Account
Overview
Account – Business Overview
Account is a foundational setup document in Dafater that defines how your organization records, tracks, and reports all financial activities. Each Account represents a specific financial head—such as cash, bank balances, sales revenue, expenses, assets, or liabilities—against which accounting entries are posted and balances are maintained.
In simple terms, Accounts form the financial structure of your business and are the backbone of accurate bookkeeping and financial reporting.
What Account Is Used For in Business Operations
Accounts are used to:
- Record every financial transaction in the correct financial category
- Track balances for assets, liabilities, income, and expenses
- Generate financial reports such as Balance Sheet and Profit & Loss
- Ensure financial transparency and compliance
- Support budgeting, audits, and decision-making
Every payment, receipt, invoice, expense, or adjustment ultimately affects one or more Accounts.
Prerequisites and Setup Requirements
Before using Accounts effectively, the following should be in place:
- A clear understanding of your business’s financial structure
- Defined accounting periods and fiscal years
- Agreed chart of financial heads based on your business needs
- Knowledge of how your business classifies income, expenses, assets, and liabilities
Typically, Accounts are set up during initial system configuration and reviewed periodically as the business grows.
Typical Workflow and Business Fit
Create Accounts
Define Accounts for major financial categories such as cash, bank, sales, expenses, payables, and receivables.Organize Accounts into Groups
Group related Accounts to create a logical financial hierarchy that reflects your business structure.Use Accounts in Daily Transactions
Accounts are automatically or manually selected when recording sales, purchases, payments, receipts, and adjustments.Track Balances Over Time
As transactions occur, balances are updated and maintained within each Account.Review Financial Reports
Reports pull data from Accounts to show financial position and performance.
Key Business Scenarios Where Account Is Essential
- Daily bookkeeping – Recording sales, purchases, expenses, and payments
- Cash and bank management – Monitoring available funds
- Customer and supplier tracking – Managing receivables and payables
- Financial reporting – Preparing Balance Sheet, Profit & Loss, and trial balances
- Business planning – Analyzing cost structures and revenue streams
- Audit and compliance – Providing clear financial trails and accountability
Without properly defined Accounts, accurate financial management is not possible.
Important Considerations for Users
- Accounts should be named clearly and consistently to avoid confusion
- Once transactions exist, changing Account structure should be done cautiously
- Avoid creating too many similar Accounts, which can complicate reporting
- Regularly review Accounts to ensure they still reflect current business operations
- Ensure users understand which Account to use in each business scenario
Summary
The Account document is the financial backbone of Dafater. It defines where money comes from, where it goes, and how balances are tracked. Properly structured Accounts ensure reliable financial records, meaningful reports, and confident business decision-making.
Heads (or groups) against which Accounting Entries are made and balances are maintained.
Basic Information
- Module: Accounts
- Document Type: Setup
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| disabled | Disable | Check | - | Marks account inactive and unavailable for transactions in Dafater | |
| account_name | Account Name | Data | ✓ | - | Official name of the account used across Dafater reports |
| account_number | Account Number | Data | - | Unique reference number for identifying the account in Dafater | |
| is_group | Is Group | Check | - | Indicates whether account groups child accounts in Dafater | |
| company | Company | Link | ✓ | Company | Company to which this account belongs in Dafater |
| root_type | Root Type | Select | , Asset, Liability, Income, Expense, Equity | Primary accounting classification used by Dafater financial statements | |
| report_type | Report Type | Select | , Balance Sheet, Profit and Loss | Financial report where this account appears in Dafater | |
| account_currency | Currency | Link | Currency | Currency in which this account is maintained in Dafater | |
| parent_account | Parent Account | Link | ✓ | Account | Higher-level account under which this account is grouped |
| account_type | Account Type | Select | , Accumulated Depreciation, Asset Received But ... | Defines accounting behavior and usage of account in Dafater | |
| tax_rate | Tax Rate | Float | - | Default tax percentage applied for this account in Dafater | |
| freeze_account | Frozen | Select | No, Yes | Restricts posting entries to this account in Dafater | |
| balancemustbe | Balance must be | Select | , Debit, Credit | Specifies whether account normally holds debit or credit balance | |
| lft | Lft | Int | - | System-generated value for hierarchical ordering in Dafater | |
| rgt | Rgt | Int | - | System-generated value for hierarchical positioning in Dafater | |
| old_parent | Old Parent | Data | - | Previously assigned parent account for audit reference | |
| includeingross | Include in gross | Check | - | Includes account values in gross calculations within Dafater |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Accounts Manager | ✓ | ✓ | ✓ | ✓ | ||
| Purchase User | ✓ | |||||
| Accounts User | ✓ | ✓ | ✓ | ✓ | ||
| Auditor | ✓ | |||||
| Sales User | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Account Closing Balance | Linked from | Accounts |
| Asset Capitalization | Linked from | Assets |
| Asset Value Adjustment | Linked from | Assets |
| Bank Account | Linked from | Accounts |
| Bank Clearance | Linked from | Accounts |
| Bank Guarantee | Linked from | Accounts |
| Bulk Salary Structure Assignment | Linked from | Payroll |
| Company | Linked from | Setup |
| Dunning | Linked from | Accounts |
| Dunning Type | Linked from | Accounts |
| Employee Advance | Linked from | HR |
| Expense Claim | Linked from | HR |
| GL Entry | Linked from | Accounts |
| Gratuity | Linked from | Payroll |
| Import Supplier Invoice | Linked from | Regional |
| Invoice Discounting | Linked from | Accounts |
| Leave Encashment | Linked from | HR |
| Ledger Merge | Linked from | Accounts |
| Loan | Linked from | Loan Management |
| Loan Adjustment | Linked from | Loan Management |
| Loan Balance Adjustment | Linked from | Loan Management |
| Loan Disbursement | Linked from | Loan Management |
| Loan Partner | Linked from | Loan Management |
| Loan Product | Linked from | Loan Management |
| Loan Refund | Linked from | Loan Management |
| Loan Repayment | Linked from | Loan Management |
| Loan Write Off | Linked from | Loan Management |
| Loyalty Program | Linked from | Accounts |
| POS Invoice | Linked from | Accounts |
| POS Profile | Linked from | Accounts |
| Payment Entry | Linked from | Accounts |
| Payment Gateway Account | Linked from | Accounts |
| Payment Ledger Entry | Linked from | Accounts |
| Payment Reconciliation | Linked from | Accounts |
| Payroll Entry | Linked from | Payroll |
| Period Closing Voucher | Linked from | Accounts |
| Process Deferred Accounting | Linked from | Accounts |
| Process Payment Reconciliation | Linked from | Accounts |
| Process Statement Of Accounts | Linked from | Accounts |
| Purchase Invoice | Linked from | Accounts |
| Salary Structure | Linked from | Payroll |
| Salary Structure Assignment | Linked from | Payroll |
| Sales Invoice | Linked from | Accounts |
| Share Transfer | Linked from | Accounts |
| Shipping Rule | Linked from | Accounts |
| Stock Reconciliation | Linked from | Stock |
| Warehouse | Linked from | Stock |
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Currency | Links to | Geo |