Accounts guide

It is a set of main and subsidiary accounts in the general ledger and trial balance, which are used to record all financial transactions within the company.
Levels of classification of accounts in the chart of accounts in Afaky integrated accounting system ERP
The ERP system enables the definition of accounts at an unlimited number of levels, as the system provides an unlimited number of levels of the chart of accounts, and a sub-account can be defined at any level of the accounts tree, taking into account the balance of the trial balance at all levels of accounts.

The accounts are classified into main accounts such as assets, liabilities, property rights, expenses and revenues. These accounts are in the first level of the classification, and then sub-accounts are created from them at different levels, gradually from the second, third, fourth and fifth levels. The company’s financial management has flexibility in designing the account tree in terms of the number of levels And the method of numbering and sequencing accounts within the directory

Classification of accounts according to financial statements
According to the accounting equation for the statement of financial position, which states:
All accounts related to assets, liabilities and property rights within the ERP system are linked to the statement of financial position or the balance sheet, as any financial movement directly affects the results and balances of the budget

The assets account is divided into two sub-accounts: current assets and fixed assets
As for the liabilities account, it is divided into current liabilities and long-term liabilities
Finally, the equity account is divided into the capital account, the retained earnings account, and the reserves account
As for the income and expense account, it follows the income statement or the profit and loss statement, which is the list concerned with showing the result of the establishment’s business of profits or losses during a specific accounting period.
Profit or loss equation in Afaky integrated accounting system ERP
Profits are realized if revenues exceed expenses, and vice versa, losses are realized if expenses exceed revenues