Proposal: Support for Technical, Statistical and Off-Balance Root Types in CoA

velja_os · October 9, 2025, 10:03am

Hi everyone,

I’ve opened a feature request on GitHub that addresses a long-standing limitation in the ERPNext - the inability to represent a technical, statistical and off-balance accounts classes used in many European accounting system like Serbia, German, French and Spain national frameworks.

In other ERP system (like Microsoft Dynamics Business Central, SAP, Odoo) these special types are already supported through “statistical”, “off-balance” or “closing” account types.

I believe this feature would greatly improve ERPNext localization capabilities and make it more compliant with real-world accounting frameworks accross Europe.

This is the link to the issue:

github.com/frappe/erpnext

Support for technical, statistical, off-balance and closing root types in Chart of Accounts

opened 09:51AM - 09 Oct 25 UTC

Unusual312

feature-request

**Is your feature request related to a problem? Please describe.** In many Europ…ean accounting system (including the Serbian, German, Spain national frameworks), the Chart of Accounts includes special technical classes beyond standard Assets, Liabilities, Equity, Income and Expenses. For example (Serbian): - **CLass 7** - Closing entries for both Balance Sheet and P&L accounts - **Class 8** - Off-balance sheet accounts (memorandum accounts) - **Class 9** - Internal cost accounting and production tracking (mandatory by the Law) These accounts are legally required and commonly used for reconciliation and reporting, but they do not belong to any of the existing ERPNext root types. Currently, ERPNext enforces a `root_type` for every account (limited to 5 values), which prevents adding such accounts without misclassyfing them. **How other ERP system handle this** - **Microsoft Dynamics 365 Business Central**: Allows accounts to be marked as "Statistical", "Off-balance" or "Closing", with the MainAccountCategory controlloling whether they appear in reports. These accounts can be journalized but are excluded from financial statements - **SAP/4HANA**: Supports "Non-posting", "Statistical" and "Off-balance" account types, enablind separation - **Odoo* provides `type = view`, `type = consolidation`, and `type = off_balance` for accounts. Off-balance accounts can record entries and balances without affecting the balance sheet or profit nad loss reports. These implementations show that it is possible to include technical and compliance-driven accounts while preserving the integrity of standard financial reporting. **Describe the solution you'd like** Introduce a flexibile way to define *technical* and *non-reporting* accounts that are excluded from standard financial statemenets but remain valid for bookkeeping. Possible implementation ideas: - Adding optional 'technical_type' or 'reporting_category' - Extend 'root_type' with additional values: - 'Off-balance' - 'Closing' - 'Statistical' - 'Internal accounting' - Exclude these from Balance Sheet and P&L reports by default - Give user a option if they want to have this in Trial Balance This would allow ERPNext to support legal accounting frameworks in countries like Serbia, Croatia, Slovenia, France (Plan Compatable), Germany (SKR04 class 9), Spain and others, without breaking existing report logic. **Describe alternatives you've considered** - Mislabeling such accounts as 'Expense' or 'Asset' to bypass validation - works, but causes incorrect totals in Balance Sheet and P&L - Maintaining a separate CoA for off-balance accounts - not practical and breaks journal consistency

If you agree that this is important, please leave a reaction or comment so it gains more visibility, or even comment here and we can have productive discussion why is this good or it is not.

The more support we gather, the higher the chances it will be prioritized by the core team.

Thanks!