How to set up the chart of accounts

Making the basic levels of the tree according to the Egyptian standards, collecting accounts within the entity, linking accounts to the basic levels, determining the nature of the account, and classifying the accounts to appear in reports in a specific form

Attia Hamdy - • Capital ERP for System Managment

How to set up the chart of accounts :

Making the basic levels of the tree according to Egyptian standards

Group accounts within an entity

Linking accounts to basic levels

Determine the nature of the account

Categorize accounts to appear in reports in a specific format

First: Making the basic levels of the tree according to Egyptian standards:

The first level contains:


Property rights.





The second level is the division of each item of the first level as follows:

The first item: assets, which are divided into long-term assets and current assets.

The second item: Equity is divided into capital, reserves and profits.

The third item: Obligations are divided into long-term obligations and current obligations.

Fourth item: Revenues are divided into revenues related to the activity and other revenues

Fifth item: Costs are divided into the cost of revenue / sales, charged costs (expenses charged for manufacturing activity), operating expenses (production expenses for manufacturing activity) and production depreciation (manufacturing activity).

Item Six: Expenses are divided into sales and distribution expenses (marketing), administrative expenses (general) and financing expenses.

The third level, which is the division of the items of the second level as follows:

The first item: long-term assets: divided into (fixed assets -

Long-term investments – projects under implementation – intangible assets -.....)

The second item: Current assets are divided into (inventory - operations under implementation" activity

Contracting - customers and receivables - subsidiaries and sister companies - debtors and balances of another city - cash and the like -.....)

Fourth item: The capital is decomposed into the paid-up capital

Article Five: Reserves, which are the reserves set aside.

Fifth item: Profits are divided into (profits of the stage and profits of the "year" period)

Article Six: Long-term liabilities divided into (loans and financing - deferred tax obligations)

Article Seven: Current obligations divided into (suppliers and payment papers - creditors and other credit balances - and control of purchases and their returns)

Article Eight: Revenues related to the activity and divided into (sales - sales returns - discounts)

Article Nine: Other revenues, which are revenues not related to the activity and are divided into (revenues from the sale of waste - profits "losses" capital)

Item Ten: The cost of revenue / sales, which is the cost of warehouse exchange.

Eleventh item: Costs charged "manufacturing activity" are divided into (direct wages charged - indirect industrial expenses charged -.....)

Item Twelve: Operating expenses (production) "manufacturing activity" divided into (operating wages - and other operating expenses)

Article Thirteen: Productive Depreciation, which is the depreciation of assets related to production

Article Fourteen: Selling and distribution expenses (marketing) divided into (sales and distribution fees - and other selling and distribution expenses)

Article Fifteen: Administrative expenses (general) divided into (administrative fees - and other administrative expenses)

Article Sixteen: Financing expenses divided into (financial leasing expenses - and loan interest expenses)

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