Sales and Purchase accounts of a Contact linked with sales and purchase transaction module records.
 
3. Item account taxes:
Syncs taxes from the Sales and Purchase accounts of an Item linked with sales and purchase transaction module records.

Learning Chart of Accounts Tax Modes for CRM Modules 

With the CoA, the default tax modes:

  • Org account taxes
  • Contact account taxes
  • Item account taxes

Are added as Tax Modes for the following sales transaction modules:  

  1. Credit Notes
  2. Invoices
  3. Quotes
  4. Sales Orders
  5. Subscription
  6. Work Orders

With the CoA, the default tax modes:

  • Vendor account taxes
  • Contact account taxes
  • Item account taxes

Are added as Tax Modes for the following purchase transaction modules:  

  1. Purchase Orders
  2. Bills 

Note: 

The above Tax Modes for sales and purchase transaction modules are added along with the already existing Group and Individual (Item taxes) Tax Modes.

 

Let us now look into each of the CoA tax modes for sales and purchase transaction modules.

CoA Tax Modes for sales transaction modules

For the sales transaction modules, the CoA tax modes, Org account taxes, Contact account taxes, and Item account taxes auto-update the taxes of an Organization’s, Contact’s, and Item’s Sales account respectively.

Note: For instance, we have considered the Invoices module, you can go to any sales transaction module.

Org account taxes

Org account taxes lets you link an Organization’s Sales account with an Invoice. It auto-updates the taxes chosen for an Organization’s Sales account while preparing an Invoice for an Item. 

Follow these steps to access Org account taxes:

  • Step 1: Setting up a Sales account
  • Step 2: Linking a Sales account to an Organization
  • Step 3: Automated tax updation with Org account taxes

Step 1: Setting up a Sales account

Follow these steps to add a Sales account:

Note: For instance we have considered the Sales account Trade with tax types CGST and GST.

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts.
  6. You will be directed to the Chart Of Accounts page.
  7. Click + Add Account button.
  8. You will be directed to the Add New Account window.
  9. Add or select the below information:
  1. Account Name - Trade
  2. Account Code - 101
  3. Account Type - Sales
  4. Select Tax - CGST, GST
  1. Click Save.

You have now successfully added Trade with tax types CGST and GST.

Step 2: Linking a Sales account to an Organization

Follow these steps to link a Sales account to an Organization:

Note: For instance we are linking the Sales account Trade for the Organization Delta.

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Look for Lead & Contact Management.
  4. Select Organizations
  5. Select Delta.
  6. Under Organization Details in the Sales Account field, select Trade.

You have now successfully linked Trade as Delta’s Sales account.

Step 3: Automated tax updation with Org account taxes

Follow these steps for automated tax updation with Org account taxes:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Order Fulfillment.
  5. Select Invoices
  6. Select Lead.
  7. Under Invoice Details in the Organization Name field, select Delta.

  1. Under Item Details:
  1. Select an Item.
  2. Select the Tax Mode Org account taxes.
  3. Under Tax, CGST and GST taxes derived from Delta's Sales account Trade are auto filled.

With CoA, Org account taxes has now successfully auto filled Delta’s Sales account Trade’s taxes for Lead.

Contact account taxes

Contact account taxes lets you link a Contact’s Sales account with an Invoice. It auto-updates the taxes chosen for a Contact’s Sales account while preparing an Invoice for an Item. 

Follow these steps to access Contact account taxes:

  • Step 1: Setting up a Sales account
  • Step 2: Linking a Sales account to a Contact
  • Step 3: Automated tax updation with Contact account taxes

Step 1: Setting up a Sales account

Follow these steps to add to a Sales account:

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts.
  6. You will be directed to the Chart Of Accounts page.
  7. Click + Add Account button.
  8. You will be directed to the Add New Account window.
  9. Add or select the below information:
  1. Account Name 
  2. Account Code 
  3. Account Type
  4. Select Tax 
  1. Click Save.

You have now successfully added a Sales account.

Step 2 : Linking Sales account to a Contact

Follow these steps to link a Sales account to a Contact:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Essentials.
  4. Look for Lead & Contact Management.
  5. Select Contacts
  6. Select a Contact.
  7. Under Basic Information in the Sales Account field select a Sales account.

You have now successfully linked a Sales account to a Contact.

Step 3: Automated tax updation with Contact account taxes

Follow these steps for automated tax updation with Contact account taxes:

  1. Login to your CRM account.
  1. Click the User Menu.
  2. Click Inventory.
  3. Look for Order Fulfillment.
  4. Select Invoices
  5. Select an Invoice.
  6. Under Invoice Details in the Contact Name field select a Contact.
  7. Under Item Details:
  1. Select an Item.
  2. Select the Tax Mode Contact account taxes.
  3. Under Tax, taxes derived from the Contact’s Sales Account are auto filled.

With CoA, Contact account taxes has now successfully auto filled a Contact's Sales account taxes for an Invoice.

Item account taxes

Item account taxes lets you link an Item’s Sales account with an Invoice. It auto-updates the taxes chosen for an Item’s Sales account while preparing an Invoice for an Item. 

Follow these steps to access Item account taxes:

  • Step 1: Setting up a Sales account
  • Step 2: Linking a Sales account to an Item
  • Step 3: Automated tax updation with Item account taxes

Step 1: Setting up a Sales account and its taxes

Follow these steps to add a Sales account:

  1. Log into your CRM account.
  1. Click the User Menu.
  2. Click Settings.
  3. Look for Inventory.
  4. Click Chart of Accounts.
  5. You will be directed to the Chart Of Accounts page.
  6. Click + Add Account button.
  7. You will be directed to the Add New Account window.
  8. Add or select the below information:
  1. Account Name 
  2. Account Code 
  3. Account Type
  4. Select Tax 
  1. Click Save.

You have now successfully added a Sales account.

Step 2: Linking a Sales account to an Item

Follow these steps to link a Sales account to an Item:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Catalog.
  5. Select Products
  6. Select a Product.
  7. Under Product Details in the Sales Account field select a Sales account.

You have now successfully linked a Sales account to an Item.

Step 3: Automated tax updation with Item account taxes

Follow these steps for automated tax updation with Item account taxes:

  1. Login to your CRM account.
  1. Click the User Menu.
  2. Click Inventory.
  3. Look for Order Fulfillment.
  4. Select Invoices
  5. Select an Invoice.
  6. Under Item Details
  1. Select an Item.
  2. Select the Tax Mode Item account taxes.
  3. Under Tax, taxes derived from the Item’s Sales account are auto filled.

With the CoA, Item account taxes has now successfully auto filled an Item’s Sales account taxes for an Invoice.

With this, we understand that for sales transaction modules, with Tax Modes Org account taxes, Contact account taxes and Item account taxes selecting an Organization, Contact, and Item for an Invoice the Organization’s, Contact’s and Item’s Sales account’s taxes will by default be considered and displayed under Tax for the Invoice.

Note: 

For Sales transaction modules, with Tax Modes Org account taxes, Contact account taxes and Item account taxes deselecting an Organization, Contact and Item for an Invoice the following error message is displayed All line item taxes will be recomputed with the selected related Inventory account taxes.

CoA Tax Modes for purchase transaction modules

For the purchase transaction modules, the CoA tax modes, Vendor account taxes, Contact account taxes, and Item account taxes auto-update the taxes of a Vendor’s, Contact’s, and Item’s Purchase account respectively.

Note: For instance, we have considered the Purchase Orders module, you can also go to the Bills module.

Vendor account taxes

Vendor account taxes lets you link a Vendor’s Purchase account with a Purchase Order. It auto-updates the taxes chosen for a Vendor’s Purchase account while preparing a Purchase Order for an Item. 

Follow these steps to access Vendor account taxes:

  • Step 1: Setting up a Purchase account
  • Step 2: Linking a Purchase account to a Vendor
  • Step 3: Automated tax updation with Vendor account taxes

Step 1: Setting up a Purchase account

Follow these steps to add a Purchase account:

Note: For instance we have considered the Purchase account Retail with tax types SGST and INP.

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts.
  6. You will be directed to the Chart Of Accounts page.
  7. Click + Add Account button.
  8. You will be directed to the Add New Account window.
  9. Add or select the below information:
  1. Account Name - Retail
  2. Account Code - 102
  3. Account Type - Purchases
  4. Select Tax - SGST, INP
  1. Click Save.

You have now successfully added Retail with tax types SGST and INP.

Step 2: Linking a Purchase Account to a Vendor

Follow these steps to link a Purchase account to a Vendor:

Note: For instance we are linking the Purchase account Retail to the Vendor Global

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Order Fulfillment.
  5. Select Vendors
  6. Select Global.
  7. Under Vendor Details in the Purchase Account field, select Retail.

You have now successfully added Retail as Global’s Purchase account.

Step 3: Automated tax updation with Vendor account taxes

Follow these steps for automated tax updation with Vendor account taxes:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Order Fulfillment.
  5. Select Purchase Orders
  6. Select Deal.
  7. Under Purchase Order Details in the Vendor Name field, select Retail.

  1. Under Item Details:
  1. Select an Item.
  2. Select the Tax Mode Vendor account taxes.
  3. Under Tax, SGST and INP taxes derived from Global’s Purchase account Retail are auto filled.

With the CoA, Vendor account taxes has now successfully auto filled Global’s Purchase account Reatil’s taxes for Deal.

Contact account taxes

Contact account taxes lets you link a Contact’s Purchase account with a Purchase Order. It auto updates the taxes chosen for a Contact’s Purchase account while preparing a Purchase Order for an Item. 

Follow these steps to access Contact account taxes:

  • Step 1: Setting up a Purchase account
  • Step 2: Linking a Purchase account to a Contact
  • Step 3: Automated tax updation with Contact account taxes

Step 1: Setting up a Purchase account and its taxes

Follow these steps to add a Purchase account:

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts.
  6. You will be directed to the Chart Of Accounts page.
  7. Click + Add Account button.
  8. You will be directed to the Add New Account window.
  9. Add or select the below information:
  1. Account Name 
  2. Account Code 
  3. Account Type 
  4. Select Tax 
  1. Click Save.

You have now successfully added a Purchase account.

Step 2: Linking a Purchase account to a Contact

Follow these steps to link a Purchase account to a Contact:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Essentials.
  4. Look for Lead & Contact Management.
  5. Select Contacts
  6. Select a Contact.
  7. Under Basic Information in the Purchase Account field, select a Purchase account.

You have now successfully linked a Purchase account to a Contact

Step 3: Automated tax updation with Contact account taxes

Follow these steps for automated tax updation with Contact account taxes:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Order Fulfillment.
  5. Select Purchase Orders
  6. Select a Purchase Order.
  7. Under Purchase Order Details in the Vendor Name field, select a Contact.
  8. Under Item Details:
  1. Select an Item.
  2. Select the Tax Mode Contact account taxes.
  3. Under Tax, taxes for a Contact’s Purchase account are auto filled.

With the CoA, Contact account taxes has now successfully auto filled a Contact’s Purchase account taxes for a Purchase Order.

Item account taxes

Item account taxes lets you link a Product’s Purchase account with a Purchase Order. It auto updates the taxes chosen for an Item’s Purchase account while preparing a Purchase Order for an Item. 

Follow these steps to access Item account taxes:

  • Step 1: Setting up a Purchase account
  • Step 2: Linking a Purchase account to an Item
  • Step 3: Automated tax updation with Item account taxes

Step 1: Setting up a Purchase account and its taxes

Follow these steps to add a Purchase account:

  1. Log into your CRM account.
  2. Click the User Menu.
  3. Click Settings.
  4. Look for Inventory.
  5. Click Chart of Accounts.
  6. You will be directed to the Chart Of Accounts page.
  7. Click + Add Account button.
  8. You will be directed to the Add New Account window.
  9. Add or select the below information:
  1. Account Name 
  2. Account Code 
  3. Account Type 
  4. Select Tax 
  1. Click Save.

You have now successfully added a Purchase account.

Step 2: Linking a Purchase account to an Item

Follow these steps to link a Purchase account to an Item:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Catalog.
  5. Select Products
  6. Select a Product.
  7. Under Product Details in the Purchase Account field, select a Purchase account.

You have now successfully linked a Purchase account to an Item.

Step 3: Automated tax updation with Item account taxes

Follow these steps for automated tax updation with Item account taxes:

  1. Login to your CRM account.
  2. Click the User Menu.
  3. Click Inventory.
  4. Look for Order Fulfillment.
  5. Select Purchase Orders
  6. Select a Purchase Order.
  7. Under Item Details
  1. Select an Item.
  2. Select the Tax Mode Item account taxes.
  3. Under Tax, taxes for an Item’s Purchase account are auto filled.

With the CoA, Item account taxes has now successfully auto filled an Items Purchase account taxes for a Purchase Order.

With this, we understand that for purchase transaction modules, with Tax Modes Vendor account taxes, Contact account taxes and Item account taxes, selecting a Vendor, Contact and Item for a Purchase Order the Vendor’s, Contact’s and Item’s Purchase account’s taxes will by default be considered and displayed under Tax for the Purchase Order.

Note:

For Purchase transaction modules, with Tax Modes Vendor account taxes, Contact account taxes and Item account taxes, deselecting a Vendor, Contact and Item for a Purchase Order the following error message is displayed All line item taxes will be recomputed with the selected related Inventory account taxes.

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