# Accounting, reports, banking, tax, and payments

> Screenshots use representative demo data captured from a live environment. Some lists show empty states where the demo tenant is unseeded. Never use real customer records, secrets, or payment keys in a public demo.

A practical walkthrough of the finance workspace: the chart of accounts, journal entries, customer invoices, vendor bills, payments, the full management report set, bank reconciliation, tax, and multi-currency operations.

[← Public docs landing](README.md) · [Open HTML version](finance.html)

## What the finance workspace is

The **Accounting** area is the double-entry heart of ColorsX74 ERP. Every commercial document elsewhere — a sales invoice, a vendor bill, a payment, a fixed-asset purchase — lands here as a journal entry against the chart of accounts and rolls up into the management reports. It is reached from *Accounting* in the navigation; advanced finance (FX revaluation, budgets, fixed assets, payment-gateway config, bank feed) sits behind the *Advanced Features* tab via the accounting-advanced add-on.

## Chart of Accounts — the foundation

- **What.** The master list of ledger accounts (assets, liabilities, equity, income, expenses) every transaction posts to.
- **How.** *Accounting → Chart of Accounts*. Search by name/code, filter by type, and use *+ New Account* (pick the type first — it drives the financial statements).
- **Wisely.** Decide your numbering convention before creating accounts. Prefer fewer, well-named accounts; use departments/projects for analysis. Posted accounts are deactivated, not deleted.

![Chart of Accounts](assets/screenshots/web/accounting-accounts.png)

## Journal Entries — manual postings and the audit trail

- **What.** Balanced debits/credits posted to the ledger. Most are automatic; this screen is for opening balances, accruals, depreciation, and corrections.
- **How.** Create an entry, set date and a clear description, add lines until debits equal credits (unbalanced entries cannot post).
- **Wisely.** Write descriptions an auditor will understand later. Use dated reversing entries for accruals. Keep manual entries to genuine adjustments.

![Journal Entries](assets/screenshots/web/accounting-journal-entries.png)

## Customer Invoices — receivables

- **What.** What customers owe you; posts revenue and a receivable, drives aging.
- **How.** *Accounting → Invoices*, or create from Sales where they link to orders. Clear balances via Payments.
- **Wisely.** Let due dates drive follow-up. Keep drafts as drafts. Reconcile the subledger to the receivables control account.

![Invoices](assets/screenshots/web/accounting-invoices.png)

## Vendor Bills — payables

- **What.** What you owe suppliers; posts an expense/asset and a payable.
- **How.** *Accounting → Vendor Bills*, or let them flow from Purchase with three-way match against a PO and receipt.
- **Wisely.** Use the supplier's bill date for correct cut-off. Match before approving — three-way match is your strongest control against duplicate/fraudulent invoices.

![Vendor Bills](assets/screenshots/web/accounting-vendor-bills.png)

## Payments — money in and out

- **What.** Customer receipts that clear invoices and supplier payments that clear bills, each linked to a bank/cash account.
- **How.** *Accounting → Payments*. Allocate to one or more open documents; partial and multi-invoice allocations are supported.
- **Wisely.** Always allocate to specific documents (unallocated cash distorts aging). Record against the bank account actually used so reconciliation ties out.

![Payments](assets/screenshots/web/accounting-payments.png)

## Management reports — proving the numbers

Each report takes a date/range. Start with the Trial Balance to confirm the books balance, then read the P&L and Balance Sheet; drill into the General Ledger for detail.

| Report | What it tells you | Image |
|---|---|---|
| Trial Balance | First close check — every account's balance, totals must agree | ![Trial Balance](assets/screenshots/web/report-trial-balance.png) |
| Profit & Loss | Income less expenses for the period | ![Profit and Loss](assets/screenshots/web/report-profit-loss.png) |
| Balance Sheet | Assets, liabilities, equity at a point in time | ![Balance Sheet](assets/screenshots/web/report-balance-sheet.png) |
| Aging | Receivables/payables bucketed by age | ![Aging](assets/screenshots/web/report-aging.png) |
| General Ledger | Every posting to every account, in date order | ![General Ledger](assets/screenshots/web/report-general-ledger.png) |
| Cash Flow | Where cash came from and went | ![Cash Flow](assets/screenshots/web/report-cash-flow.png) |
| Budget Variance (advanced) | Actuals vs budget by account | ![Budget Variance](assets/screenshots/web/report-budget-variance.png) |
| Comparative P&L (advanced) | This period beside prior periods | ![Comparative P&L](assets/screenshots/web/report-comparative-pl.png) |

**Wisely.** Close in order: reconcile, post adjustments, then trust the Trial Balance before the P&L/Balance Sheet. Read Aging and Cash Flow alongside profit. Drill the General Ledger when a number surprises you.

## Bank reconciliation

- **What.** Matches ledger movements to the bank statement to catch missing entries, duplicates, and charges.
- **How.** *Accounting → Bank Reconciliation* — pick account and period, match each statement line; unmatched items are the work to investigate. The *Banking* area gives the account overview.
- **Wisely.** Reconcile every account every period. Investigate unmatched items immediately. Never force a balance with a plug entry.

![Bank Reconciliation](assets/screenshots/web/accounting-bank-reconciliation.png) ![Banking](assets/screenshots/web/banking.png)

## Tax

- **What.** Defines tax codes/rates that invoices and bills apply, and the position behind a return.
- **How.** *Accounting → Tax* to set rates; codes then appear on document lines.
- **Wisely.** Match codes to your jurisdiction's return lines. Set rates up before invoicing. Review the position before each filing.

![Tax](assets/screenshots/web/accounting-tax.png)

## Multi-currency and exchange rates

- **What.** Transact in foreign currencies; core does rate lookup, advanced adds rate management and the period-end FX revaluation run.
- **How.** Maintain rates in Settings, review on Exchange Rates; run FX Revaluation at period end to recognise unrealised gains/losses.
- **Wisely.** Keep rates current; run revaluation as part of close and document the rate source.

![Exchange Rates](assets/screenshots/web/accounting-exchange-rates.png) ![FX Revaluation](assets/screenshots/web/accounting-fx-revaluation.png)

## Advanced finance: budgets, fixed assets, payment gateways

Delivered by the accounting-advanced add-on under *Advanced Features*.

| Feature | Purpose | Image |
|---|---|---|
| Budgets | Set targets by account/period; actuals flow to Budget Variance | ![Budgets](assets/screenshots/web/accounting-budgets.png) |
| Fixed Assets | Register assets and schedule depreciation | ![Fixed Assets](assets/screenshots/web/accounting-fixed-assets.png) |
| Payment Gateways | Configure online payment providers (never expose live keys) | ![Payment Gateways](assets/screenshots/web/accounting-payment-gateways.png) |

## Related pages

- [Overview, login, and dashboard](overview.md)
- [Sales, purchase, contracts, and rental](commercial.md)
- [Inventory, manufacturing, marketplace, and add-ons](operations.md)
- [AI, ARIA assistant, document scan & draft, and AI setup](ai-automation.md)
- [Admin, settings, security, module access, audit, and approvals](admin-security.md)
- [Troubleshooting, browser requirements, and support handoff](troubleshooting.md)