انتقل إلى المحتوى الرئيسي

Financial Settings

The Financial Settings module in the Centric System centralizes and streamlines the configuration of financial structures, defaults, categories, and compliance requirements. By configuring these subsections, organizations ensure accurate bookkeeping, tax compliance, and efficient integration across Sales, Purchase, Inventory, POS, and Accounting modules.

Purpose​

Financial Settings allow organizations to:

  • Define the company’s Chart of Accounts (COA).
  • Configure default financial parameters.
  • Establish double entry mappings for transactions.
  • Manage fiscal year formats and preferences.
  • Categorize transactions, expenses, and assets.
  • Standardize currency and tax handling.

Subsections of Financial Settings​

1. COA Types​

The Chart of Accounts (COA) represents the backbone of a company’s accounting system. It organizes all financial accounts into categories, enabling accurate tracking and reporting of transactions.

  • Assets: Economic resources owned by the business that bring future benefits. Examples: Cash, Accounts Receivable, Inventory, Buildings.
  • Liabilities: Obligations the company owes to creditors or suppliers. Examples: Accounts Payable, Bank Loans, Accrued Expenses.
  • Equity: Owner’s residual interest in the company after liabilities are deducted from assets. Examples: Share Capital, Retained Earnings.
  • Income: Revenue streams generated by the business. Examples: Product Sales, Service Revenue, Interest Income.
  • Expenses: Outflows of resources to operate the business. Examples: Rent, Salaries, Utilities, Raw Material Costs.

Actions:

  • Add new COA types by providing COA Type Name and linking to a Main Account.
  • Edit or delete existing COA entries.
  • Save updates to apply system-wide.

Benefit: Establishes a structured financial framework, ensuring compliance with international standards and enabling consistent reporting.

2. Default​

Default settings streamline daily operations by pre-assigning common financial parameters. These values automatically populate during transaction entry unless changed manually.

  • Default Payment Account: Specifies the bank or cash account most often used for payments.
  • Default Currency: Sets the base currency (e.g., Saudi Riyal) for consistency across modules.
  • Default Tax: Pre-applies a standard tax rate (e.g., VAT 15%) to all sales and purchases.
  • Default Payment Method: Defines how transactions are paid (Bank Transfer, Cash, Credit Card).
  • Income Category & Expenses Category: Ensures transactions are posted under the correct COA categories.
  • Default Language: Determines the language used for financial documents and system-generated reports.

Benefit: Automates repetitive selections, reduces manual errors, and ensures compliance.

3. Double Entries​

Double entry bookkeeping ensures that every financial transaction impacts at least two accounts: one debit and one credit. This section defines how these mappings are configured in the system.

  • Accounts Receivable & Accounts Payable: Manage customer debts and supplier obligations.
  • Sales & Sales Discount: Record revenue and applied discounts on sales.
  • General Expenses & Purchase Discount: Track operational costs and supplier discounts.
  • Owners Contribution & Customer Accounts: Capture equity contributions and customer balances.
  • Bank and Cash Accounts: Handle liquidity movements.
  • VAT: Automatically record tax on sales and purchases.
  • Numbering Rules: Customize journal entry numbering with prefixes, digit length, and sequence numbers.

Benefit: Guarantees accurate accounting records, compliance with audit requirements, and transparent reporting.

4. Financial Year​

This section allows organizations to define their fiscal reporting cycle and standardize date handling across financial records.

  • Financial Year Start: Identifies the beginning date of the fiscal year.
  • Financial Year Denote: Determines whether the fiscal year is referenced by start year or end year.
  • Preferred Date Format & Separator: Controls how dates appear on financial records (e.g., DD/MM/YYYY with dash separator).
  • Percent Position (%): Defines where percentage symbols appear (before or after the number).
  • Discount Location: Sets whether discounts appear at the line item level or on totals.

Benefit: Aligns financial reporting with statutory obligations and internal reporting preferences.

5. Transaction Category​

Transaction categories classify financial activities into income or expense groups, allowing clearer reporting and analysis.

  • English & Arabic Names: Support bilingual documentation for compliance in multilingual regions.
  • Color Codes: Visual identifiers for quick recognition in reports and dashboards.
  • Type: Categorize as Income or Expense.
  • Parent Category: Allows grouping under a larger classification (e.g., Travel Expense under Operating Expenses).
  • Has Batches: Enables grouping of transactions when processed in bulk.

Benefit: Simplifies expense monitoring and income analysis, enabling precise budget control.

6. Expenses​

This section manages the numbering structure for expense records, ensuring every entry is uniquely identified.

  • Number Prefix: A label (e.g., RR-) added to the start of each expense ID.
  • Number of Digits: Defines the length of the numeric part of the ID.
  • Next Number: The sequence number that will be used for the next expense entry.

Benefit: Provides traceability, consistency, and easier tracking of expense records.

7. Asset Categories​

Asset categories group and classify the various assets owned by the company, whether tangible or intangible.

  • English & Arabic Names: Define bilingual asset categories.
  • Image Upload: Helps visually identify the category (e.g., Vehicles, Computers).
  • Color Codes: For visual classification in reports.
  • Parent Category: Allows nesting of categories (e.g., IT Equipment → Laptops).
  • Has Batches: Tracks groups of assets purchased together or managed in lots.

Benefit: Facilitates proper classification for depreciation schedules, audit compliance, and operational efficiency.

8 Currencies​

This section allows the configuration of multiple currencies, enabling businesses to operate globally.

  • English & Arabic Name: Defines the currency in multiple languages for clarity.
  • Code: Official currency code (e.g., USD, SAR, AED).
  • Rate: Exchange rate compared to the base currency.
  • Symbol: Visual representation of the currency (e.g., $, ﷼).
  • Precision: Determines the number of decimal places used.
  • Symbol Position & Decimal Mark: Configures how amounts are displayed (e.g., $100.00 vs 100,00$).
  • Thousands Separator: Defines formatting for large numbers (e.g., 1,000 vs 1.000).
  • Default Currency Toggle: Sets the base currency for all company transactions.

Benefit: Facilitates international operations, accurate currency conversions, and compliance with global financial practices.

9 Taxes​

Manages tax structures applicable to the company’s transactions.

  • Tax Name & Code: Identifies the tax type (e.g., VAT, GST).
  • Rate: Percentage applied to transactions (e.g., 15%).
  • Tax Type: Defines whether it applies to sales, purchases, or both.
  • Description: Explains the purpose or regulation linked to the tax.
  • Exemptions or Special Rules: Can be configured for special cases.

Benefit: Ensures legal compliance with tax authorities, automates tax application on transactions, and reduces manual calculation errors.

This comprehensive Financial Settings ensures businesses can operate efficiently, maintain compliance, and generate accurate financial insights across all operations.