Charts of Accounts and Other Financial Settings

A quick and successful integration between Cin7 Core and other accounting software depends largely on the quality of the initial setup. One of the critical elements of the initial setup is the Chart Of Accounts. Cin7 Core generates accounting transactions in the background and, at a later stage, these transactions are exported to your chosen accounting software. All settings must be set up before any initial data load occurs (supplier, customer, products, stock on hand, buys, sells, and so on).

Cin7 Core allows changing accounts and tax rules from default for each transaction. This allows users to design an effective Chart of Accounts in order to carry out successful analysis and managerial decisions.

Note: The order of priority for account settings in financial transactions is:

Order line (highest priority, will override all other assigned accounts/tax rules)
Product
Sale/Purchase order document header
Supplier/Customer.

Prerequisites

None, this is one of the first steps in Cin7 Core. We recommend reading the Getting Started Guide for more information.
Familiarity with Tax Rules.
Familiarity with Accounts and Chart of Accounts.

Required Accounts

Cin7 Core requires the following accounts (with the account settings listed below) to be available to function correctly.

If you are using Cin7 Core standalone, you can create accounts in Cin7 Core by going to Settings → Reference Books → Financial → Chart of Accounts.
If you are using Xero/QuickBooks Online, you must create accounts in Xero/QuickBooks Online. They will then be imported into Cin7 Core 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 QuickBooks Online 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 Cin7 Core:

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

Required accounts:

Account	Account Type	System Account	Accepts Payments
Inventory Control	Current Asset	None	Doesn't accept payments
Inventory Discrepancy	Expense	None	Doesn't accept payments
Cost of Goods Sold	Direct Cost (Cin7 Core standalone/Xero) Cost of Sales - Supplies and Materials (QuickBooks)	None	Doesn't accept payments
Default Revenue	Revenue	None	Doesn't accept payments
Tax Liability	Liability	None	Doesn't accept payments
Work in Progress	Current Asset	None	Doesn't accept payments
Supplier Deposits	Current Asset	None	Accepts payments
Customer Credits	Current Liability	None	Accepts payments
In Transit	Current Asset	None	Doesn't accept payments

Optional Accounts:

Account	Account Type	System Account	Accepts Payments
Inventory Accrual (Goods Received, Not Invoiced)	Current Asset OR Current Liability	None	Doesn't accept payments
Stock in Transit (Goods Invoiced, Not Received)	Current Asset	None	Doesn't accept payments
Realized Currency Gains	Expense	None	Doesn't accept payment
Unrealized Currency Gains	Expense	None	Doesn't accept payment
Payment Clearing	Bank	None	Doesn't accept payment
Current Year Profits	Equity	None	Doesn't accept payment

Inventory Accrual/Stock in Transit requires Inventory Accrual to be enabled. Realized Currency Gains and Payment Clearing are required for consolidation of QuickBooks Online transactions. Realized Currency Gains is required for multiple currencies, too.

Account	Account Type	System Account	Accepts Payments
Gift Card Liability	Current Liability	None	Accepts payments

Gift Card Liability requires Gift Cards to be enabled.

See Accounts and Chart of Accounts for more information about creating accounts in Cin7 Core.

Account Mapping

Make sure your accounts in Cin7 Core and in your accounting system are correctly linked with Account Mapping.

You can use Cin7 Core without completing this account mapping. If you attempt to use functions that are linked to an unmapped account, Cin7 Core will report an error and may be unable to complete the operation.

If you have optional accounts such as Inventory Accrual Transactions and Gift Cards, these will not be visible unless they are enabled in General Settings.

Account mappings are one-to-one. Each Cin7 Core account must be mapped to a unique Xero/QuickBooks account.

To perform Account Mapping:

Navigate to Settings → Reference Books → Financials → Account Mapping.
Check all accounts are correctly linked together.
Save any changes.

Product-level Customization

Cin7 Core allows you to specify inventory control, revenue and COGS accounts at the product level. This allows revenue analysis to occur at the product level if your business needs require it. Create additional accounts either through Settings → Reference Books → Financials → Chart of Accounts in Cin7 Core or through your accounting system and assign them on the details screen.

Tax Rules can also be specified at the product level. Go to Inventory → Products → [select product], and choose the General tab.

Supplier-level and Customer-level Customization

Further customization can be done at the Customer and Supplier level.

The Supplier screen allows you to change the default Accounts Payable account, Tax Rule, and Payment Term that will be applied when you process an invoice from the given supplier.

If you set the Supplier currency different to your base currency, Cin7 Core will automatically apply a currency conversion rate effective at the time when the document is created. This field can be manually overridden to enter the actual rate of conversion.

The Customer screen allows you to change the Accounts Receivable account and default Sale/Revenue account. This will allow you to implement ‘customer-centric’ revenue analysis.

You are also able to change the Tax Rule and Payment Term that will be applied when creating Invoices for a given customer. If you set the Customer currency that is different from your base currency, Cin7 Core will automatically apply a currency conversion rate effective at the time the document is created. This field can be manually overridden to enter the actual rate of conversion.

Purchase/Sale Invoice-level Customization

All defaults can be overwritten again at the document level at the time of creating a new purchase or sale invoice.

The Sale screen allows you to modify the Sale account and Tax Rule. You are also able to adjust the Tax Rule at the invoice line level if required. Additional costs can be allocated to a different sale account, and different tax treatment can be applied as well. When selling to other countries, Cin7 Core will pre-fill the conversion rate field with the most recent rate. This can also be manually amended to reflect the actual rate.

The Purchase screen allows you to modify the Inventory Account, where the stock should be allocated. You are also able to adjust the Inventory Account at the invoice line level if required. Tax Rules can also be changed at the order and/or order line level.

Additional costs can be allocated to the same Inventory Account to form the landing cost of your stock; alternatively, it can be any other expense account if those expenses are classified differently by your business.

You can specify different Tax rules for additional costs as well. When selling to other countries, Cin7 Core will pre-fill the conversion rate field with the most recent rate, which can be manually amended.

Chart of Account permisssions

Cin7 Core offers fine-grained control over user permissions. Grant users full or read-only permission to the different features of the purchases module, and create roles with pre-defined permissions to assign to users.

Go to Settings → Users and Roles to change user permissions, see Introduction to users and Manage roles and User permissions explained for more information.

Users will need full access for the Setting - Financial - Charts of Accounts & Mapping permission to make changes to the Chart of Accounts and Account Mapping.

Users will need the Inventory - Products & Families permission to customize revenue accounts for a product.

Users will need the Suppliers List & Editing and Customers List & Editing permission to customize revenue accounts for a supplier or customer.

Users will need Purchase - List & Tasks permission and Sale - List & Tasks permission to customize revenue accounts for a purchase or sale.

Charts of Accounts and Other Financial Settings

Charts of Accounts and Other Financial Settings

Prerequisites

Required Accounts

Account Mapping

Product-level Customization

Supplier-level and Customer-level Customization

Purchase/Sale Invoice-level Customization

Chart of Account permisssions

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