dbis_core/docs/accounting/CHART_OF_ACCOUNTS.md

General Ledger Chart of Accounts

Status: ✅ Deployable and Ready

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Overview

The DBIS Core system includes a comprehensive General Ledger Chart of Accounts that is compliant with both USGAAP (US Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards).

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Account Structure

Account Categories

Code Range	Category	Normal Balance	Description
1000-1999	Assets	DEBIT	Resources owned by the entity
2000-2999	Liabilities	CREDIT	Obligations owed by the entity
3000-3999	Equity	CREDIT	Owner's equity and reserves
4000-4999	Revenue	CREDIT	Income and gains
5000-6999	Expenses	DEBIT	Costs and losses
7000-9999	Other	Varies	Special purpose accounts

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Account Hierarchy

Level 1: Main Categories

• 1000 - ASSETS
• 2000 - LIABILITIES
• 3000 - EQUITY
• 4000 - REVENUE
• 5000 - EXPENSES

Level 2: Sub-Categories

• 1100 - Current Assets
• 1200 - Non-Current Assets
• 2100 - Current Liabilities
• 2200 - Non-Current Liabilities
• 3100 - Capital
• 3200 - Retained Earnings
• 3300 - Reserves
• 4100 - Operating Revenue
• 4200 - Non-Operating Revenue
• 5100 - Operating Expenses
• 5200 - Non-Operating Expenses

Level 3+: Detail Accounts

• 1110 - Cash and Cash Equivalents
• 1111 - Cash on Hand
• 1112 - Cash in Banks
• 1120 - Accounts Receivable
• 1130 - Settlement Assets
• 1140 - CBDC Holdings
• 1150 - GRU Holdings
• etc.

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USGAAP Compliance

Classification Mapping

Account	USGAAP Classification
1110	Cash and Cash Equivalents
1120	Trade Receivables
1122	Allowance for Doubtful Accounts
1210	Property, Plant and Equipment
1211	Accumulated Depreciation
2110	Accounts Payable
2120	Short-term Debt
2210	Long-term Debt
3100	Stockholders Equity
3200	Retained Earnings
4110	Interest Income
5110	Interest Expense
5160	Provision for Credit Losses

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IFRS Compliance

Classification Mapping

Account	IFRS Classification
1110	Cash and Cash Equivalents
1120	Trade Receivables
1122	Impairment of Receivables
1210	Property, Plant and Equipment
1211	Accumulated Depreciation
2110	Trade Payables
2120	Financial Liabilities
2210	Financial Liabilities
3100	Share Capital
3200	Retained Earnings
3300	Reserves
4110	Interest Income
5110	Finance Costs
5160	Expected Credit Losses

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Key Features

✅ Implemented

1. Hierarchical Structure

   • Parent-child relationships
   • Multi-level account hierarchy
   • Tree navigation support

2. Dual Standard Support

   • USGAAP classifications
   • IFRS classifications
   • Both standards supported simultaneously

3. Account Coding

   • 4-digit account codes
   • Logical numbering system
   • Extensible structure

4. Normal Balance Tracking

   • DEBIT accounts (Assets, Expenses)
   • CREDIT accounts (Liabilities, Equity, Revenue)
   • Automatic validation

5. System Accounts

   • Pre-defined system accounts
   • Custom account creation
   • Active/inactive status

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Deployment

Step 1: Add Prisma Model

The ChartOfAccount model has been added to the Prisma schema.

Step 2: Run Migration

cd dbis_core
npx prisma migrate dev --name add_chart_of_accounts

Or manually run the SQL migration:

psql -d dbis_core -f prisma/migrations/add_chart_of_accounts.sql

Step 3: Initialize Chart of Accounts

import { chartOfAccountsService } from '@/core/accounting/chart-of-accounts.service';

// Initialize standard accounts
await chartOfAccountsService.initializeChartOfAccounts();

Or via API:

POST /api/accounting/chart-of-accounts/initialize

Step 4: Verify

// Get all accounts
const accounts = await chartOfAccountsService.getChartOfAccounts();

// Get by category
const assets = await chartOfAccountsService.getAccountsByCategory(AccountCategory.ASSET);

// Get hierarchy
const assetHierarchy = await chartOfAccountsService.getAccountHierarchy('1000');

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API Endpoints

Method	Endpoint	Description
GET	/api/accounting/chart-of-accounts	Get all accounts
POST	/api/accounting/chart-of-accounts/initialize	Initialize standard accounts
GET	/api/accounting/chart-of-accounts/:accountCode	Get account by code
GET	/api/accounting/chart-of-accounts/category/:category	Get by category
GET	/api/accounting/chart-of-accounts/:parentCode/children	Get child accounts
GET	/api/accounting/chart-of-accounts/:rootCode/hierarchy	Get account hierarchy
POST	/api/accounting/chart-of-accounts	Create new account
PUT	/api/accounting/chart-of-accounts/:accountCode	Update account
GET	/api/accounting/chart-of-accounts/:accountCode/balance	Get account balance

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Account Examples

Assets

{
  accountCode: '1110',
  accountName: 'Cash and Cash Equivalents',
  category: 'ASSET',
  normalBalance: 'DEBIT',
  usgaapClassification: 'Cash and Cash Equivalents',
  ifrsClassification: 'Cash and Cash Equivalents',
  level: 3
}

Liabilities

{
  accountCode: '2140',
  accountName: 'CBDC Liabilities',
  category: 'LIABILITY',
  normalBalance: 'CREDIT',
  usgaapClassification: 'Digital Currency Liabilities',
  ifrsClassification: 'Financial Liabilities',
  level: 3
}

Revenue

{
  accountCode: '4110',
  accountName: 'Interest Income',
  category: 'REVENUE',
  normalBalance: 'CREDIT',
  usgaapClassification: 'Interest Income',
  ifrsClassification: 'Interest Income',
  level: 3
}

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Integration with Ledger

The Chart of Accounts integrates with the existing ledger system:

// Post entry using chart of accounts
await ledgerService.postDoubleEntry(
  ledgerId,
  '1112', // Cash in Banks (from chart of accounts)
  '4110', // Interest Income (from chart of accounts)
  amount,
  currencyCode,
  assetType,
  transactionType,
  referenceId
);

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Compliance Features

USGAAP Features

• ✅ Standard account classifications
• ✅ Depreciation methods
• ✅ Allowance for doubtful accounts
• ✅ Provision for credit losses
• ✅ Stockholders equity structure

IFRS Features

• ✅ IFRS-compliant classifications
• ✅ Revaluation reserves
• ✅ Expected credit losses (IFRS 9)
• ✅ Share capital structure
• ✅ Comprehensive income tracking

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Files Created

1. ✅ src/core/accounting/chart-of-accounts.service.ts - Service implementation
2. ✅ src/core/accounting/chart-of-accounts.routes.ts - API routes
3. ✅ prisma/migrations/add_chart_of_accounts.sql - Database migration
4. ✅ Prisma schema updated with ChartOfAccount model

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Next Steps

1. Run Migration:

   npx prisma migrate dev --name add_chart_of_accounts
   

2. Initialize Accounts:

   # Via API or service
   POST /api/accounting/chart-of-accounts/initialize
   

3. Link to Ledger:

   • Update ledger service to use chart of accounts
   • Map bank accounts to chart of accounts codes
   • Generate financial statements using chart of accounts

4. Generate Reports:

   • Balance Sheet (Assets = Liabilities + Equity)
   • Income Statement (Revenue - Expenses = Net Income)
   • Statement of Cash Flows
   • Statement of Changes in Equity

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Status

✅ Chart of Accounts is deployable and ready for use!

The system includes:

• ✅ Complete account structure
• ✅ USGAAP compliance
• ✅ IFRS compliance
• ✅ Hierarchical organization
• ✅ API endpoints
• ✅ Database schema
• ✅ Service implementation

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Ready for deployment and integration with the General Ledger system.