Chart of accounts and service types

The account tree every posting lands in, and the service types that connect billing to it.

Finance → Accounting → Chart of Accounts → /accounting-ledger/chart-of-accounts Finance → Accounting → Service Types → /accounting-ledger/service-types

Two records decide where every shilling lands:

  • an account is a line in your general ledger;
  • a service type is a billable or payable thing, mapped to an account.

Get these right once and the ledger takes care of itself. Get them wrong and every report downstream is wrong in the same way.

Chart of accounts

The chart of accounts is your account tree. Each account carries:

FieldPurpose
Account nameWhat it is called on statements.
Account codeThe stable identifier. Postings resolve accounts by code, so codes must not be recycled.
Account typeIncome, Expense, Asset, Liability, or Equity. Determines which statement it appears on.
Account classSub-classification within the type, driving statement grouping.
BalanceCurrent balance, and whether it is a debit or credit balance.
StatusActive or inactive.

Where each type appears

TypeStatementNormal balance
IncomeProfit & lossCredit
ExpenseProfit & lossDebit
AssetBalance sheetDebit
LiabilityBalance sheetCredit
EquityBalance sheetCredit

Designing the chart

  • Keep it as small as it can be. Every extra account is a decision someone has to make correctly, every time.
  • Split where you will act on the split. Separate water from electricity if you manage them differently; do not separate "cleaning materials" from "cleaning supplies".
  • Use control accounts for receivables and payables, with the detail in the subledger rather than in dozens of accounts.
  • Mirror the statements you have to produce. If a landlord report needs gross rent separated from recoveries, the chart should already separate them.

Service types

A service type is the catalogue entry for anything you bill or pay: rent, water, service charge, garbage, parking, deposit, late fee, management commission.

FieldPurpose
NameWhat appears on invoice lines and reports.
Item code / classIdentifiers used for mapping and integration.
Account mappingThe income (or expense) account this service type posts to.
Tax treatmentThe tax class applied, feeding eTIMS submission.
Default amountPre-fills recurring charges, so a branch standard does not have to be retyped.
Classification flagsWhether the item is rent, a deposit, or another category — used by occupancy, deposit and arrears logic.

Setting up a service type

  1. Create the service type

    Name it the way it should read on a tenant's invoice.

  2. Map the account

    Choose the income account for revenue items, the expense account for cost items. This is the step that is most often skipped and most expensive to fix later.

  3. Set the tax class

    The platform default is non-VAT; mark VAT-rated items explicitly. See Tax & eTIMS.

  4. Set the default amount

    Where a branch-standard price exists. This makes outliers visible in recurring charges.

  5. Set the classification

    Rent and deposit flags matter — occupancy reporting and deposit balances read them.

Service types every organisation needs

PurposeWhy it must exist
RentThe core income line; occupancy and arrears logic classify on it.
Security depositDeposits must be a liability, separate from income.
Utilities (per utility)IoT billing posts consumption against them.
Service chargeUsually recoverable and reported separately to owners.
Late fee / penaltyThe penalties engine cannot post without one.
Management commissionOwner statements charge against it.

Provider integrations and sync

Service types can be synchronised with external providers, with a last synced indicator and a mappings surface for reviewing and retrying failures. See Tax & eTIMS for the KRA item catalogue side of this.

Checks worth running

  1. Every service type has an account

    An unmapped service type produces invoices that never post.

  2. No two service types map to the same account for different purposes

    If rent and service charge both post to "Rental income", you cannot report them separately.

  3. Deposits do not post to income

    A deposit in an income account overstates revenue and understates liabilities.

  4. Inactive accounts have no active service types pointing at them

    Postings will fail silently at the worst possible time — during a billing run.

Next steps