erpsaas/config/chart-of-accounts.php

<?php

return [
    'default' => [
        'current_asset' => [
            'Cash and Cash Equivalents' => [
                'description' => 'The most liquid assets a company holds. This includes physical currency, bank balances, and short-term investments a company can quickly convert to cash.',
                'multi_currency' => true,
                'base_code' => '1000',
                'bank_account_type' => 'depository',
                'accounts' => [
                    'Cash on Hand' => [
                        'description' => 'The amount of money held by the company in the form of cash.',
                    ],
                ],
            ],
            'Receivables' => [
                'description' => 'Amounts owed to the company for goods sold or services rendered, including accounts receivable, notes receivable, and other receivables.',
                'multi_currency' => false,
                'base_code' => '1100',
                'accounts' => [
                    'Accounts Receivable' => [
                        'description' => 'The amount of money owed to the company by customers who have not yet paid for goods or services received.',
                    ],
                ],
            ],
            'Inventory' => [
                'description' => 'The raw materials, work-in-progress goods and completely finished goods that are considered to be the portion of a business\'s assets that are ready or will be ready for sale.',
                'multi_currency' => true,
                'base_code' => '1200',
            ],
            'Prepaid and Deferred Charges' => [
                'description' => 'Payments made in advance for future goods or services, such as insurance premiums, rent, and prepaid taxes.',
                'multi_currency' => false,
                'base_code' => '1300',
            ],
            'Other Current Assets' => [
                'description' => 'Other assets that are expected to be converted to cash, sold, or consumed within one year or the business\'s operating cycle.',
                'multi_currency' => true,
                'base_code' => '1400',
            ],
        ],
        'non_current_asset' => [
            'Long-Term Investments' => [
                'description' => 'Investments in securities like bonds and stocks, investments in other companies, or real estate held for more than one year, aiming for long-term benefits.',
                'multi_currency' => true,
                'base_code' => '1500',
            ],
            'Fixed Assets' => [
                'description' => 'Physical, tangible assets used in the business\'s operations with a useful life exceeding one year, such as buildings, machinery, and vehicles. These assets are subject to depreciation.',
                'multi_currency' => false,
                'base_code' => '1600',
            ],
            'Intangible Assets' => [
                'description' => 'Assets lacking physical substance but offering value to the business, like patents, copyrights, trademarks, software, and goodwill.',
                'multi_currency' => false,
                'base_code' => '1700',
            ],
            'Other Non-Current Assets' => [
                'description' => 'Includes long-term assets not classified in the above categories, such as long-term prepaid expenses, deferred tax assets, and loans made to other entities that are not expected to be settled within the next year.',
                'multi_currency' => true,
                'base_code' => '1800',
            ],
        ],
        'contra_asset' => [
            'Depreciation and Amortization' => [
                'description' => 'Accounts that accumulate depreciation of tangible assets and amortization of intangible assets, reflecting the reduction in value over time.',
                'multi_currency' => false,
                'base_code' => '1900',
            ],
            'Allowances for Receivables' => [
                'description' => 'Accounts representing estimated uncollectible receivables, used to adjust the value of gross receivables to a realistic collectible amount.',
                'multi_currency' => false,
                'base_code' => '1940',
            ],
            'Valuation Adjustments' => [
                'description' => 'Accounts used to record adjustments in asset values due to impairments, market changes, or other factors affecting their recoverable amount.',
                'multi_currency' => false,
                'base_code' => '1950',
            ],
        ],
        'current_liability' => [
            'Supplier Obligations' => [
                'description' => 'Liabilities arising from purchases of goods or services from suppliers, not yet paid for. This can include individual accounts payable and trade credits.',
                'multi_currency' => true,
                'base_code' => '2000',
                'accounts' => [
                    'Accounts Payable' => [
                        'description' => 'The amount of money owed by the company to suppliers for goods or services received.',
                    ],
                ],
            ],
            'Accrued Expenses and Liabilities' => [
                'description' => 'Expenses that have been incurred but not yet paid, including wages, utilities, interest, and taxes. This category can house various accrued expense accounts.',
                'multi_currency' => false,
                'base_code' => '2100',
                'accounts' => [
                    'Sales Tax Payable' => [
                        'description' => 'The amount of money owed to the government for sales tax collected from customers.',
                    ],
                ],
            ],
            'Short-Term Borrowings' => [
                'description' => 'Debt obligations due within the next year, such as bank loans, lines of credit, and short-term notes. This category can cover multiple short-term debt accounts.',
                'multi_currency' => true,
                'base_code' => '2200',
            ],
            'Customer Deposits and Advances' => [
                'description' => 'Funds received in advance for goods or services to be provided in the future, including customer deposits and prepayments.',
                'multi_currency' => true,
                'base_code' => '2300',
            ],
            'Other Current Liabilities' => [
                'description' => 'A grouping for miscellaneous short-term liabilities not covered in other categories, like the current portion of long-term debts, short-term provisions, and other similar obligations.',
                'multi_currency' => true,
                'base_code' => '2400',
            ],
        ],
        'non_current_liability' => [
            'Long-Term Borrowings' => [
                'description' => 'Obligations such as bonds, mortgages, and loans with a maturity of more than one year, covering various types of long-term debt instruments.',
                'multi_currency' => true,
                'base_code' => '2500',
            ],
            'Deferred Tax Liabilities' => [
                'description' => 'Taxes incurred in the current period but payable in a future period, typically due to differences in accounting methods between tax reporting and financial reporting.',
                'multi_currency' => false,
                'base_code' => '2600',
            ],
            'Other Long-Term Liabilities' => [
                'description' => 'Liabilities not due within the next year and not classified as long-term debt or deferred taxes, including pension liabilities, lease obligations, and long-term provisions.',
                'multi_currency' => true,
                'base_code' => '2700',
            ],
        ],
        'contra_liability' => [
            'Accumulated Amortization of Debt Discount' => [
                'description' => 'Accumulated amount representing the reduction of bond or loan liabilities, reflecting the difference between the face value and the discounted issuance price over time.',
                'multi_currency' => false,
                'base_code' => '2900',
            ],
            'Valuation Adjustments for Liabilities' => [
                'description' => 'Adjustments made to the recorded value of liabilities, such as changes in fair value of derivative liabilities or adjustments for hedging activities.',
                'multi_currency' => false,
                'base_code' => '2950',
            ],
        ],
        'equity' => [
            'Contributed Capital' => [
                'description' => 'Funds provided by owners or shareholders for starting the business and subsequent capital injections. Reflects the financial commitment of the owner(s) or shareholders to the business.',
                'multi_currency' => true,
                'base_code' => '3000',
                'accounts' => [
                    'Owner\'s Investment' => [
                        'description' => 'The amount of money invested by the owner(s) or shareholders to start or expand the business.',
                    ],
                    'Owner\'s Drawings' => [
                        'description' => 'The amount of money withdrawn by the owner(s) or shareholders from the business for personal use.',
                    ],
                ],
            ],
            'Retained Earnings: Profit' => [
                'description' => 'Cumulative profits retained in the business and not distributed as dividends. Indicates the company\'s financial health and profit-generating ability.',
                'multi_currency' => false,
                'base_code' => '3100',
                'accounts' => [
                    'Owner\'s Equity' => [
                        'description' => 'Owner\'s equity is what remains after you subtract business liabilities from business assets. In other words, it\'s what\'s left over for you if you sell all your assets and pay all your debts.',
                    ],
                ],
            ],
        ],
        'contra_equity' => [
            'Contra Equity' => [
                'description' => 'Equity that is deducted from gross equity to arrive at net equity. This includes treasury stock, which is stock that has been repurchased by the company.',
                'multi_currency' => false,
                'base_code' => '3900',
            ],
        ],
        'operating_revenue' => [
            'Product Sales' => [
                'description' => 'Income from selling physical or digital products. Includes revenue from all product lines or categories.',
                'multi_currency' => false,
                'base_code' => '4000',
                'accounts' => [
                    'Product Sales' => [
                        'description' => 'The amount of money earned from selling physical or digital products.',
                    ],
                ],
            ],
            'Service Revenue' => [
                'description' => 'Income earned from providing services, encompassing activities like consulting, maintenance, and repair services.',
                'multi_currency' => false,
                'base_code' => '4100',
            ],
            'Other Operating Revenue' => [
                'description' => 'Income from other business operations not classified as product sales or services, such as rental income, royalties, or income from licensing agreements.',
                'multi_currency' => false,
                'base_code' => '4200',
            ],
        ],
        'non_operating_revenue' => [
            'Investment Income' => [
                'description' => 'Earnings from investments, including dividends, interest from securities, and profits from real estate investments.',
                'multi_currency' => false,
                'base_code' => '4500',
                'accounts' => [
                    'Dividends' => [
                        'description' => 'The amount of money received from investments in shares of other companies.',
                    ],
                    'Interest Earned' => [
                        'description' => 'The amount of money earned from interest-bearing investments like bonds, certificates of deposit, or savings accounts.',
                    ],
                ],
            ],
            'Gains from Asset Disposition' => [
                'description' => 'Profits from selling assets like property, equipment, or investments, excluding regular sales of inventory.',
                'multi_currency' => false,
                'base_code' => '4600',
            ],
            'Other Non-Operating Revenue' => [
                'description' => 'Income from sources not related to the main business activities, such as legal settlements, insurance recoveries, or gains from foreign exchange transactions.',
                'multi_currency' => false,
                'base_code' => '4700',
                'accounts' => [
                    'Gain on Foreign Exchange' => [
                        'description' => 'The amount of money earned from foreign exchange transactions due to favorable exchange rate changes.',
                    ],
                ],
            ],
        ],
        'contra_revenue' => [
            'Contra Revenue' => [
                'description' => 'Revenue that is deducted from gross revenue to arrive at net revenue. This includes sales discounts, returns, and allowances.',
                'multi_currency' => false,
                'base_code' => '4900',
                'accounts' => [
                    'Sales Returns and Allowances' => [
                        'description' => 'The amount of money returned to customers or deducted from sales due to returned goods or allowances granted.',
                    ],
                    'Sales Discounts' => [
                        'description' => 'The amount of money deducted from sales due to discounts offered to customers for early payment or other reasons.',
                    ],
                ],
            ],
        ],
        'uncategorized_revenue' => [
            'Uncategorized Revenue' => [
                'description' => 'Revenue that has not been categorized into other revenue categories.',
                'multi_currency' => false,
                'base_code' => '4950',
                'accounts' => [
                    'Uncategorized Income' => [
                        'description' => 'Revenue from other business operations that don\'t fall under regular sales or services. This account is used as the default for all new transactions.',
                    ],
                ],
            ],
        ],
        'operating_expense' => [
            'Cost of Goods Sold' => [
                'description' => 'Direct costs attributable to the production of goods sold by a company. This includes material costs and direct labor.',
                'multi_currency' => false,
                'base_code' => '5000',
            ],
            'Payroll and Employee Benefits' => [
                'description' => 'Expenses related to employee compensation, including salaries, wages, bonuses, commissions, and payroll taxes.',
                'multi_currency' => false,
                'base_code' => '5050',
                'accounts' => [
                    'Salaries and Wages' => [
                        'description' => 'The amount of money paid to employees for their work, including regular salaries and hourly wages.',
                    ],
                    'Payroll Employer Taxes and Contributions' => [
                        'description' => 'The amount of money paid by the employer for payroll taxes and contributions, such as social security, unemployment, and workers\' compensation.',
                    ],
                    'Employee Benefits' => [
                        'description' => 'The amount of money spent on employee benefits, such as health insurance, retirement plans, and other benefits.',
                    ],
                    'Payroll Processing Fees' => [
                        'description' => 'The amount of money paid to third-party payroll processors for payroll services.',
                    ],
                ],
            ],
            'Facility Expenses' => [
                'description' => 'Costs incurred for business premises, including rent or lease payments, property taxes, utilities, and building maintenance.',
                'multi_currency' => false,
                'base_code' => '5100',
                'accounts' => [
                    'Rent or Lease Payments' => [
                        'description' => 'The amount of money paid for renting or leasing business premises.',
                    ],
                    'Property Taxes' => [
                        'description' => 'The amount of money paid for taxes on business property.',
                    ],
                    'Building Maintenance' => [
                        'description' => 'The amount of money spent on maintaining business premises, including repairs and cleaning.',
                    ],
                    'Utilities' => [
                        'description' => 'The amount of money paid for business utilities, such as electricity, water, and gas.',
                    ],
                    'Property Insurance' => [
                        'description' => 'The amount of money paid for insurance on business property.',
                    ],
                ],
            ],
            'General and Administrative' => [
                'description' => 'Expenses related to general business operations, such as office supplies, insurance, and professional fees.',
                'multi_currency' => false,
                'base_code' => '5150',
                'accounts' => [
                    'Food and Drink' => [
                        'description' => 'The amount of money spent on food and drink for business purposes, such as office snacks, meals, and catering.',
                    ],
                    'Transportation' => [
                        'description' => 'The amount of money spent on business transportation, such as fuel, vehicle maintenance, and public transportation.',
                    ],
                    'Travel' => [
                        'description' => 'The amount of money spent on business travel, such as airfare, hotels, and rental cars.',
                    ],
                    'Entertainment' => [
                        'description' => 'The amount of money spent on business entertainment, such as client dinners, events, and tickets.',
                    ],
                    'Office Supplies' => [
                        'description' => 'The amount of money spent on office supplies, such as paper, ink, and stationery.',
                    ],
                    'Office Equipment and Furniture' => [
                        'description' => 'The amount of money spent on office equipment and furniture, such as computers, printers, and desks.',
                    ],
                    'Legal and Professional Fees' => [
                        'description' => 'The amount of money paid for legal and professional services, such as legal advice, accounting, and consulting.',
                    ],
                    'Software and Subscriptions' => [
                        'description' => 'The amount of money spent on software and subscriptions, such as SaaS products, cloud services, and digital tools.',
                    ],
                ],
            ],
            'Marketing and Advertising' => [
                'description' => 'Expenses related to marketing and advertising activities, such as advertising campaigns, promotional events, and marketing materials.',
                'multi_currency' => false,
                'base_code' => '5200',
                'accounts' => [
                    'Advertising' => [
                        'description' => 'The amount of money spent on advertising campaigns, including print, digital, and outdoor advertising.',
                    ],
                    'Marketing' => [
                        'description' => 'The amount of money spent on marketing activities, such as content creation, social media, and email marketing.',
                    ],
                ],
            ],
            'Research and Development' => [
                'description' => 'Expenses incurred in the process of researching and developing new products or services.',
                'multi_currency' => false,
                'base_code' => '5250',
            ],
            'Other Operating Expenses' => [
                'description' => 'Miscellaneous expenses not categorized elsewhere, such as research and development costs, legal fees, and other irregular expenses.',
                'multi_currency' => false,
                'base_code' => '5300',
            ],
        ],
        'non_operating_expense' => [
            'Interest and Financing Costs' => [
                'description' => 'Expenses related to borrowing and financing, such as interest payments on loans, bonds, and credit lines.',
                'multi_currency' => false,
                'base_code' => '5500',
            ],
            'Tax Expenses' => [
                'description' => 'Various taxes incurred by the business, including income tax, sales tax, property tax, and payroll tax.',
                'multi_currency' => false,
                'base_code' => '5600',
            ],
            'Other Non-Operating Expense' => [
                'description' => 'Expenses not related to primary business activities, like losses from asset disposals, legal settlements, restructuring costs, or foreign exchange losses.',
                'multi_currency' => false,
                'base_code' => '5700',
                'accounts' => [
                    'Loss on Foreign Exchange' => [
                        'description' => 'The amount of money lost from foreign exchange transactions due to unfavorable exchange rate changes.',
                    ],
                ],
            ],
        ],
        'contra_expense' => [
            'Contra Expenses' => [
                'description' => 'Expenses that are deducted from gross expenses to arrive at net expenses. This includes purchase discounts, returns, and allowances.',
                'multi_currency' => false,
                'base_code' => '5900',
                'accounts' => [
                    'Purchase Returns and Allowances' => [
                        'description' => 'The amount of money returned to suppliers or deducted from purchases due to returned goods or allowances granted.',
                    ],
                    'Purchase Discounts' => [
                        'description' => 'The amount of money deducted from purchases due to discounts offered by suppliers for early payment or other reasons.',
                    ],
                ],
            ],
        ],
        'uncategorized_expense' => [
            'Uncategorized Expense' => [
                'description' => 'Expenses that have not been categorized into other expense categories.',
                'multi_currency' => false,
                'base_code' => '5950',
                'accounts' => [
                    'Uncategorized Expense' => [
                        'description' => 'Expenses not classified into regular expense categories. This account is used as the default for all new transactions.',
                    ],
                ],
            ],
        ],
    ],
];