Account Module in Aorabook
In the modern corporate landscape, the Accounts Module isn’t just a digital ledger; it’s the financial heartbeat of your organization. It transforms raw data into strategic intelligence, ensuring that every cent is accounted for and every fiscal decision is backed by solid evidence.
Think of this module as your "Single Source of Truth." Because it connects directly with sales, purchasing, inventory, and HR, it reduces manual work and avoids errors. Instead of scattered data and confusion, you get a clear and reliable view of your company’s financial position at any time.
This tutorial explains the Account Module step by step using a business scenario, ending with the exact reports typically reviewed and approved.
Business Scenario:
Business name: Apex Furniture
Transactions:
The founder, Sarah, invests $50,000 to start the business. (ABC Bank)
She also brings in $9,000 worth of 90 chairs (Opening Stock).
Apex buys 10 tables from supplier Devid on credit. & 30 chairs from the supplier John paid from ABC bank. (Per Table price $500, Per Chair $100)
Apex sells 50 chairs to Tech Hub for $15,000. And 3 tables $6,000. (per chair 300, Per table, 2000)
The customer pays $16,000 upfront and keeps $5,000 on credit.
Again, sells 40 chairs to Mr. Williams for $12,000. And 3 tables $6,000 on credit.
At the end of the month, Apex pays supplier Devid the $3,000 they owed.
Salesman's salary: $500; Office Expenses: $100.
Pay $2,000 monthly showroom rent.
Here, 5% VAT on all purchases & Sales transactions.
Step 1. Initial Setup
Company Configuration
(Sidebar > Settings)
Chart of Account Creation
(Sidebar > account > chart of account)
VAT Settings
(Sidebar > settings > GST/TAX/VAT)
Customer & Supplier Account
(sidebar > contact > Add new)
Add Products
(sidebar > product > Add product)
Step 2. Business Set up (Capital & Opening)
System Entry (Capital): The Accountant records a Journal Voucher.
***Availability to make an opening balance when creating charts of accounts. System journal transaction will be the same.**
Debit: Bank Account ($50,000)
Credit: Founder’s Equity ($50,000)
Navigate to:
Dashboard > Add new button > New Journal
Sidebar > Account > Journal > Journal > Add new Journal
System Entry (Opening Stock): Recorded via an Opening Stock Entry.
Debit: Inventory Asset (Chair) ($9,000)
Credit: Opening Balance Equity / Capital Acc ($9,000)
Navigate to:
Sidebar > Inventory > Add opening stock > Select product&Warehouse > Quantity
The Journal of Opening Stock:
Inventory Ledger:
Step 3. Operations (Purchase)
Apex buys $5,000 worth of 10 tables from supplier Devid on credit.
3000 worth of 30 chairs from supplier John on cash.
The Purchase (On Credit):
Debit: Inventory $5,000
Debit: Purchase VAT $250
Credit: Accounts Payable (Devid) $5,250
Navigate to:
Sidebar > Purchase > New Order
Journal:
The Purchase (On Cash):
Debit: Inventory $3000
Debit: Purchase VAT $150
Credit: ABC Bank (John) $3150
Journal:
Receive Purchase Order:
Navigate to:
Sidebar > Inventory > Receive purchase order
Click on action button & add to stock.
The Impact: The system tracks that inventory increases, we owe the supplier (Liability) increases, and that our Bank has decreased.
Step 4. The Big Win (Sales & Income)
Apex sells 50 chairs to Tech Hub for $15,000. And 3 tables $6,000.
The customer pays $16,000 upfront and keeps $5,000 on credit.
The Sales Invoice:
Navigate to:
Sidebar > Sales > New Sales
Debit: ABC Bank ($16,000)
Debit: Accounts Receivable ($5,000)
Credit: Sales Income ($21,000)
Journal:
COGS:
Again, Apex sells 40 chairs to Mr. Williams for $12,000. And 3 tables $6,000 on credit.
Journal:
COGS:
The Automatic Inventory Update: The ERP automatically recognizes the COGS (Cost of Goods Sold).
Debit: COGS ($12262.50)
Credit: Inventory ($12262.50)
The Result: The system shows a Gross Profit of ($26737.50).
Here Sales,
Tech HUB $21000
Mr. Williams $18000
Total Sales $39000
Less, COGS $12262.50
Step 5. Paying Supplier & Expenses
At the end of the month, Apex pays supplier Devid the $3,000 from $5000 they owed.
Salesman's salary: $500; Office Expenses: $100.
Pay $2,000 monthly showroom rent.
Navigate to:
Sidebar > Contact > Supplier > Supplier profile > Bill Payment
Or,
Dashboard > Add new > Journal
Supplier bill payment:
Debit: Account Payable (Mr. Devid) ($3,000)
Credit: ABC Bank ($3,000)
Salesman’s Salary:
Navigate to:
Sidebar > Human Resource > Payroll > Generate Payroll > Payment
Or,
Dashboard > Add New > Journal
Debit: Employee salaries (salesman) ($500)
Credit: ABC Bank ($500)
Office Expense:
Debit: Office Expense ($100)
Debit: Rent expense (2000)
Credit: ABC Bank ($2100)
The Result: The liability decreases and our Bank account has decreased due to payments and expenses.
Step 6. Accounts Payable & Receivable
Navigate to
Sidebar > Account > Account Receivable / Payable
Here, our accounts payable to supplier Devid is $2250
Total account Receivable is $24950
Step 7. Contra entry:
Navigate to:
Sidebar > Account > Contra > Add new contra
Transfer $10000 to ABC Bank from Cash in main branch
Financial Reports
After completing operations, the system automatically generates structured reports.
Profit & Loss/Income Statement:
Here, net profit is ($24137.50)
Trial Balance Report:
Cash & Cash Equivalent Report
Bank Reconciliation:
Account Receivable & Payable Ledger report:
Balance Sheet
Income & Expense Report
Expense Report
VAT Report
Here, Purchase VAT shows in debit column, Sales VAT shows in credit column.
VAT liability is,
Purchase VAT - Sales VAT
So the balance is $1550.
