📒 Setting Up Chart of Accounts

ORO POS Chart of Accounts Configuration Screen

📸 Chart of Accounts screen with the account creation popup (click to enlarge)

A Chart of Accounts is the master list of financial accounts used by the POS/accounting system to classify every transaction: sales, cash, bank deposits, taxes, tips, inventory, expenses, liabilities, assets, and equity.

💡 In Simple Terms

Every dollar that comes in or goes out must be posted into the correct account. The Chart of Accounts is your map for doing that.

📋 In This Page

→ What This Screen Does
→ Screen Layout
→ Account Form Fields
→ Account Code Importance
→ Code Structure
→ Account Types
→ POS to Accounts Mapping
→ Restaurant Examples
→ Retail Examples
→ Food Truck Examples
→ Service Business
→ Healthcare
→ SaaS / Software
→ Simple Starter Setup
→ Design Advice

🎯 What This Screen Does

The Chart of Accounts screen lets your business create and manage accounting accounts such as:

💰 Cash account
🏦 Bank account
📈 Sales income account
🧾 Tax payable account
💵 Tips payable account
📦 Inventory account
📊 Cost of goods sold
🏢 Rent expense
👥 Payroll expense
🛠️ Equipment asset
💳 Loan payable
👤 Owner equity

These accounts are used in:

Balance Sheet
Profit & Loss / Income Statement
Accounting reports
Tax reporting
Sales summaries
POS-to-accounting integration
Export to external accounting software

📐 Main Screen Layout

A. Search Area (Top Left)

Field	Explanation
Account name/code	Search by account name or code
Search	Finds matching accounts

Useful when you have many accounts and need to quickly find Sales Tax, Cash, Tips, Bank Fees, etc.

B. Account List Table

Column	Meaning
Account name	Full name (often shown in hierarchy)
Account code	Numeric/alphanumeric code for sorting/reporting
Account type	Category — asset, liability, expense, income, etc.
Description	Explains what the account is for

📝 Account Form Fields (Popup)

Field	Explanation
Account code	Unique code (e.g., 10100)
Account name	Friendly name (e.g., “Cash on Hand”)
Account type	Category (Asset, Liability, etc.)
Description	Notes explaining the account purpose

🔢 Why Account Code Matters

The Account Code is a short number assigned to each account — like an ID number for accounting.

Reason	Explanation
Sorting	Reports show accounts in correct accounting order
Avoid duplicate confusion	Two accounts may have similar names but different codes
Accounting integration	External systems often require account codes
Cleaner reports	Balance Sheet and P&L become organized
Easy mapping	POS sales, tax, cash, inventory map to exact accounts
Professional bookkeeping	Accountants prefer coded structures
Scalability	New accounts can be added without breaking reporting

📊 Simple Example: Burger Sale

A restaurant sells a burger for $10, collects $0.80 sales tax, customer pays cash:

Account	Debit	Credit
Cash on Hand 10100	$10.80
Food Sales 40100		$10.00
Sales Tax Payable 22000		$0.80

🏗️ Recommended Account Code Structure

Code Range	Category
10000–19999	💰 Assets
20000–29999	💳 Liabilities
30000–39999	👤 Equity
40000–49999	📈 Income / Sales
50000–59999	📦 Cost of Goods Sold
60000–69999	💸 Operating Expenses
70000–79999	➕ Other Income
80000–89999	➖ Other Expenses / Special

📑 Account Types

Account Type	Meaning	Example
Current asset	Used within one year	Cash, bank, receivables
Current liability	Payable within one year	Sales tax, tips payable, payroll tax
Depreciation	Fixed asset value reduction	Equipment depreciation
Direct costs	Costs tied to products sold	Food cost, product cost
Equity	Owner investment & retained earnings	Owner capital
Expense	Normal business expenses	Rent, utilities, payroll
Fixed asset	Long-term physical assets	POS terminals, kitchen equipment
Inventory	Products/ingredients held for sale	Food inventory, retail stock
Liability	General debts/obligations	Loans payable
Non-current asset	Long-term assets, slow to convert	Long-term deposits
Non-current liability	Debts due after one year	Long-term loan
Other income	Income outside normal sales	Interest income, vendor rebates
Overhead	Indirect operating costs	Admin, office costs
Prepayment	Expenses paid in advance	Prepaid rent, prepaid insurance

🔗 How POS Transactions Connect to Chart of Accounts

A properly configured POS automatically maps business activity to accounts.

POS Activity	Accounting Account
Cash sale	Cash Drawer
Card sale	Credit Card Clearing
Sales tax collected	Sales Tax Payable
Tip collected	Tips Payable
Gift card sold	Gift Card Liability
Gift card redeemed	Reduce Gift Card Liability
Food sold	Food Sales
Beverage sold	Beverage Sales
Inventory reduced	Inventory Asset
Cost recognized	Cost of Goods Sold
Refund issued	Refunds / Returns
Discount applied	Discounts Given
Service charge	Service Charge Income/Payable
Delivery fee	Delivery Fee Income

🍴 Restaurant — Full Chart of Accounts

💰 Restaurant Assets

Code	Account Name
10100	Cash Drawer
10110	Petty Cash
10200	Bank – Checking
10300	Credit Card Clearing
10400	Online Order Clearing
11000	Accounts Receivable
12000	Food Inventory
12100	Beverage Inventory
12200	Liquor Inventory
15000	Kitchen Equipment
15100	Furniture and Fixtures
15200	POS Hardware

💳 Restaurant Liabilities

Code	Account Name
20100	Accounts Payable
21000	Payroll Payable
22000	Sales Tax Payable
22100	Alcohol Tax Payable
23000	Tips Payable
23100	Service Charge Payable
24000	Gift Card Liability
25000	Customer Deposit

📈 Restaurant Income

Code	Account Name
40100	Dine-In Food Sales
40200	Takeout Food Sales
40300	Delivery Food Sales
40400	Catering Sales
40500	Bar Sales
40600	Beverage Sales
40800	Online Order Sales
40900	Banquet Sales
41000	Delivery Fee Income
41100	Service Charge Income

📦 Restaurant Direct Costs / COGS

Code	Account Name
50100	Food Cost
50200	Beverage Cost
50300	Liquor Cost
50500	Packaging Cost
51000	Waste / Spoilage

💸 Restaurant Expenses

Code	Account Name
60100	Rent Expense
60200	Payroll Expense
60400	Utilities
60800	Delivery Platform Fees
60900	Merchant Processing Fees
61300	Insurance
61400	Licenses and Permits
61900	POS Support Fees

🛒 Retail Store — Chart of Accounts

Code	Account Name	Type
10100	Cash Register	Asset
10200	Bank Checking	Asset
10400	Marketplace Clearing	Asset
12000	Merchandise Inventory	Inventory
12200	Consignment Inventory	Inventory
22000	Sales Tax Payable	Liability
23000	Gift Card Liability	Liability
40100	Product Sales	Income
40200	Online Sales	Income
40300	Marketplace Sales	Income
40400	Wholesale Sales	Income
50100	Cost of Merchandise Sold	Direct cost
50400	Inventory Shrinkage	Direct cost
60600	Marketplace Commission	Expense

🚚 Food Truck — Chart of Accounts

Code	Account Name
10100	Truck Cash Drawer
10300	Card Payment Clearing
15000	Food Truck Vehicle
40100	Food Truck Sales
40200	Event Sales
50300	Propane / Cooking Fuel Cost
60100	Fuel Expense
60200	Vehicle Maintenance
60300	Commissary Kitchen Rent
60400	Event Permit Fees
60500	Parking / Location Fees

💼 Service Business — Chart of Accounts

For salons, repair shops, consultants, clinics, cleaning services, professional offices.

Code	Account Name
40100	Service Income
40200	Consultation Income
40300	Repair Income
40400	Membership Income
40500	Subscription Income
50100	Direct Labor Cost
50200	Materials Used

🏥 Healthcare / Diagnostic Center

Code	Account Name
11000	Patient Receivables
11100	Insurance Receivables
12100	Reagent Inventory
15000	Lab Equipment
15100	Imaging Equipment
40100	Consultation Income
40200	Diagnostic Test Income
40300	Lab Income
40400	Imaging Income
40500	Pharmacy Sales
60100	Doctor Fees

💻 Software / SaaS Business

Code	Account Name
10300	Payment Gateway Clearing
23000	Deferred Revenue
40100	Software License Sales
40200	Subscription Revenue
40300	Support Revenue
40400	Custom Development Revenue
40500	Implementation Revenue
50100	Hosting Cost
50200	Payment Gateway Fees
60100	Developer Payroll

⭐ Recommended Simple Setup for Small Restaurant

💡 Start Simple

For a small restaurant, do not start with too many accounts. This clean starter setup is enough to produce meaningful reports without making accounting too complicated.

Code	Account Name
10100	Cash Drawer
10200	Bank Checking
10300	Credit Card Clearing
12000	Food Inventory
20100	Accounts Payable
22000	Sales Tax Payable
23000	Tips Payable
24000	Gift Card Liability
30100	Owner Equity
40100	Food Sales
40200	Beverage Sales
40300	Delivery Sales
50100	Food Cost
50200	Beverage Cost
60100	Rent
60200	Payroll
60300	Utilities
60400	Merchant Fees
60500	Advertising
60600	Repairs and Maintenance

✅ Design Advice

📌 Best Practices

Good Practice	Why
Simple enough for store owners	Too many accounts confuse daily operation
Detailed enough for accountants	Reports need useful categories
Consistent with tax reporting	Makes year-end work easier
Mapped correctly to POS events	Avoids wrong sales/tax/tip reporting
Separated by sales type	Dine-in, takeout, delivery, catering
Separated by cost type	Food, beverage, liquor, packaging
Not overcomplicated at the start	Accounts can be added later

📚 Need More Help?

📞 Contact Support

Visit our knowledge base at guide.orocube.com or contact support at helpdesk@orocube.net