How to define debit/credit mappings for accounts?


Joined
Apr 21, 2021
Messages
2
Reaction score
0
Country
Pakistan
Hi

I am a software engineer and developing fee system for a group of institutes. Since institutes are different in nature, thus client wants flexibility and to be able to configure CoA on their own with multiple hierarchies like

Assets
Accounts Receivable
Tuition Fee
Exam Fund
blah blah

Similar hierarchy would be used for expenses to defined discounts etc and income. I have two questions:

1. If a students monthly fee invoice is generated involving different fee particulars, discounts etc, multiple accounts (in hierarchy) will need to be debited, credited. I can map an account receivable account like Tuition Fee with a fee particular and similarly an expense account with Discount. On invoice generation I can debit /credit relevant accounts, but how can I determine which income account to be updated from the hierarchy? I believe I need to have this mapping configure. Should I allow mapping/configuration of debit and credit account(s) against each account? which would make make accounts table something like:

Accounts_Table:
- id
- code
- title
- parent_account
- debit_account (account to be debited if defined account is credited)
- credit_account (account to be credited if defined account is debited)

2. Should Cash have child accounts, I mean cash is cash, but client is insisting on defining hierarchy for Cash too
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,129
Reaction score
291
Country
United States
I have seen this problem over and over again.

The problem is your client representative is unclear on what they want and therefore has solved their problem by moving it to your shoulders. This is done by asking for the system to do "anything and everything".
What is wrong with that is then you now have been given the responsibility to make accounting related decisions. As proof - here you are - a software engineer - asking questions on a forum for accountants.
Where that leads, if not stopped, is you indeed make the system very flexible. In the process, that flexibility leads to the system making illogical accounting entries. And when that problem surfaces, the client representative is happy to let the blame land squarely on your back.

The best fix is for you to go back to the client and insist on being given system specifications so you know what it is the system is expected to do. That includes what exact accounting entry the system will make. I can imagine, though, at this point that might be hard for you to do, especially if you have no one, no manager, who is on your side and can help you.

If you cannot get specs, then I suggest you issue a written proposal for each step you plan to take and get client signoff before proceeding.

Good luck
 
Joined
Apr 21, 2021
Messages
2
Reaction score
0
Country
Pakistan
@kirby Thanks for an elaborative response

Unfortunate for me, everything you have said is true. I will get back to them.

If they are agreed to provide me details of accounting entries against each transaction. In the backend (invisible to client), I would still like to configure these specifications somewhere because I would like myself not be making code level changes in accounting module for any new type of transactions. Can I do that? Like when fee vouchers are issues, I read the specification and know which accounts to debit/credit. Likewise, when fee is paid, particular accounts should be debited and credited.

I can remove these fields
- debit_account (account to be debited if defined account is credited)
- credit_account (account to be credited if defined account is debited)

from accounts table and maintain in a different table which will not be visible in client interface. Can such thing exist in a domain specific accounting system?
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,129
Reaction score
291
Country
United States
I suggest leaving the tables visible to the client but add a password protection. That way only authorized client staff can make changes.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top