The Ministry of Corporate Affairs (MCA) issued a notification to make Audit Trail (Edit Log) feature a mandatory requirement in an accounting software from 1st April 2023.
According to the notification, all the businesses who are using accounting software for maintaining books of accounts should have an audit trail feature comprising of the following:
- Create edit log of each and every transaction with changes made in the books of account
- Capture the date details when such changes (edits) are made,
- Software to ensure that the edit trail cannot be disabled.
Many major accounting softwares available in India like TallyPrime, BUSY, Zoho Books etc have implemented the feature.
ERPNext has similar implementation, but in ERPNext “Track Changes” can be disabled, and the requirement suggests that the audit trail cannot be disabled. Also, deleted documents or transactions should also be recorded along with their edit log.