FAQ: Managing the Chart

FAQ: Managing the Chart

Can I change an account's code or type after it is created?

No. Once an account is created, its code and type (Asset, Liability, Expense, etc.) are locked to prevent breaking historical transactions. If you need to change a code or type, you must create a new account and migrate balances (usually by recording a journal entry). Archive the old account to keep it out of transaction forms.

What happens if I delete an account?

Do not delete accounts that have transactions. Deletion can corrupt historical data, reports, and audit trails. Instead, archive the account. Archived accounts are hidden from new transaction forms but remain queryable in reports and history.

If an account was created by mistake and has no transactions, you may safely delete it. Check with your accountant if you are unsure.

Why can't I post to a system account manually?

System accounts (Accounts Receivable, Accounts Payable, COGS, etc.) are managed by the application. When you record an invoice, the system automatically posts to Accounts Receivable—you specify the invoice amount and line items, not the general ledger posting. This enforces consistency and prevents manual posting errors.

If you need to make a manual adjustment to a system account, record a journal entry instead of editing the account directly.

Can I have multiple accounts for the same thing (e.g., two "Bank" accounts)?

Yes, and it's common. If you operate multiple bank accounts, separate branches, or maintain accounts in different currencies, create separate accounts for each. Use consistent naming and tags to keep them organized (e.g., Main Bank, Branch Bank, Currency - EUR).

Do not create duplicate accounts just to subdivide reporting; instead, use account tags or cost centers to classify a single account multiple ways.

What if I change an account's currency after it's been used?

Changing an account's currency can cause posting and reporting inconsistencies, especially if transactions already exist in a different currency. Avoid changing currency once an account is in use. If you must, consult your accountant or Usystems support.

How do I organize a large chart of accounts?

• Use codes strategically: Start with an account-numbering scheme (e.g., 1xxx = Assets, 2xxx = Liabilities). This makes the chart scannable.
• Group by business unit: If you have multiple operations (pharmacy, OPD, HR), create separate account families and use tags to mark which belongs to which.
• Limit nesting depth: Avoid deeply nested sub-accounts. A flat, clearly named chart is easier to navigate than a 5-level hierarchy.
• Document your structure: Maintain a separate document (or comment field) describing your chart's logic, so new accountants understand the organization.

Why do I need a "Rounding" account?

In multi-currency environments, automated calculations (especially exchange rate conversions) can produce tiny rounding differences. A Rounding account captures these so the ledger balances. It is usually very small and inactive; you do not need to monitor it closely unless rounding differences are unexpectedly large.

Can I merge two accounts?

There is no automatic merge function. To consolidate two accounts:

1. Create a journal entry to move the balance from one account to the other.
2. Archive the source account.

Always ensure the ledger balances before and after the merge.

How often should I review my chart of accounts?

• Quarterly: Review for unused accounts (candidates for archival) and ensure account names remain descriptive.
• Annually: Before audit or period close, verify that all required system accounts are present and correctly configured.
• When business changes: If you launch a new product line, geographic region, or warehouse, add appropriate accounts immediately rather than retroactively.