A well-structured Chart of Accounts (COA) is the backbone of your accounting system in ABSS Desktop. Whether you’re setting up your system for the first time or refining your financial structure, understanding how to organise accounts correctly will ensure accurate reporting, smoother transactions, and better financial visibility.
In this guide, we’ll walk through everything you need to know—from classifications and numbering to managing accounts and generating reports.
1. Account Classifications (The Building Blocks)
ABSS uses 8 main account classifications, each representing a different financial category:
Prefix | Type | Description |
|---|---|---|
1 | Asset | What the business owns (cash, receivables, equipment) |
2 | Liability | What the business owes (loans, payables) |
3 | Equity | Owner’s interest in the business |
4 | Income | Revenue earned from business activities |
5 | Cost of Sales | Direct costs tied to revenue |
6 | Expense | Operating expenses (rent, salaries) |
8 | Other Income | Non-core income (interest, gains) |
9 | Other Expense | Non-operating costs |
Each account is categorised under one of these, ensuring clear reporting and compliance with accounting principles.
2. Account Numbering Structure
Every account in ABSS follows a structured numbering format:
[Prefix]-[4 digit number]
Example: 1-2110 (Bank Account)
Key Rules:
- The prefix defines account type (e.g., 1 = Asset)
- The 4-digit number can range from 0001–9999
- ABSS automatically pads numbers with zeros if needed
- Avoid using “0000” as an account number
This structure keeps accounts organised and makes grouping easier.
3. Header vs Detail Accounts
Understanding this hierarchy is critical for structuring your COA.
Header Accounts
- Act as grouping categories
- Displayed in bold
- Show totals/subtotals
- Do not record transactions
Detail Accounts
- Used for actual transaction entries
- Sit under header accounts
- Represent specific accounts (e.g., “HSBC Bank”, “Rental Expense”)
Example Structure:
1-0000 Assets (Header)
1-2100 Bank & Cash (Header)
1-2110 HSBC (Detail)
1-2120 OCBC (Detail)
All financial transactions must be recorded in detail accounts only.
4. Linked Accounts (Why They Matter)
ABSS uses Linked Accounts to automate double-entry accounting.
What are they?
- Predefined accounts tied to system functions (Sales, Purchases, Banking)
- Automatically updated when transactions are recorded
Why they matter:
- Ensures accuracy of financial postings
- Maintains double-entry rules
- Reduces manual errors
Important Notes:
- Linked accounts are marked with a tick in the system
- They cannot be deleted
- You can modify (rename/renumber) but should avoid unnecessary changes
These accounts are essential for system integrity.
5. Creating, Editing & Deleting Accounts
Creating a New Account
- Go to Accounts Command Centre, Accounts List
- Click New
- Choose:
- Header or Detail
- Account type (Asset, Expense, etc.)
- Enter account number & name
- Save
Editing an Account
- Open Accounts List
- Click the account arrow (autofeed)
- Update details (name, number, etc.)
- Click OK
Deleting an Account
You can only delete accounts that:
- Have zero balance
- Have no transactions
- Are not linked accounts
- Are not essential header accounts
ABSS restricts deletion to protect data integrity.
6. Entering Opening Balances
After setting up your accounts, the next step is entering opening balances.
Steps:
- Go to Setup, Easy Setup Assistant
- Choose Accounts
- Proceed to Opening Balances
- Enter balances for each account
- Ensure Amount Left to Be Allocated is zero.
7. Generating Accounts Reports
Once your Chart of Accounts is ready, you can generate reports to review and analyse data.
Common Reports:
- Account List Summary
- Account List Detail
- Trial Balance
- Linked Accounts Report
How to Generate:
- Go to Reports, Index to Reports
- Select Accounts tab
- Choose report (e.g., Account List Detail)
- Click Customise
- Click Display
Reports help validate setup and provide financial insights.
Best Practices for Chart of Accounts Setup
- Keep your structure simple and scalable
- Use consistent numbering logic
- Avoid unnecessary account duplication
- Keep linked accounts intact
- Review reports after setup
Conclusion
A well-designed Chart of Accounts sets the foundation for:
- Accurate financial records
- Efficient transaction processing
- Meaningful reporting
By investing time in setting it up properly in ABSS, you’ll save hours of troubleshooting and gain clearer insights into your business performance.
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