Accounting Module Guide

Product: Lofty Golden Oil ERP
URL: https://loftygoldenoil.com
Applicable Roles: Accountant, Admin

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Overview

The Accounting module is the financial core of the Lofty Golden Oil ERP system. It provides tools for recording, tracking, and reporting all financial transactions. The module consists of five main tabs — General Ledger, Vouchers, Journal Entries, Trial Balance, and P&L Statement — plus dedicated sections for Expenses, Bank Reconciliation, and the Chart of Accounts.

All accounting data is stored across the expenses, ar_invoices, ar_payments, audit_log, and related tables in MySQL 8.0. Every financial action is logged to the audit trail for compliance.

Access: Navigate to Accounting in the left sidebar. Only users with the Admin or Accountant role can access this module.

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General Ledger

The General Ledger (GL) is the central record of all financial transactions. Every voucher, journal entry, invoice, and payment posts to the GL.

Viewing GL Entries

1. Click Accounting in the sidebar, then select the General Ledger tab (default view).
2. The entries table displays all GL records with the following columns:

Column	Description
Date	Transaction date
Account	Account name and code
Description	Narrative of the transaction
Debit	Debit amount (₦)
Credit	Credit amount (₦)
Balance	Running balance after this entry

3. Entries are displayed in reverse chronological order (newest first).
4. Scroll or paginate through results using the table controls at the bottom.

Filtering by Date Range

1. In the General Ledger tab, locate the Date Range filter above the table.
2. Select a Start Date to filter entries from that date onward.
3. Select an End Date to filter entries up to that date.
4. Leave either field blank for an open-ended range.
5. The table updates automatically to show only entries within the selected range.

Understanding Account Types

The Chart of Accounts uses five fundamental types:

Type	Normal Balance	Examples
Asset	Debit	Cash, Bank, Inventory, Accounts Receivable
Liability	Credit	Accounts Payable, Loans, VAT Payable
Equity	Credit	Owner's Equity, Retained Earnings
Revenue	Credit	Sales Revenue, Interest Income
Expense	Debit	Rent, Utilities, Salaries, Transportation

Debits vs. Credits

• Every transaction must have equal total debits and credits (double-entry bookkeeping).
• Debit increases assets and expenses; decreases liabilities, equity, and revenue.
• Credit increases liabilities, equity, and revenue; decreases assets and expenses.
• If a GL entry has a debit of ₦50,000 and a credit of ₦50,000, the transaction is balanced.

Exporting GL Data

1. After filtering to your desired date range, click the Export button.
2. The system generates a CSV file containing all visible entries.
3. Save the file to your local machine for external analysis or reporting.

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Vouchers

Vouchers are the primary mechanism for recording financial transactions in the General Ledger. Use vouchers to record payments, receipts, adjustments, and other financial events.

Creating a Debit/Credit Voucher

1. Navigate to Accounting > Vouchers tab.
2. Click the + Create Voucher button.
3. Fill in the voucher form:

Field	Required	Description
Account Code	Yes	Select the account from the dropdown list (populated from Chart of Accounts)
Description	Yes	Enter a clear description of the transaction
Debit Amount	Yes*	Enter the debit amount in ₦ (*required if credit is zero)
Credit Amount	Yes*	Enter the credit amount in ₦ (*required if debit is zero)
Supporting Document Reference	No	Enter a reference number for the supporting document (invoice number, receipt number, etc.)

4. Important: A voucher must have either a debit or credit amount — not both. If the account is debited, enter the debit amount and leave credit at zero. If credited, do the reverse.
5. Click Save to post the voucher to the General Ledger.
6. The voucher entry appears immediately in the General Ledger tab.

Voucher Best Practices

• Always attach a supporting document reference for audit purposes.
• Use clear, specific descriptions (e.g., "Payment to Supplier XYZ for Palm Oil Purchase #PO-2026-045").
• Review the GL after posting to verify the entry appears correctly.

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Journal Entries

Journal entries allow for manual adjustments and corrections to the General Ledger. They are used when a simple voucher is insufficient — for example, when splitting a transaction across multiple accounts.

Viewing Journal Entries

1. Navigate to Accounting > Journal Entries tab.
2. The entries table displays:

Column	Description
Date	Date the entry was created
Reference	Unique reference number for the entry
Account	Account affected
Debit	Debit amount
Credit	Credit amount
Created By	User who created the entry

3. Entries can be filtered by date range using the filter controls above the table.

Creating a Manual Journal Entry

1. Click + Create Journal Entry on the Journal Entries tab.
2. Enter the Date for the entry.
3. Enter a Reference number (or use the auto-generated reference).
4. Add line items — each line must specify:
   • Account Code — select from the Chart of Accounts dropdown.
   • Description — narrative for this line.
   • Debit Amount — enter the debit amount (leave blank if crediting).
   • Credit Amount — enter the credit amount (leave blank if debiting).
5. Add additional lines by clicking + Add Line.
6. The system validates that total debits equal total credits before allowing you to save.
7. Click Save to post the journal entry.

Example — Recording a utility payment:

Line	Account	Debit	Credit
1	Utilities Expense (5001)	₦25,000	—
2	Bank Account (1002)	—	₦25,000

Reversing a Journal Entry

Reversals create a new journal entry that offsets the original, preserving the audit trail.

1. Navigate to Accounting > Journal Entries tab.
2. Locate the entry you wish to reverse in the table.
3. Click the Reverse button in the Actions column for that entry.
4. A confirmation dialog appears:

   "Are you sure you want to reverse this journal entry? This action will create a new entry that offsets the original."

5. Review the details in the confirmation dialog.
6. Click Confirm to proceed with the reversal.
7. The system creates a new journal entry with the debits and credits swapped, referencing the original entry number.
8. Both the original and reversal entries remain in the ledger for audit purposes.

Important: Reversed entries cannot be un-reversed. If an error was made, create a new correcting entry instead.

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Trial Balance

The Trial Balance is an auto-generated report that summarizes the debit and credit balances of all accounts. It is used to verify that the General Ledger is in balance.

Generating the Trial Balance

1. Navigate to Accounting > Trial Balance tab.
2. The report generates automatically upon opening the tab.
3. No manual input is required — the system calculates balances from all GL entries.

Reading the Report

The Trial Balance displays:

Column	Description
Account Code	The account code from the Chart of Accounts
Account Name	The name of the account
Debit Balance	Total debit balance for the account
Credit Balance	Total credit balance for the account

Totals row: The bottom of the table shows:

• Total Debits — sum of all debit balances
• Total Credits — sum of all credit balances

Ensuring Balance

• The Trial Balance must balance — Total Debits must equal Total Credits.
• If the amounts are equal, the system displays a green "Balanced" indicator.
• If the amounts are unequal, the system displays a red "Unbalanced" indicator with the difference amount.

What to Do If Unbalanced

If the Trial Balance is unbalanced:

1. Check for recent entries. A recently created voucher or journal entry may have an error.
2. Review the General Ledger for entries with unequal debits and credits.
3. Look for missing entries. A transaction may have been partially recorded.
4. Use Journal Entries to create a correcting entry that balances the books.
5. Consult with your accountant if the discrepancy cannot be identified.
6. Do not proceed with financial reporting until the Trial Balance is balanced.

Exporting the Trial Balance

1. Click the Export button on the Trial Balance tab.
2. A CSV file is generated with all account balances.
3. Save the file for your records or for sharing with auditors.

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Profit & Loss Statement

The Profit & Loss (P&L) Statement shows the company's financial performance over a specific period by comparing revenue against expenses.

Generating a P&L Statement

1. Navigate to Accounting > P&L Statement tab.
2. Select a Start Date for the reporting period.
3. Select an End Date for the reporting period.
4. The statement generates automatically based on the selected date range.

Reading the P&L Statement

The statement is organized into three sections:

Revenue Section:

• Lists all revenue accounts (e.g., Sales Revenue, Interest Income)
• Shows the total revenue for the period

Expense Section:

• Lists all expense accounts (e.g., Rent, Utilities, Salaries, Transportation)
• Shows the total expenses for the period

Net Profit/Loss Calculation:

Net Profit/Loss = Total Revenue − Total Expenses

• A positive result indicates a Net Profit (displayed in green).
• A negative result indicates a Net Loss (displayed in red).

Exporting the P&L Statement

1. After generating the statement for your desired period, click Export.
2. A CSV file is generated with all revenue and expense line items.
3. Use the exported file for management reporting, tax filing, or auditing.

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Balance Sheet

The Balance Sheet provides a snapshot of the company's financial position at a specific point in time, following the accounting equation:

Assets = Liabilities + Equity

Generating the Balance Sheet

1. Navigate to the Balance Sheet section within the Accounting module.
2. Select a Date for the snapshot (e.g., end of month, end of fiscal year).
3. The system calculates balances from all GL entries up to the selected date.

Understanding the Sections

Assets:

• Current Assets: Cash, Bank, Accounts Receivable, Inventory
• Non-Current Assets: Equipment, Vehicles, Property

Liabilities:

• Current Liabilities: Accounts Payable, VAT Payable, Short-term Loans
• Non-Current Liabilities: Long-term Loans, Debentures

Equity:

• Owner's Equity, Retained Earnings, Current Year Profit/Loss

Verifying the Balance

• The total of Assets must equal the total of Liabilities plus Equity.
• If they do not match, review the General Ledger for unbalanced entries.
• Resolve discrepancies before finalizing financial statements.

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Bank Reconciliation

Bank Reconciliation matches your bank statement entries against the General Ledger to ensure accuracy and identify discrepancies.

Performing a Reconciliation

1. Navigate to Accounting > Bank Reconciliation.
2. Import or enter your bank statement entries for the reconciliation period.
3. The system displays unmatched GL entries on one side and bank statement entries on the other.
4. For each bank statement entry, find the matching GL entry:
   • Click on a bank statement entry.
   • Click on the corresponding GL entry.
   • Click Match to link them.
5. Matched entries are marked as Reconciled (green indicator).
6. Unmatched entries remain flagged for investigation.
7. Once all entries are matched, click Complete Reconciliation.

Handling Discrepancies

• Timing differences: Some transactions may appear in the bank but not yet in the GL (or vice versa). These will resolve in the next period.
• Missing entries: If a bank transaction has no corresponding GL entry, create a voucher or journal entry to record it.
• Errors: If amounts differ, investigate and correct the erroneous entry.

Reconciled Status

• Reconciled entries are locked and cannot be edited or deleted.
• This ensures the integrity of reconciled financial data.

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Expense Management

Expense Management provides a complete workflow for recording, approving, and tracking business expenses. For a detailed guide, see 12-expense-management.md.

Quick Reference

Action	Steps
Create Expense	Accounting > Expenses > + New Expense > Fill form > Save
Approve Expense	Accounting > Expenses > Click Approve on pending expense
Reject Expense	Accounting > Expenses > Click Reject on pending expense
Filter Expenses	Use Category, Date Range, and Status filters
Export Expenses	Click Export button to download CSV

Expense Categories

The system supports the following predefined categories:

1. Rent
2. Utilities
3. Salaries
4. Transportation
5. Marketing
6. Office Supplies
7. Maintenance
8. Taxes
9. Insurance
10. Other

Expense Status Workflow

Created (Pending) → Approved (Confirmed)
                  → Rejected (Denied)

• Pending (yellow badge): Awaiting approval from an Admin or Accountant.
• Approved (green badge): Expense confirmed and included in financial reporting.
• Rejected (red badge): Expense denied. Can be edited and resubmitted.

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Chart of Accounts

The Chart of Accounts is the hierarchical structure of all financial accounts used in the system.

Viewing the Chart of Accounts

1. Navigate to Accounting > Chart of Accounts (or access via Settings).
2. The chart displays accounts in a hierarchical tree structure:
   • Top level: Account types (Assets, Liabilities, Equity, Revenue, Expenses)
   • Second level: Sub-categories
   • Third level: Individual accounts

Account Code Structure

Each account has a unique code following a standard numbering convention:

Code Range	Account Type
1000–1999	Assets
2000–2999	Liabilities
3000–3999	Equity
4000–4999	Revenue
5000–5999	Expenses

Adding a New Account

1. Click + Add Account on the Chart of Accounts page.
2. Enter the Account Code (must be unique).
3. Enter the Account Name.
4. Select the Account Type from the dropdown.
5. Optionally, select a Parent Account to create a sub-account.
6. Click Save.
7. The new account appears in the hierarchy and becomes available in all dropdowns throughout the accounting module.

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Role Access Summary

Feature	Admin	Accountant	Other Roles
General Ledger	Full access	Full access	No access
Vouchers	Create, View	Create, View	No access
Journal Entries	Create, View, Reverse	Create, View, Reverse	No access
Trial Balance	View, Export	View, Export	No access
P&L Statement	View, Export	View, Export	No access
Balance Sheet	View, Export	View, Export	No access
Bank Reconciliation	Full access	Full access	No access
Expenses	Full access	Full access	No access
Chart of Accounts	Full access	View, Add	No access

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Troubleshooting

Issue	Solution
Cannot access Accounting module	Verify your role is Admin or Accountant in User Management
Trial Balance is unbalanced	Check General Ledger for missing or incorrect entries; create correcting journal entry
Export button not working	Ensure your browser allows file downloads; check the date range has entries
Voucher not saving	Verify Account Code is selected and Debit or Credit amount is entered
Journal entry reversal fails	Ensure the entry has not already been reversed