> ## Documentation Index > Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt > Use this file to discover all available pages before exploring further. # Chart of Accounts > The chart of accounts is the list of GL accounts Arcus uses when it posts invoices, payments, inventory costs, vendor bills, bank activity, and manual journal entries. Most users should not need to change the chart every day. Treat this page as accounting setup: review it before go-live, then make changes carefully because many workflows post to these accounts automatically. ## Open the Chart Open **Accounting**, then **Chart of Accounts**. The page shows KPI cards by account class, a search box, type filters, account numbers, names, current balances, parent-child structure, active status, and system-account locks. Chart of Accounts page with account type KPI cards, search, filters, balances, system lock indicators, and account actions ## What Account Types Mean * **Assets**: cash, bank accounts, accounts receivable, inventory, prepaid expenses, and fixed assets. * **Liabilities**: accounts payable, sales tax payable, loans, credit cards, and accrued expenses. * **Equity**: owner equity, retained earnings, and current year earnings. * **Revenue**: product sales, service revenue, shipping revenue, discounts, and other income. * **COGS and expenses**: inventory cost, freight cost, supplies, payroll, rent, fees, and operating expenses. **Keep the numbering readable** Use a consistent number range, such as 1000s for assets, 2000s for liabilities, 3000s for equity, 4000s for revenue, 5000s for cost of goods sold, and 6000s for expenses. Leave gaps so new accounts can be inserted later. ## Add or Edit an Account 1. Open **Accounting > Chart of Accounts**. 2. Click **Add Account** to create a top-level account, or use a row action to edit an existing account. 3. Enter the account number and name. 4. Choose the account type and normal balance. 5. Mark it as a header account only when it should group child accounts and not receive postings directly. 6. Mark it as a bank account only for cash accounts that represent real bank, drawer, or clearing accounts. 7. Set a parent account when the account should roll up under another account. 8. Save and review the account in the list before using it in settings or transactions. Add GL Account modal with account number, name, account type, normal balance, header account, bank account, parent account, and description fields ## System Accounts Some accounts are protected because Arcus needs them for automatic postings. These include receivables, payables, inventory, cost of goods sold, sales tax, undeposited funds, and retained earnings. Protected accounts can often be renamed for clarity, but their accounting purpose should not be changed casually. **Do not repurpose system accounts** If a system account is mapped incorrectly, fix the mapping in settings with accounting approval. Do not turn a protected receivables, payables, tax, inventory, or clearing account into a general-purpose account just to make a dropdown easier. ## Where the Chart Affects Arcus * **Orders and invoices**: sales, discounts, tax, payment, and receivable postings use mapped GL accounts. * **Inventory**: receiving, adjustments, fulfillment, COGS, and recosting depend on inventory and cost accounts. * **Purchasing and AP**: vendor bills, payments, credits, checks, and GRNI rely on payable and expense accounts. * **Bank reconciliation**: bank accounts must connect to the correct GL cash account before reconciliation. * **Financial reports**: account type, number, and parent structure control report grouping and order. ## Common Blocks * **Duplicate account number**: choose a number that is not already active in the entity. * **Account does not appear in a dropdown**: confirm it is active and that the account type is allowed for that workflow. * **Bank account option is disabled**: only eligible asset accounts can be marked as bank accounts. * **Cannot deactivate an account**: clear open balances and remove active settings that still depend on it. * **Reports look out of order**: review account numbers and parent accounts. ## Related Articles Create, review, and reverse journal entries. Run balance sheet, profit and loss, cash flow, and operational reports. Match bank transactions to payments, deposits, payouts, and checks. Configure fixed asset categories, lease payment routing, and transaction categorization rules. Record vendor bills, approve them, post them, and track AP aging.