Introduction

Chart of Accounts (COA) defines the heads under which the income and expenditure of local bodies are classified and facilitates maintenance of accounts and preparation of financial statements. COA is a standard data which need to be setup are as per the National Municipal Accounting Manual or Respective State wise manual.

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 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

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” for the 7 digit GL Code

• Description: A short description for the “Name” of the GL Code

• Parent GL Code: 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

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.

Validations

• All the fields with * sign are mandatory to be filled in. Without this information, the system configurations cannot be executed.

• A “single entry” should be made against the respective column. Incase of multiple entries, continuation must be followed.

Attachments

• Refer to “Chart of Account” in the uploaded template.

• For sample data reference, refer to the uploaded “sample date” file.