Accounting - Preferences

You can configure preferences for the Accounting module in order to align Zoho ERP with your business requirements. To do so:

Go to Settings.
Under Module Settings, select Accounting under General.

In the next page, you can configure the following preferences:

General Preferences

Chart of Accounts

Make Account Code mandatory for new accounts: Enable this option to require users to enter an account code when creating a new account.
Enter a unique Account Code for accounts created: Enable this option to make users assign unique account code to accounts that were created earlier without one.
Auto-generate account codes: Enable this option to auto-generate account codes for new accounts. Once enabled, you cannot update or disable this preference.
Configure account code formats for sub-account types: Enable this option if you want the sub-accounts also to have unique account codes.
Under Account Code Table Format, configure the format for auto-generated account codes.

Default Account For Currency Exchange Gain or Loss

When you record transactions in foreign currencies, exchange rate changes can create small gains or losses when converted to your organisation’s base currency. To report these differences accurately, configure default accounts for exchange gains and losses.

Track gains and losses in one account: Choose this option to record both exchange gains and exchange losses in a single expense account. Then, select the account from the dropdown.
Track gains and losses in separate accounts: Choose this option to record exchange gains and exchange losses in different accounts. Then, select the appropriate accounts from each dropdown.

Default Account For Exchange Adjustments in Transactions

When you record transactions in foreign currencies, rounding differences may occur when values are converted. To ensure accurate accounting, the system records these adjustments under an account. By default, the Exchange Gain or Loss account is selected in this dropdown.

Journal Preferences

Allow journals to be generated in the background: When you enable this option, Zoho ERP creates journal entries for your transactions in the background instead of doing it immediately. You can continue working without waiting for the journal entries to finish generating.
Allow 13th Month Adjustments in manual journals: Enable this option to create 13th-month adjustment journal entries for the selected fiscal year. This allows you to make end-of-period corrections or balance adjustments for accurate financial reporting.

Recurring Journals

If you’ve enabled the Recurring Journals module in your organisation, choose one of the following preferences:

Create manual journals in the Draft state: Enable this option to save new manual journal entries as drafts. You can review and publish them later.
Create manual journals in the Published state: Enable this option to create and publish manual journal entries immediately.

Default Account Tracking

Navigate to this tab to configure default accounts for each account type. These accounts will be auto-populated when you create new transactions.

Journal Approvals

Navigate to this tab to configure approvals for manual journals to ensure they are reviewed before posting. When users create a manual journal, the system sends it for approval instead of publishing it immediately. Approvers can review the entry and approve or reject it, helping you maintain control and ensure accurate accounting. Learn more about Approvals.

Validation Rules For Journals

Set validation rules for journals to ensure users enter complete and accurate information. Zoho ERP checks the data entered against these rules before publishing the journal. This helps prevent errors and ensures your journals follow accounting standards. Learn more about Validation Rules.

Custom Fields For Journals

Create custom fields for journal entries to capture additional information based on your business needs. Zoho ERP displays these fields when users create or edit journals. Learn more about Field Customization.

Similarly, you can also create custom fields for recurring journals and fixed assets.