Financial & Accounting

The Financial and Accounting module provides the structure and functionalities necessary for accurate financial recording, reporting, and analysis within your organization.

It is organized into three key components:

Ledger: The Ledger in Composity's Accounting Module is a fundamental tool for recording and managing financial transactions, enabling detailed and efficient tracking of financial activities.
Chart of Accounts: With the Chart of Accounts, you can categorize financial transactions and organize accounting records effectively.
Journal: The Journal feature helps you maintain well-organized and categorized financial records, with the ability to specify the type (e.g., sales, purchases, or other).

Adding Chart of Accounts

To create a new chart of accounts entry:

Click on the "New" button.
Code: Provide a unique code to distinguish this entry.
Name: Specify a descriptive name that clearly represents the purpose of the account.
Main chart of accounts: Select from the pre-fetched options based on your initial chart of accounts setup.
Type: Indicate whether the entry pertains to the Balance Sheet, Profit/Loss, or Customer/Suppliers.
Status: Specify whether the entry is active.
Save the chart of accounts.

Adding a Journal

To create a new journal:

Click on the "New" button.
Fill in the required fields: Assign a unique code and name for identification.
Type: Choose the appropriate category such as Sales, Purchase, or Other.
Status: Specify if the journal is currently active.
Save the journal.

Adding a Ledger

To create a new ledger entry:

Click on the "New Ledger" button.
Select the status: Choose from Draft, Soft Posted, or Hard Posted.
Specify the company: Assign the ledger entry to a specific company.
Journal: Pick a previously created journal within Composity.
Set the date and period: Record the financial transaction accurately.
Description: Optionally provide a brief memo to clarify the ledger entry.
Add additional rows: If multiple transactions are involved, click "Add Row" to include each individually.
Account details: For each row, include the reference, chart of account, amounts in original and local currencies, exchange rate, and debit or credit information.
Billing data: Optionally include related billing data such as location, project, item, asset, and description.
Save the ledger.

Asset Management
The Asset section allows you to track and manage your organization's assets, including their depreciation and related financial data.
To create and manage assets:

Click on "New Asset" in the Asset section.
Fill in the required fields:
Basic Details
Code: Provide a unique identifier for the asset.
Name: Specify the name of the asset.

Depreciation Settings

Is accounting depreciable?: Indicate if the asset is subject to accounting depreciation.
Is tax depreciable?: Indicate if the asset is subject to tax depreciation.

Location and Type

Location: Specify the asset’s location by selecting from the available options.
Type: Choose the asset type from the predefined list.

User Assignment

User: Assign the asset to a user.

Acquisition Details

Acquisition Date: Record the date the asset was acquired.
Acquisition Value: Enter the purchase value of the asset.

Depreciation Information

Depreciation Value Initial: Specify the initial depreciation value, if applicable.
Depreciation Rate: Set the monthly depreciation rate.
Depreciation Amount (Monthly): The system calculates the monthly depreciation amount based on the entered rate.
Period Start and Period End: Define the duration for the depreciation period.
Period Last Depreciation: Record the date of the last depreciation entry.

Tax Depreciation Information

Depreciation Rate Tax: Specify the depreciation rate for tax purposes.
Depreciation Amount Tax: The system calculates the tax depreciation amount based on the entered rate.
Period Start Tax and Period End Tax: Define the tax depreciation period.

Chart of Account

Chart of Account: Link the asset to a specific chart of accounts entry by selecting from the list and save.