Introduction
A chart of Accounts (COA) is a listing of the
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Ledger codes that a State or ULB’s has identified and made available for recording transactions in its general ledger. COA is a standard data which need to be setup as per the National Municipal Accounting Manual or Respective State wise manual. Click here for NMAM manual.
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The Code of an Account head shall be numeric and shall be 7 digits. A 7 digit code is suggested to give flexibility to add new codes and for each State or ULB to define certain of its unique requirements. The code is structured into:
Major Head Code : The first 3 digit of the GL code
Minor Head Code: The first 5 digits of the GL code
Detailed Head Code: The 7 digits of the GL code
Data Table
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*GL Code
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*Name
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Description
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Parent GL Code
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*Type
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*Classification
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*Major Code
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Subledger Type if control code
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1100101
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Properties- General Tax
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11001
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Income
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Detailed code
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110
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4102001
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Council Hall
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41020
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Assets
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Detailed code
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410
Procedure
Data Definition
GL Code: The Detailed Head code consist of 7 digits numeric (This is of three levels; The First level of 3
digits represent the Major Head, the next 2 digits represents the Minor Head and the last 2 digits represent the Detailed Head).Name: The Account Head “Name” of the Ledger Code
Description: A short description for the “Name” of the GL Code
Parent GL Code: If the GL code is the child of the other GL code then the parent GL code to be updated. (The Minor Head Code of 5 digits representing the second level of the code structure)
Type: To specify the GL Code if it is for Income, Expenses, Assets or Liabilities
Classification: To indicate whether it is Major, Minor or Detailed Code
Major Code: The First 3 digit of the code representing the first level of code structure
Subledger Type if Control Code: The subledger type associated with GL code (if it is Contractor Payable code, then value should be as "Contractor")
Steps to fill data
Identify the GL Codes that exists at a ULB level.
Collect the above information and feed it below the “COA” sheet accordingly.
The description should be short and precise for the Name of the GL code.
The format of the GL Code to be 7 digits numeric
The respective mapping with the GL code with the Major code should be as per code structure
The Type should be clearly specified against the individual GL code.
Subledger Type if Control Code should be associated with control code or non control code
if it is Contractor Payable code, mention the value here as "Contractor"
Validations
All the fields with * sign are mandatory to be filled in. Without this information, the system configurations cannot be executed.
The GL Code should be numeric and unique no repetitive code should be entered.
Attachments
Refer to “Chart of Account” in the uploaded template.
For sample data reference, refer to the uploaded “sample date” file.
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The COA definition can consist of 3 or 4 levels of hierarchy. Ex: Major->Minor->Detailed (3 levels) or Major->Minor->Sub Minor->Detailed (4 Levels). It is upto the state to define the levels required depending on the reporting needs. Detailed code is the node or the level at which the transaction is done.
Data Table
Sr. No* | Major Code* | Major head Description* | Minor Code* | Minor Head Description* | SubMinor Code | SubMinor Head Description | Detailed Heads (Ledgers)* | Ledger Code* | Type | Account Detail Type | Function Required | Budget Required |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | 110 | Tax Revenue | 110-01 | Property Tax | 110-01-01 | Property Tax - General Tax | Property Tax - General Tax - Residential | 110-01-01-01 | Income | Yes/No | Yes/No | |
2 | 210 | Establishment Expenses | 210-10 | Salaries and Wages | Basic Pay | 210-10-01 | Expenses | Yes/No | Yes/No | |||
3 | 350 | Other Liabilities | 350-11 | Employee Liabilities | Salaries Unpaid | 350-11-01 | Liabilities | Drawing Officer | Yes/No | Yes/No | ||
4 | 410 | Fixed Assets | 410-20 | Buildings | Office Building | 410-20-02 | Assets | Yes/No | Yes/No |
Note: Data given in the table is a sample data. It consists of sub minor level too.
Procedure
Data Definition
Sr No | Column Name | Data Type | Data Size | Is Mandatory? | Definition/ Description |
|---|---|---|---|---|---|
1 | Major Code | Alphanumeric | 50 | Yes | The Major Code can be any number of digits, (though NMAM suggest the first 3 digits) of the GL Code to be the Major code, this will help in collating the reports at the Nation level. |
2 | Major head Description |
| 250 | Yes | The short name given to the Major code to easily identify the Account Name for individual code. |
3 | Minor Code | Alphanumeric | 50 | Yes | The Minor Code can be any number of digits, the digits are configurable. The Minor code will help in collating the reports at the State level. Also State has the flexibility to define the minor codes. |
4 | Minor Head Description |
| 250 | Yes | The short name given to the Minor code to easily identify the Account Name for individual code. |
5 | SubMinor Code | Alphanumeric | 50 | No | The SubMinor Code can be optional, State/ULB can setup a subminor level code based on their requirement, this would help in facilitating the additional level of reporting and also detail transaction level information. (The SubMinor code is not listed in NMAM manual) |
6 | SubMinor Head Description |
| 250 | No | The short name given to the SubMinor code to easily identify the Account Name for individual code. |
7 | Detailed Heads (Ledgers) | Text | 250 | Yes | The short name for the Ledger Code, wherein users use this account head name while posting the transactions into the system. |
8 | Ledger Code | Alphanumeric | 50 | Yes | A General Ledger Code (GL Code) is a string of 7 to 9 digit numeric characters assigned to each financial entry in an State/ULB ledger. A GL Code can be assigned to different debit or credit entries to make accounting transactions. |
9 | Type | Text | 250 | No | The Type indicates the Income, Expenses, Liabilities and Assets which are mapped to each individual GL code. User can easily identify the GL code by this mapping. |
10 | Account Detail Type | Text | 250 | No | The account details type is the subsidiary ledger, The Suppliers, Contractors and Employees are standard subsidiary ledger. This will help the user to identify the subsidiary ledger details while processing any bill transaction in the system. |
11 | Function Required | Text | 250 | No | A GL Code can be linked for the validation of the Function, user while posting a transaction can select a particular function to which transaction will be linked and this will facilitate easy Function wise reporting. |
12 | Budget Required | Text | 250 | No | A GL Code can be linked for the validation of a Budget. User can have a validation check while posting a transaction into the system, this will facilitate to track the amount usage. |
Steps to fill data
Download the data template attached to this page.
Have it open and go through all the headers and understand the meaning of them by referring 'Data Definition' section.
Make sure all the headers, its data type, field size and its definition/ description is understood properly. In case of any doubt, please reach out to the person who has shared this document with you to discuss the same and clear out the doubts.
Start filling the data starting from serial no. and complete a record at once. repeat this exercise till the entire data is filled into a template.
Verify the data once again by going through the checklist and taking care of each and every point mentioned in the checklist.
Checklist
The checklist is a set of activities to be performed once the data is filled into a template to ensure data type, size, and format of data is as per the expectation. These activities have been divided into 2 groups as given below.
Common Checklist
This checklist covers all the activities which are common across the entities.
Sr. No | Checklist Parameter | Example |
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1 | Make sure that each and every point in this reference list has been taken care of. |
Entity Specific Checklist
This checklist covers the activities which are specific to the entity.
Sr. No. | Checklist Parameter | Example |
|---|---|---|
1 | The Major, Minor and Sub minor Description Name should not contain any special characters | Tax Revenue : [Allowed] #Tax Revenue! : [Not allowed] |
2 | The Ledger Codes that are defined by the state team should be alphanumeric and Unique. | 110-01-01-01 |