Chart of Accounts

Introduction

The Chart of Accounts (COA) is the backbone of the facility’s accounting system. It is a structured list of every financial account used to record transactions. Every journal entry, billing charge, and financial report draws from this list. Getting the COA right is foundational — changes later can be costly to reconcile.

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Key Concepts

Account Structure

Accounts in Aevora follow a hierarchical parent-child structure. A parent account (e.g., “Current Assets”) groups related child accounts (e.g., “Cash on Hand”, “Petty Cash Fund”, “Accounts Receivable — PhilHealth”).

This hierarchy is reflected in financial reports: parent accounts aggregate the balances of all their children, giving you rolled-up totals without manual calculation.

Account Types

Every account belongs to one of five types, which determine how it behaves on financial statements:

Type	Normal balance	Appears on	Description
Asset	Debit	Balance Sheet	Resources owned or controlled by the facility
Liability	Credit	Balance Sheet	Obligations owed to external parties
Equity	Credit	Balance Sheet	Owner’s or institution’s net interest
Revenue	Credit	Income Statement	Income earned from services and operations
Expense	Debit	Income Statement	Costs incurred in running the facility

If a transaction increases an account that has a debit normal balance, record it as a debit. If it increases a credit-normal account, record it as a credit. This is the foundation of double-entry bookkeeping — see Journal Entries for how this is applied in practice.

Account Code Conventions

Aevora does not enforce a specific numbering scheme, but the following convention is standard practice in Philippine health facilities and is strongly recommended:

Range	Type
1000–1999	Assets
2000–2999	Liabilities
3000–3999	Equity
4000–4999	Revenue
5000–5999	Expenses

Sub-accounts extend the parent code. For example:

• 1000 — Current Assets (parent)
• 1001 — Cash on Hand
• 1002 — Petty Cash Fund
• 1010 — Cash in Bank — BPI Operating
• 1100 — Accounts Receivable
• 1101 — Accounts Receivable — PhilHealth
• 1102 — Accounts Receivable — HMO

Use consistent spacing (e.g., always four-digit codes at the top level, five-digit for sub-accounts) so that reports sort and group correctly.

Cash Flow Fields

Two optional fields on every account feed the Cash Flow Statement:

• Cash flow code — groups the account into a section of the statement (Operating, Investing, or Financing Activities). Assign one to every account that drives cash movement: PhilHealth and HMO claim receivables, supplier payables, medicine and supply inventory, medical equipment, loans, depreciation. Codes are managed under Cash Flow Codes.
• Cash account — flags the account as actual cash (Cash on Hand, Petty Cash, bank accounts). Only asset accounts can be flagged. Cash-flagged accounts make up the statement’s Beginning and Ending Cash and never need a cash flow code — cash is what the statement explains, not one of its adjustments.

If the Cash Flow Statement shows Off by …, an account is usually missing one of these two settings — see the troubleshooting checklist.

Account Balances

The table shows a Balance for each account — its running ledger balance from posted journal entries only; drafts and voided entries don’t count. Balances follow each account’s normal side (see Account Types above): debit-normal accounts (assets, expenses) grow with debits, credit-normal accounts (liabilities, equity, revenue) grow with credits. An account with no posted activity shows ₱0.00.

Accounts that carry a cash flow code also roll their balances up into that code’s Balance on the Cash Flow Codes page.

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Use Cases

Setting Up a Starter Chart of Accounts

When a facility is first set up, create at minimum:

Assets (1000–1999)

Code	Account name
1000	Current Assets
1001	Cash on Hand
1002	Petty Cash Fund
1010	Cash in Bank — Operating
1011	Cash in Bank — Payroll
1100	Accounts Receivable
1101	AR — PhilHealth Claims
1102	AR — HMO Claims
1103	AR — Private Pay Patients
1200	Medical Supplies Inventory
1201	Pharmaceutical Inventory
1300	Prepaid Expenses
1500	Non-Current Assets
1510	Property and Equipment
1511	Accumulated Depreciation

Liabilities (2000–2999)

Code	Account name
2000	Current Liabilities
2001	Accounts Payable
2010	SSS Contributions Payable
2011	PhilHealth Contributions Payable
2012	Pag-IBIG Contributions Payable
2020	Withholding Tax Payable
2030	VAT Payable
2100	Accrued Expenses

Revenue (4000–4999)

Code	Account name
4000	Revenue
4001	OPD Consultation Fees
4002	IPD Room and Board
4003	Emergency Room Fees
4010	Laboratory Fees
4011	Radiology Fees
4020	Surgical Fees
4030	Pharmacy Revenue
4040	PhilHealth Reimbursements
4050	HMO Reimbursements

Adding an Account

1. Go to Finance → Chart of Accounts.
2. Click New Account.
3. Fill in the required fields:
   • Account code — follow your facility’s numbering convention
   • Account name — descriptive, consistent with your existing naming style
   • Account type — Asset, Liability, Equity, Revenue, or Expense
   • Parent account — select a parent to place this account in the hierarchy (leave blank for top-level)
4. Click Save.

The account is immediately available for use in journal entries and billing configuration.

Editing an Account

You can edit the name and parent of an account at any time. You cannot change an account’s type once it has been used in a journal entry — this would distort historical financial statements.

To change an account’s type, you must:

1. Ensure it has a zero balance and no open transactions.
2. Deactivate it.
3. Create a new account with the correct type.
4. Reclassify any historical transactions using a journal entry.

Deactivating an Account

Accounts with a zero balance and no open transactions can be deactivated. Deactivated accounts:

• Do not appear in journal entry dropdowns
• Are excluded from active COA reports
• Remain in the database for historical record integrity

Accounts cannot be deleted.

Reconciling a Bank Account at Month-End

At month-end, reconcile each bank account by comparing the system balance to the bank statement. Use Finance → Reports → Bank Reconciliation to generate the reconciliation worksheet. Flag any unreconciled items and post adjusting entries as needed.

PhilHealth and HMO receivable accounts should also be reconciled monthly against claim submission records.

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Reference

Active vs. Deactivated

Status	Visible in reports	Available in journal entries	Balance shown
Active	Yes	Yes	Yes
Deactivated	Only in historical reports	No	Yes

Permissions

Managing the chart of accounts requires the accounts permission (view / create / update / delete).