This documentation provides a guide to setting up, managing, and reporting within the Finance and Accounting module in Classe365. The system uses a double-entry accounting model to ensure accurate tracking of institution finances, ledger management, and financial reporting.

Creating an Account

Navigate to Modules > Finance & Accounting Module as shown in the figure below.

Once the user is inside the module, The user can start by creating an account.

While creating the account, The accountant has to complete below information:

Account Name
Account ID
Financial Start Year
Financial End Year
Company/Personal name
Address
Email

After inputting the required information, click on submit to create the account.

Account Overview & Dashboard

When you log into the Finance & Accounting module and activate your account, you land on the Account Dashboard, which acts as your central financial hub.

Dashboard Key Elements

Account Details: Displays company name, registered email address, currency, and current user role.
Financial Year & Status: Shows the start and end dates of the active financial year.
- Unlocked: Allows adding, editing, and deleting entries.
- Locked: Switches the account into Read-Only mode (prevents any edits or new transactions).
Bank & Cash Summary: Quick glance at real-time balances of registered bank and cash accounts.
Main Account Balances: Quick summary of primary group totals (Assets, Liabilities, Income, Expenses).
Recent Activity: Displays the recent activity logs.

Accounts (Chart of Accounts - Groups & Ledgers)

The Chart of Accounts organizes all financial accounts into a clear hierarchy.

Base Groups

The system includes four immutable top-level base groups:

Assets (Debit default)
Liabilities (Credit default)
Income (Credit default)
Expenses (Debit default)

Account Types: Group vs. Ledger

Group: A parent category/placeholder used to organize accounts (e.g., Saving Bank Accounts, Indirect Expenses). You cannot select a group directly when entering transactions.
Ledger: An individual account that holds transactions and balances (e.g., ICICI Bank Account, Tuition Fee Income, Office Rent Expense).

Step-by-Step: Creating Groups & Ledgers

Creating a New Group

Go to Accounts > Click Add Group.
Enter the Group Name (e.g., Saving Bank Account Group).
Select the Parent Group (e.g., Current Assets). You can search using auto-complete or keyboard navigation.
Click Submit.

Creating a New Ledger Account

Go to Accounts > Click Add Ledger.
Enter the Ledger Name (e.g., ICICI Bank Saving Account).
Select the parent Group.
Set the Opening Balance (if applicable):
1. Assets & Expenses: Require a Debit balance.
2. Liabilities & Income: Require a Credit balance.
Special Flags:
1. Bank/Cash Account: Check this if the account is a liquid bank or cash ledger.
2. Enable Reconciliation: Turn on if bank statement matching is needed for this account.
Optional: Add notes (e.g., Bank account number, Branch name).
Click Submit.

Confirm if the ledger is created.

Important Note on Opening Balance Mismatches:

Because this is a double-entry system, total debit opening balances must equal total credit opening balances. If there is a mismatch, the system displays a warning banner ("Difference in opening balance of [Amount]") across pages and reports until a balancing ledger entry (such as a Capital Account) is created.

Examples of Groups/Ledgers

1. Assets

Holds physical property, institutional reserves, liquid bank funds, and fees owed to the institution.

Base Group: Assets
- Sub-Group: Savings Bank Account
  - Ledger: Main Operating Account (HDFC/Chase)
  - Ledger: Student Fee Collection Account
  - Ledger: Payroll Account
- Sub-Group: Current Assets
  - Ledger: Petty Cash (Front Office)
  - Ledger: Accounts Receivable (Unpaid Student Fees)
  - Ledger: Security Deposits Paid (Utilities/Rent)
- Sub-Group: Fixed Assets
  - Ledger: School Building & Campus Land
  - Ledger: Classroom Furniture & Fixtures
  - Ledger: IT Infrastructure & Lab Computers
  - Ledger: School Buses & Vehicles
- Sub-Group: Investments
  - Ledger: Endowment Fund Fixed Deposits
  - Ledger: Infrastructure Reserve Fund

2. Liabilities and Owners Equity

Tracks institutional capital, reserves, loans, and funds collected temporarily on behalf of students or external bodies.

Base Group: Liabilities and Owners Equity
- Sub-Group: Capital Account
  - Ledger: Trust / Society General Fund
  - Ledger: Endowment Fund Capital
  - Ledger: Retained Earnings / Surplus Carryover
- Sub-Group: Current Liabilities
  - Ledger: Caution Deposit / Refundable Library Deposit
  - Ledger: Scholarships Payable to Students
  - Ledger: Staff Salary & PF Payable
  - Ledger: Vendor Accounts Payable
- Sub-Group: Loans (Liabilities)
  - Ledger: Campus Construction Term Loan
  - Ledger: Bus Fleet Financing Loan

3. Incomes

Categorizes operational student revenues, academic auxiliary services, grants, and miscellaneous earnings.

Base Group: Incomes
- Sub-Group: Fee Payments (Direct Income)
  - Ledger: Tuition Fees
  - Ledger: Admission & Registration Fees
  - Ledger: Examination & Assessment Fees
  - Ledger: Laboratory & Computer Fees
- Sub-Group: Direct Incomes
  - Ledger: Hostel & Accommodation Revenue
  - Ledger: Transport / Bus Service Fees
  - Ledger: Cafeteria & Dining Operations
- Sub-Group: Indirect Incomes
  - Ledger: Government / Research Grants Received
  - Ledger: Auditorium / Hall Rental Income
  - Ledger: Alumni Donations & Contributions
  - Ledger: Bank Interest Earned

4. Expenses

Tracks day-to-day academic delivery costs, administrative overheads, maintenance, and educational supplies.

Base Group: Expenses
- Sub-Group: Direct Expenses (Academic Delivery)
  - Ledger: Faculty & Teaching Staff Salaries
  - Ledger: Guest Lecturer / Visiting Professor Fees
  - Ledger: Lab Consumables & Chemicals
  - Ledger: Student Sports & Event Expenses
- Sub-Group: Indirect Expenses (Administrative Overheads)
  - Ledger: Administrative & Office Staff Salaries
  - Ledger: Campus Electricity & Water Utilities
  - Ledger: LMS & Software License Subscriptions
  - Ledger: Campus Security & Janitorial Services
  - Ledger: Marketing & Student Admission Campaigns
- Sub-Group: Purchases
  - Ledger: Library Books & Journals Purchase
  - Ledger: Classroom Supplies & Stationery
  - Ledger: Student Uniforms & ID Cards Inventory

Key Operational Rules for Setup

Groups vs. Ledgers: Always select Group for operational categories (Fee Payments, Fixed Assets) and Ledger for individual accounting units (Tuition Fees, Main Operating Account).
Double-Entry Setup: Debit entries reflect increases in Assets and Expenses; Credit entries reflect increases in Liabilities and Incomes.

Adding Entries to the Ledgers:

Transactions are processed using predefined entry types that enforce double-entry rules.

Standard Entry Types & Rules

Entry Type	Usage Scenario	Default Validation Rule
Receipt	Receiving funds into a bank or cash account	Must contain at least one Bank/Cash account on the Debit side.
Payment	The payment entry whenever the user makes the payment to the bank or cash account.	Must contain at least one Bank/Cash account on the Credit side.
Contra	Transferring funds between Bank and Cash accounts	Only Bank or Cash accounts allowed on both sides.
Journal	Adjustments or transfers without bank/cash movement	No Bank or Cash accounts allowed on either side.

Recording a Transaction

Navigate to Entries and select the appropriate entry type (e.g., Receipt).
Click Add Entry.
Select the transaction Date.
Select Ledgers & Amounts:
1. Select Debit/Credit ledgers from the drop-down (current balance displays automatically for reference).
2. Enter the corresponding Debit and Credit values.
3. Use Add Row if a single transaction splits across multiple accounts.
Ensure the Total Difference is zero (the system highlights unbalanced totals).
Enter a short Narration / Description.
Optional: Assign a Tag (e.g., Pending, Reviewed).
Click Submit.

Entry Actions

From the transaction list, each entry supports the following actions:

View / Edit: Modify line items or narrations (unlocked status required).
Delete: Remove entry.
Email: Send transaction details via email.
Export & Print: Download as PDF/Excel or send directly to a printer.

Financial Statements & Reporting

Profit & Loss (P&L) Statement

Calculates net operational financial performance over a selected date range.

Gross Profit / Loss: Computed from Direct Incomes (Sales) and Direct Expenses (Purchases).
Net Profit / Loss: Derived by factoring in Indirect Incomes and Indirect Expenses.

Configuring Gross vs. Net Groups: When editing an Income or Expense group under Accounts, you can toggle the FX Setting between Gross Profit/Loss and Net Profit/Loss to dictate where its child accounts appear on the P&L statement.

Balance Sheet

Provides a snapshot of total Assets, Liabilities, and Equity (Capital).

Net profit or loss from the P&L statement automatically rolls into the Balance Sheet under Equity/Capital.
Report Options:
- View Opening Balance Sheet (excludes period transactions).
- Filter by custom Date Ranges.
- Export options: CSV, XLS, or Print.

Trial Balance & Ledger Statements

Trial Balance: Lists every group and ledger alongside opening balances, total debit movements, total credit movements, and final closing balances. A green confirmation indicator confirms that total debits equal total credits.
Ledger Statement: Chronological account statement showing the running balance after every transaction.
Ledger Entries: View and sort transactions for a specific ledger without running balance calculations (ideal for sorting by date or number).

Bank Reconciliation

Go to Reports > Reconciliation.
Select an eligible account (where Enable Reconciliation was toggled on).
Review pending debit and credit transactions against bank statements.
Enter the Reconciliation Date and click Reconcile.

Settings:

The different settings available in Classe365 are:

Account Settings

Here the user can make changes to the account which includes the financial year start and financial year-end, company name, address name and the email address.

2. Printer Settings

Printer settings allow the user to make changes to the paper size and paper margin which then can be used to print entries, reports etc.

3. Tags

Tags are useful to highlight entries. The user can change the color and the background as per their discretion.

These tags can be edited at any point of time.

4. Entry Types

The user can make changes to the entry types.
The user can add label, Name, Description, Prefix, Suffix & Zero padding.
There are action items of Edit/Delete as well.

5. Lock account

The accountant can lock the account to prevent any further changes to the system.

Once the account is locked further changes can't be mde.

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