OFBiz Tutorial: Charts of Accounts

HotWax SystemsPublished: Updated:


A sometime misunderstood concept in OFBiz accounting is the account class of an account; this OFBiz Tutorial will provide quick notes to avoid errors.

During the setup of a Chart of Accounts in OFBiz, it is important to assign the proper account class to each of the accounts; in fact the account class determines:

1) if the account carries a debit or credit balance
2) the financial report in which the account is included.

The complete list of classes that you can assign to an account is described by the account class tree in OFBiz:


|___> ASSET
|         |_________> LONGTERM_ASSET
|         |
|         |_________> CURRENT_ASSET
|                                 |____> CASH_EQUIVALENT
|                                 |
|                                 |____> INVENTORY_ASSET
|               |___> RETURN_OF_CAPITAL
|               |
|               |___> DIVIDEND
|_________> CASH_EXPENSE
|                       |____> INTEREST_EXPENSE
|                       |
|                       |____> COGS_EXPENSE
|                       |
|                       |____> SGA_EXPENSE
|_________> NON_CASH_EXPENSE


|              |___> ACCUM_DEPRECIATION
|              |
|              |___> ACCUM_AMORTIZATION
|         |_________> CURRENT_LIABILITY
|         |
|         |_________> LONGTERM_LIABILITY
|___> EQUITY
|         |_________> OWNERS_EQUITY
|         |
|         |_________> RETAINED_EARNINGS
|___> INCOME
|________> CASH_INCOME
|________> NON_CASH_INCOME


Asset (longterm, current, cash, inventory), expense (cash, interest, cost of goods sold, sales general administrative, non cash, depreciation, amortization, inventory adjustment) and distribution (dividend, return of capital) accounts each follow the same set of debit/credit rules. Debits increase these accounts and credits decrease these accounts. All these accounts carry a debit balance except contra revenue.

Liability (current, longterm), revenue and equity (retained earnings, owners equity) accounts follow opposite rules: credits increase liabilities, revenues, and equity, while debits decrease these accounts. All these accounts carry a credit balance except contra asset.

All the accounts belonging to the following classes are included in the Balance Sheet:

* all asset and contra asset classes
* all liability classes
* all equity classes

All the accounts belonging to the following classes are included in the Income Statement:

* all revenue and contra revenue classes
* all expense classes
* all income classes

All the accounts belonging to the cash equivalent class are included in the Cash Flow Statement.

– Jacopo

HotWax Systems About HotWax Systems
HotWax Systems is the leading global service provider for Apache OFBiz application development, and creators of HotWax Commerce, the world’s leading open-source Unified Commerce Platform. In 2017, HotWax Systems expanded its portfolio to include a full set of consulting services and custom business solutions based on the Moqui Ecosystem of open source projects.

Comments 2

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  2. Avatar for HotWax Systems

    Hello Jacopo,

    Very useful matter. Could you please elaborate further on the utility of Resource.

    Thanks in anticipation.

    Best Regards,

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