Setup the Accounts table

In the following we will explain what need to be considered when creating a new accounting tabble for a specific country.

  • Creating the account structure and grouping specific country.
  • Creating the country specific reports or export files, using the functionalities offered by the Banana API .

Documentation

Examples files

Using an existing accounting system

Usually countries have accounting system that include:

  • Accounts numbering
  • Accounts description
  • Accounts grouping and totalisation

The country or sector specific accounting system is usually focused on helping prepare the Balance Sheet and Income & Exanses report.

Based on this accounting system it is also necessary to generate report that summirize the accounts for specific tax purposes, in case that the tax autorities require a report that is different from the Balance structure.

Accounts table

In Banana accounts and grouping are specified in the accounts table.

Banana allow to adapt to different county or sector specific requirement, but at the first moment the Banana grouping system look confusing, for the fact that there are different  columns that contains similar information.

Accounts, groups and sections

There are three different type of line in the account table.

  • Account.
    Lines that have an account number in the column account.
    Accounts can be normal account, cost center or segmente
  • Group
    Lines that have a group number in the column group.
  • Section
    Line the have a section number in the column section.

A line in the account table can is either an Account, Group or Section. It cannot be both, so if there are on the same line an account, group or section there is an error.

In the above example there are lines for Section, group and accounts.

Here is the meaning

  • Accounts.
    Are used for recording transactions.
  • Group
    Are used to create sums.
  • Sections
    Are used to separate different part of the report.

Summing and creating totals

 In Banana you can create sum by using the combination of:

  • Groups columns.
    You enter the group number and the line become a group.
  • Gr
    I where you enter the group on where this line should be totalized.
    Accounts and Groups can have a Gr.

In the example above.

  • The accounts 1000 and 1020 is totilized on the group 100.
  • The group 100 is totilized on the group 10.
  • The group 10 is totilized on the group 1
  • The group 1 is totlized on the group 00.

By creating the group line and specifingin in the Gr whe the each line is grouped you create a wole totalisation.

Total debit = Total credit

Computer represent debit amount in positive and credit amounts in negative therefore we should totalize all accounts and groups in a final group that, if the accounting is correct, should have the amount to zero.
At the end of the grouping we will have a group named "Difference should be zero (null)" that in the above accountng example has the number 00.
Basically in the double entry accountiong system the totalisations is done in this way.

  • Group Income and expenses (example group  E7)
    Is the sum of all Revenue and Costs accounts.
    The Profit or Loss of the year that is further totalized in the Equity as the current year result.
  • Group Assets (example group 2)
    Include all Assets accounts
    Asset are totalized on the group Difference should zero.
  • Liabilities and Equity  (example group 2).
    Is the sum of all the Liabilities and Equity accouns, plus the Profit and loss of the current year from the total group of income and expenses.
    Liabilities and Equity on the group Difference should zero.
  • Difference should be = 0 (example group 00)
    Is the end sum of all accounts and the Balance should be null if the accounting is correnct.

 

The BClass column

In Banana each column has a (Banana class number) that indicate if the account belong to:

  • 1 Total Assets
  • 2 Total Liabilities
  • 3 Total Expenses
  • 4 Total Revenue
  • 5 Total off balance sheet: Assets
  • 6 Total off balance sheet: Liabilities
  • 7 Total class 7
  • 8 Total class 8
  • 9 Total class 9

The BClass is somewhat a redundant information, but unfortunalty is also necessary in order to let Banana if the accounting is correct.

The BClass is also some time confusing for the fact that the country specific accounting system have normally class number that are not the same as the BClass in banana.

The Section column

Is also sometime redundant information, but unfortunatly is necessary in order to have the possibility to customize Balance sheet and other repors.

Grouping for the Balance

  • Assets
    You need to create a Total Assets group and intermediary groups (like fixed assets) so that up grouping  the accounts specific to the Assets. 
  • Liabilities (Third party capital and Equity)
    Has subgroups for 
    • Third party capital (Liabilities in anglo saxan terminology)
    • Equity

Grouping for Income statemant

It groups all the accounts belonging to the Income statement. At the end there should be a group "Loss (+)  por Profit (-).

There are two fundamentally different system to present the Income statement. One that sum separately the Revenue and the Costs and another one (scalar system) where the the Profit and Loss is calculated by starting from the revenues and obtainings intermediary results. 

Revenue and Cost separated

There are two groups that are summed in the Loss and Profit

  • Total Revenue
  • Total Income

Scalar system

  • (E1) Gross operating
    Sum of all accounts for Revenue and Productions cost
  • (E2) Gross operating result after deducting personnel expenses
    Sum of Gross operating group (E1) and the accounts Personel costs.
  • (E3) Operating result before depreciation and value adjustments, financial results and taxes (EBITDA)
    Sum of  E2 and the operating cost

  • (E4) Operating result before financial results and taxes (EBIT)
    Sum of E3 and the depreciation

  • (E5) Operating result before taxes (EBT)
    Sum of E4 and Financial costs

  • (E6) Profit or loss before taxes
    Sum of E6 and extraordinary costs

  • (E7) Annual profit or loss
    Sum of E6 and the tax

  • In this form it is necessary to create intermediary groups for.

 

 

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