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COA Types

The COA Types feature under Financial Settings in the Centric System defines the structure of a company’s Chart of Accounts (COA). It categorizes all accounts used for financial transactions, ensuring accurate bookkeeping, reporting, and compliance with accounting standards.

Purpose​

The COA Types setup allows organizations to:

  • Classify financial accounts into structured categories.
  • Maintain transparency and consistency in financial reporting.
  • Support multiple accounting standards and business models.
  • Simplify integration with modules like Inventory, Sales, Purchase, and Accounting.

Key Categories in COA Types​

1. Assets​

Represents resources owned by the business that have future economic value.

  • Current Asset: Short-term assets like cash, accounts receivable, and inventory.
  • Fixed Asset: Long-term assets such as land, buildings, and machinery.
  • Inventory: Goods available for sale or production.

2. Liabilities​

Obligations the business owes to external parties.

  • Current Liability: Short-term obligations due within a year (e.g., accounts payable).
  • Non-current Liability: Long-term obligations such as bank loans.
  • General Liability: Other obligations not covered above.

3. Equity​

Represents ownership interest in the company.

  • Equity: Capital invested by owners, retained earnings, and reserves.

4. Income​

Captures the revenue streams of the business.

  • Revenue: Income from core operations.
  • Sales: Income from product or service sales.
  • Other Income: Additional earnings such as interest, dividends, or asset sales.

5. Expenses​

Represents the outflows or costs incurred by the company.

  • Direct Costs: Expenses tied directly to production or sales (e.g., raw materials, labor).
  • General Expense: Overhead and operational costs (e.g., rent, utilities).

Actions​

  • Add: Opens a form to create a new COA type. Users must provide:

    • COA Type Name: The name of the new category (e.g., Marketing Expense, Investment Income).

    • Main Account: The primary account under which the COA type will fall (e.g., Expense, Income, Asset).

    • Once details are entered, clicking Save adds the new COA type to the financial structure.

  • Edit/Delete: Modify or remove existing COA accounts as needed.

  • Save: Stores all updates and ensures alignment across financial modules.

This feature ensures that all financial data recorded in the Centric System is categorized under a well-structured Chart of Accounts, enabling clarity, transparency, and efficient reporting.