Company Setup

A company is a type of legal entity created by a group of people to operate a business or industrial venture.

When a Geer ERP account is set up, the first Company is created in Geer ERP. Depending on the nature of your business activity, you can select a manufacturing, retail, or services domain for each Company.

If you have more than one company, you can add them from:

Home > Accounting > Company

1. How to create a new Company

Click New from the Company list.
Enter the company's name, shorthand, and default currency.
Save.

company master

Your company's acronym is generated by default. FT for Frappe Technologies, as an illustration. The acronym makes it easier to distinguish between the assets of various businesses.

The acronym can also be found in your company's numerous accounts, cost centers, tax templates, warehouse, etc.

Additionally, you can include a company description and company logo.

1.1 Multi Company Structure

Assume you are the manager of a group of businesses, some of which may be smaller and some of which may be larger and are a part of the larger business (s).

You can create several companies in Geer ERP. The organizational structure of the business may be parallel, consisting of sister firms, parent-child enterprises, or both.

A parent company is a bigger business that includes one or more kid businesses. Subsidiary of a parent firm is a child company.

The overall organization of your firms is seen in the company tree view.

company tree

Geer ERP will verify whether the accounts of the child firms match the accounts of the parent company when you establish a company tree. A consolidated chart of accounts statement may be created by combining all the accounts.

1.2 Other Options when Creating a Company

Domain: The industry in which the business operates. For instance, manufacturing, services, etc. When creating your account, select one. - If this box is checked, the entity becomes a group. - If this is a child company, choose the parent from this field by choosing the group company that this firm is a part of. - If a parent company is chosen, it will be used to produce the chart of accounts for the new firm you are creating.

1.3 Chart of Accounts

The master for the Chart of Accounts is kept individually for each Company. This enables you to keep separate accounts for each business in accordance with the law. Using the Charts Of Accounts Importer, you may also import a chart of accounts.

For some nations, localized Charts of Accounts are easily accessible using Geer ERP. You can select one of the following choices when setting up the chart of accounts for a new company.

Based on the existing company's chart of accounts,
the standard chart of accounts

new company coa based on

1.4 Defaults

Many of the default values for masters and accounts can be set in the Company master. With the value for the account being pulled from the Company master if provided, these default accounts will assist you in the speedy posting of accounting transactions. A default Chart of Accounts and Cost Center are automatically established as soon as the company is created.

For a business, the following defaults can be set:

Standard Working Hours

Default Letter Head
Default Holiday List
Terms & Conditions of
Default
Country
Tax ID
Establishment Date

2. Features

2.1 Monthly Sales Target

Set the monthly sales goal at, say, $10,000 in the company's currency. Once transactions have been performed, the monthly total sales will be displayed. To learn more, go here.

2.2 Account Settings

Some of the following accounts will be set by default when you create a new company, others can be created. The accounts can be seen in the Chart of Accounts. These values can be changed later on if needed.

Round Off Account
Round Off Cost Center
Default Bank Account
Default Cash Account
Default Receivable Account
Write Off Account
Discount Received Account
Exchange Gain/Loss Account
Unrealized Account
Discount Allowed Account for Exchange Gain/Loss
Account for Payable Defaults
Account for Employee Advances
Account for Cost of Goods Template for Sold Account
Default Income Account
Sold Account
Default Deferred Revenue Account
Sold Account
Default Deferred Expense Account
Sold Account
Default Payroll Payable Account
Sold Account
Default Expense Claim Payable Account
Sold Account
Default Cost Center Credit Limit.

2.3 Stock Settings

The perpetual inventory feature would cause stock transactions to have an effect on the company's financial records. Find out more here. It is by default turned on.

Adjustment to - Default Inventory Account - Costs Associated With Valuation Included Account - Stock Received But Not Billed

company stock settings

2.4 Fixed Asset Defaults

The following accounts are required by a firm to manage its fixed assets. The majority of them will already be created. In the Chart of Accounts, they are depicted.

Depreciation expense from the accumulated depreciation account
Account Series for the Entry of Asset Depreciation (Journal Entry)
Costs Added to Asset Valuation
Gain/Loss Account
on Asset Sale
Depreciation of Assets
Asset Received But Not Billed
Account for Capital Work in Progress at the Cost Center

Fixed Asset Defaults

Check the Enable Finance Books box and choose a default finance book if you want to book your accounting transactions against various finance books.

2.5 HRA Settings

The following Salary Components should have their default component set.

Setting the default number in this section will assist Indian users with employee tax declaration calculations, particularly for calculating the HRA exemption amount.

Basic Element
Component of HRA
component of arrears

2.6 Bank Remittance Settings

for only India.

One document of transfer can be used for several bank transfers by using the Payment Order feature (in Accounts). You can create bank remittance in a format that can be accepted and that can also be submitted on the bank's portal by updating the values in the following fields.

A user can combine many payment entries or payment requests into a single document by using payment order. A user can send a single document to the bank via Bank Remittance in text format. This text format can then be manually uploaded to the Kotak Bank Payments Platform.

You received client and product codes from the bank. This must be included in the text file in the manner required by Kotak Bank.

2.7 Budget

Role for Exceptional Budget Approver: This role has the authority to approve expenses regardless of the established budget.

2.8 Company Info

Geer ERP allows you to store the following information about your business for reference.

Registration Information: - Date of Incorporation - Phone No. - Fax - Email - Website - Address

It's vital to check the "Is Your Company Address" box when entering the address below.

company address

If a corporation has many locations in India, different addresses can be listed with various GSTIN numbers. If your business has locations in Mumbai, Delhi, and Bangalore, for instance, you'll need to add various addresses with various GSTIN numbers.

Registration information: You can keep different tax, check, and bank numbers here for future use.