OFBiz General Ledger Setup

Last Update 20230813

I was doing product setup first but found I needed some GL accounts in order to test some sales orders and invoices.

OFBiz requires the use of a master General Ledger Account list. The accounts are then assigned to individual business units also called Internal Organizations. I would guess the last thing you want is to try and consolidate business units financial statements and they all have there own number sequence.

To add new accounts you goto:

Accounting - Global GL Settings - Navigate Accounts - Edit GL Account

Fill in the Fields

Click Add

The problem with this method is there is no way to enter the glAccountId manually through the user interface. So when you go to lookup an account it shows some bogus number and not the real GL account number. It's very confusing. The OFBiz folks say to create custom seed data or hugely modify the demo data. That's great for a large implementation, but for some smaller company it is far easier to just use the Web Tools method and manually add the GL account.

In my opinion I would add the account first via Web Tools and then clean up. I also advise you create an XML import file. This will simplify the process of importing the info each time you blow out the system and start from scratch.

Click on Web Tools - Entity Data Maintenance - G - GlAccount

Click on Create New

Add Top Level Accounts - GlAccountId, accountCode, accountName

1000, 1000, Assets - Click Create

2000, 2000, Liabilities - Click Create

3000, 3000, Owners Equity and Net Worth - Click Create

4000, 4000, Sales - Click Create

5000, 5,000, Cost of Goods Sold - Click Create

6000, 6000, Expenses - Click Create

7000, 7000, Other Expenses - Click Create

8000, 8000, Other Income- Click Create

8200, 8200, Other Expenses - Click Create

8500, 8500, Net Income - Click Create

9000, 9000, Income Tax - Click Create

(Now Update all Accounts with Proper Info)

Select Accounting - Global GL Settings

Then Enter Gl Account Type, GL Account Class Id, Gl Resource Type Id, Account Code, Account Name

Not Applicable, Asset, Money, 1000, Assets - Click Add

Not Applicable, Liability, Money, 2000, Liabilities - Click Add

Not Applicable, Equity, Money, 3000, Owners Equity and Net Worth - Click Add

Not Applicable, Revenue, Money, 4000, Sales - Click Add

Not Applicable, Cost of Goods Sold, Money, 5000, Cost of Goods Sold - Click Add

Not Applicable, Expense, Money, 6000, Expenses - Click Add

Not Applicable, Selling, General, and Administrative Expense, Money, 7000, Other Expenses - Click Add

Not Applicable, Income, Money, 8000, Other Income- Click Add

Not Applicable, Cash Expense, Money, 8200, Other Expenses - Click Add

Profit Loss, Debit, Money, 8500, Net Income - Click Add

Not Applicable, Non-Posting, Money, 9000, Income Tax - Click Add

Create Sub-level GL Accounts for the top level accounts in the prior step. For instance you might create 4100 General Sales and a 4200 for Discounts on Sales. You will need a working group for all the accounts listed below.

Assets - Petty Cash, Checking, Accounts Receivable, Inventory, Security Deposits

Liabilities - Accounts Payable, Credit Card, Sales Tax Liabilities, Direct Deposit Clearing, Payroll

Equity - Draws, Owners Equity, Opening Balance

Revenue - Sales Revenues, Shipping,

Cost of Goods Sold -Cost of Goods Sold, Labor, Freight & Shipping, Merchant Account Fees,

Expenses - Advertising, Automotive, Bank Charges, Computers, Dues & Subscriptions, Education & Training, Gifts, Human Resources, Insurance, Interest Expense, Meals & Entertainment, Miscellaneous, Office Supplies, G&A Payroll, Professional Fees, Rent, Repairs & Maintenance, Telephone, Travel, Utilities,

Advanced Tip

Import data with the Web Tools as detailed in OFBiz Facility Setup.

Setup minimum Chart of Accounts.

<entity-engine-xml><GlAccount glAccountId="1000" glAccountTypeId="CURRENT_ASSET" glAccountClassId="CASH_EQUIVALENT" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="1000" accountName="ASSETS" /><GlAccount glAccountId="1100" glAccountTypeId="CURRENT_ASSET" glAccountClassId="CASH_EQUIVALENT" glResourceTypeId="MONEY" parentGlAccountId="1000" accountCode="1100" accountName="General Checking Account" /><GlAccount glAccountId="1200" glAccountTypeId="CURRENT_ASSET" glAccountClassId="CASH_EQUIVALENT" glResourceTypeId="MONEY" parentGlAccountId="1000" accountCode="1200" accountName="Undeposited Receipts" /><GlAccount glAccountId="1500" glAccountTypeId="ACCOUNTS_RECEIVABLE" glAccountClassId="CURRENT_ASSET" glResourceTypeId="MONEY" parentGlAccountId="1000" accountCode="1500" accountName="Accounts Receivable - Trade" /><GlAccount glAccountId="1600" glAccountTypeId="INVENTORY_ACCOUNT" glAccountClassId="INVENTORY_ASSET" glResourceTypeId="MONEY" parentGlAccountId="1000" accountCode="1600" accountName="INVENTORY" /><GlAccount glAccountId="2000" glAccountTypeId="CURRENT_LIABILITY" glAccountClassId="LIABILITY" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="2000" accountName="LIABILITIES" /><GlAccount glAccountId="2100" glAccountTypeId="ACCOUNTS_PAYABLE" glAccountClassId="CURRENT_LIABILITY" glResourceTypeId="MONEY" parentGlAccountId="2000" accountCode="2100" accountName="Accounts Payable" /><GlAccount glAccountId="2400" glAccountTypeId="CURRENT_LIABILITY" glAccountClassId="CURRENT_LIABILITY" glResourceTypeId="MONEY" parentGlAccountId="2000" accountCode="2400" accountName="Sales Taxes Collected" /><GlAccount glAccountId="3000" glAccountTypeId="" glAccountClassId="EQUITY" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="3000" accountName="OWNERS EQUITY and NET WORTH" /><GlAccount glAccountId="3500" glAccountTypeId="OWNERS_EQUITY" glAccountClassId="RETAINED_EARNINGS" glResourceTypeId="MONEY" parentGlAccountId="3000" accountCode="3500" accountName="Retained Earnings" /><GlAccount glAccountId="3999" glAccountTypeId="OWNERS_EQUITY" glAccountClassId="EQUITY" glResourceTypeId="MONEY" parentGlAccountId="3000" accountCode="3999" accountName="Suspense" /><GlAccount glAccountId="4000" glAccountTypeId="" glAccountClassId="REVENUE" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="4000" accountName="SALES" /><GlAccount glAccountId="4100" glAccountTypeId="" glAccountClassId="REVENUE" glResourceTypeId="MONEY" parentGlAccountId="4000" accountCode="4100" accountName="General Sales" /><GlAccount glAccountId="4200" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="4000" accountCode="4200" accountName="Discounts on Sales" /><GlAccount glAccountId="5000" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="5000" accountName="COST OF GOODS SOLD" /><GlAccount glAccountId="5100" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="5000" accountCode="5100" accountName="Wages" /><GlAccount glAccountId="5300" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="5000" accountCode="5300" accountName="Raw Material Purchases" /><GlAccount glAccountId="5500" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="5000" accountCode="5500" accountName="Merchant Account Fees" /><GlAccount glAccountId="5700" glAccountTypeId="" glAccountClassId="COGS_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="5000" accountCode="5700" accountName="Freight-In" /><GlAccount glAccountId="6000" glAccountTypeId="" glAccountClassId="EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="" accountCode="6000" accountName="EXPENSES" /><GlAccount glAccountId="6100" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6100" accountName="Advertising and Promotions" /><GlAccount glAccountId="6200" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6200" accountName="Bank Service Charges" /><GlAccount glAccountId="6300" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6300" accountName="Business Licenses and Permits" /><GlAccount glAccountId="6400" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6400" accountName="Data Processing Expenses" /><GlAccount glAccountId="6500" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6500" accountName="Dues and Subscriptions" /><GlAccount glAccountId="6600" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6600" accountName="Education and Training" /><GlAccount glAccountId="6700" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6700" accountName="Human Resources Expense" /><GlAccount glAccountId="6800" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6800" accountName="INSURANCE EXPENSE" /><GlAccount glAccountId="6810" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6800" accountCode="6810" accountName="General Liability Insurance" /><GlAccount glAccountId="6820" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6800" accountCode="6820" accountName="Workmans Comp Insurance" /><GlAccount glAccountId="6900" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="6900" accountName="Interest Expense" /><GlAccount glAccountId="7000" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7000" accountName="Meals and Entertainment" /><GlAccount glAccountId="7100" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7100" accountName="Office Supplies" /><GlAccount glAccountId="7200" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7200" accountName="Postage and Delivery" /><GlAccount glAccountId="7300" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7300" accountName="Professional Fees" /><GlAccount glAccountId="7400" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7400" accountName="Rent Expense" /><GlAccount glAccountId="7500" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7500" accountName="Repairs and Maintenance" /><GlAccount glAccountId="7700" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7700" accountName="Telephone" /><GlAccount glAccountId="7800" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7800" accountName="Travel" /><GlAccount glAccountId="7900" glAccountTypeId="" glAccountClassId="SGA_EXPENSE" glResourceTypeId="MONEY" parentGlAccountId="6000" accountCode="7900" accountName="Utilities" /></entity-engine-xml>

GL Account Class Id sets the hierarchy for reporting. I found a nice reference at HotWaxSystems - https://www.hotwaxsystems.com/ofbiz/ofbiz-tutorial-charts-of-accounts/

Check for 1150, Unapplied Payments - 1500, Inventory - 1800 Deposits - 2100, Customer Deposits

More Detailed Chart of Accounts.

<entity-engine-xml>

</entity-engine-xml>

Notes: My chart of accounts is a little different. I am a small company that is not currently running a perpetual inventory. So on my balance sheet I show $0.00 for inventory, raw materials, and finished goods. I am also a manufacturer but I record my labor and raw materials monthly as expense'd. So I want to see revenue's minus, cost of goods sold with labor each quarter. The purpose of going to OFBiz is so I can have a perpetual inventory, bill of materials for production runs, and work in process. Please setup your chart of accounts accordingly. I have mine here so all I have to do is a little cut and paste each time I have to blow out the database and start again.

Create assignments from Global Chart of Accounts to your Organization Chart of Accounts

Select Accounting

Select Global GL Settings

Select Assign GL Account

Select Gl Accout ID and Party ID combination

Click Create Assignment

Create assignments from Global GL Accounts to your Organization GL Accounts

<entity-engine-xml>

</entity-engine-xml>

Create New Accounting Company

Select Accounting

Select Organization GL Settings

Click Create new accounting company

Select Your Organization from the dropdown

Click Create new accounting company

Select Base Currency

Note: Error GL Journal ID - You will need to set that up in the next step and come back to this screen and select it.

Note: Refund Payment Method ID - You will need to set that up a little later and come back to this screen and select it.

Click Add

Note: Not setting a base currency will cause Unit of Measure UOM conversion errors if trying to receive inventory later.

Setup a GL Error Journal

Select Accounting

Select Organization GL Settings

Select Company Name Setup

Select Journals

Note: Since you can specify the glJournalId, I suggest you use the Web Tools in the next step or import the XML command below.

Select Web Tools

Select Entity Data Maintenance

Select GlJournal

Select Create New

Type RS_ERROR_JOURNAL

Type Suspense Transactions

Type 5000

Click Create

Setup Error Journal

<entity-engine-xml>

</entity-engine-xml>

Note: This is another way to assign Global GL Accounts to your company. We performed this step already so this is just informational.

Select Accounting

Select Organization GL Settings

Select Setup

Select Chart of Accounts

Start selecting each account you want to use

Click Create Assignment

Note: The quick way is to suck it in via the Web Tools

<entity-engine-xml>

</entity-engine-xml>

Assign GL Account Type Defaults to your company with partyId

Select Accounting

Select Organization GL Settings

Select Setup

Select GL Account Defaults

Start selecting each account you want to use

Click Save

Note: The quick way is to suck it in via the Web Tools

<entity-engine-xml>

</entity-engine-xml>

Setup for the GlAccountTypeDefault

<entity-engine-xml>

</entity-engine-xml>

Setup Time Periods for posting

Select Accounting

Select Organization GL Settings

Select Setup - Not Shown

Select Time Period

Select Fiscal Year

Type Period Number

Type Period Name

Select From Date - Watch the start time for the year

Select Through Date

Click Create

When complete it will look something like this.

Setup Time Periods

<entity-engine-xml>

</entity-engine-xml>

It took me several days to figure out the Refund Payment Method ID. I am still not sure what it does or how it works. It seems to me that is should be linked to a financial account. If you look at the Demo Data up on OFBiz you will see 3 Expire connections with no data. These were accounts added via SQL statements but no CheckAccount, EftAccount, CreditCard, FinAccount, or GiftCard account information was created. So therefore they do not display correctly here. I will probably come back to this section later.

So let's create the Refund Payment Method ID.

Select Party

Select Search - Not Shown

Select your Organization - Not Shown

Scroll to the bottom for Payment Method

Click on Add Checking Account

Type Account Name

Type Company Name on Account

Type Bank Name

Select Payment Method Type

Type Routing Number if Desired

Select Account Type

Type Account Number if Desired

Type Description

Select Billing (AP) Address

Click Save

Click Save/Done

Now go back to Accounting - Organization GL Settings - Setup

Select your Refund Payment Method ID

Click Update

<entity-engine-xml>

</entity-engine-xml>

STOP HERE - What follows are notes

Notes:

Trying to find Terms

Still looking for terms but found Financial Account Type

Select Accounting

Select Organization GL Settings

Select Setup

Select GL Account Defaults

Select FinAccount Type GL Account

Select Bank Account from dropdown

Select General Checking Account

Click Add

Create Bank / Checking Account

Select Accounting

Select Financial Account

Select New Financial Account

Select Bank Account for Fin Account Type

Type Your Bank Account Name

Type Account Number if desired

Type Pin Number if desired

Select Currency from Dropdown List

Select Organization Party ID - Typically the company.

Select Owner Party ID - This could be an individual

Select the GL Account Number associated with the bank account.

Click on Create

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