What is a Chart of Accounts?

The chart of accounts is an "account tree" used to classify all of a company's financial transactions. ERPNext provides templates that conform to Japanese accounting standards and are automatically created when a company is established.

Check the account titles

Step 1: Open the list of accounts

In the search bar勘定科目一覧 Enter the information, or click "Account List" from the "Accounting" workspace.

Step 2: Check the tree structure

Account titles are displayed in a tree structure:

資産
├── 流動資産
│   ├── 現金・預金
│   │   ├── 普通預金
│   │   └── 当座預金
│   ├── 売掛金
│   └── 在庫
├── 固定資産
│   ├── 建物
│   └── 機械装置
負債
├── 流動負債
│   ├── 買掛金
│   └── 未払費用
├── 固定負債
│   └── 長期借入金
収益
├── 売上高
└── 営業外収益
費用
├── 売上原価
├── 販売費・一般管理費
└── 営業外費用

Add an account

Step 1: Select the parent subject

Click the parent subject of the location in the tree where you want to add it.

Step 2: Add New

Click "Add Child Node".

Step 3: Enter information

Item Name	Description	Required
Account Name	Name of the account (e.g., Supplies Expense)	✅
Account Type	Group or Ledger	✅
Root Type	Assets / Liabilities / Revenue / Expenses / Equity	✅

"Group" is the parent node that includes other accounts, and "Ledger" is the account for which journal entries are actually recorded.

Step 4: Save

Enter the information and click "Add".

Setting up important accounts

In ERPNext, the following accounts are automatically used in each report:

Purpose	Location	Example
Default Accounts Receivable	Company Master	Accounts Receivable
Default Accounts Payable	Company Master	Accounts Payable
Inventory Account	Warehouse Master	Inventory
Cost of Goods Sold	Company Master	Cost of Goods Sold
Consumption Tax	Tax Template	Provisional Received Consumption Tax / Provisional Paid Consumption Tax

These can be configured in bulk in the "Default Account" section of the "Company" master data.

FAQ

Q: Can I delete an account?

Accounts for which journal entries have been recorded cannot be deleted. Please mark any unnecessary accounts as "invalid".

Q: I want to change the name of the account.

You can change the account name by right-clicking on the account and selecting "Rename". However, be aware that this will affect past journal entries.

Next Steps

Once you understand the structure of the account titles, Journal entry Let's move on.

Setting up account titles