Configuration

Configuration

Configuration in DIGITZ ERP defines how system features behave across different companies and modules. Many functions within the ERP are designed to adapt dynamically based on configuration settings, allowing businesses to customize workflows and control how specific features operate according to their organizational needs.

This section explains key company-level configurations such as Tax Configuration and Default Accounts Configuration, which influence how financial transactions are recorded and processed throughout the system.

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Tax Configuration

The Tax Configuration defines how taxes are applied, calculated, and posted across all financial transactions. It ensures that tax computation and ledger postings remain accurate and compliant with each company’s applicable tax structure.

Purpose:
To standardize the calculation and posting of taxes across the system, ensuring accuracy, automation, and compliance in financial reporting.

How It Works:
Each company can configure its applicable Tax Type and assign a corresponding Tax Account. The Tax Type determines how the tax is applied within transactions, while the Tax Account defines where the tax amounts are posted in the general ledger. Once configured, these settings are automatically applied to invoices, purchases, and other taxable entries, with the flexibility for users to modify them when specific cases require custom handling.

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Default Accounts Configuration

The Default Accounts Configuration defines a set of pre-assigned ledger accounts that the system automatically uses in financial transactions. These defaults help maintain consistency, accuracy, and efficiency across various accounting documents such as invoices, payments, and expense entries.

Purpose:
To simplify data entry and maintain uniformity in financial postings by predefining key ledger accounts used in common transactions.

How It Works:
Each company can set up its own default accounts — such as Receivable, Payable, Tax, Expense, and Income accounts. When a transaction is created, DIGITZ ERP automatically uses the relevant default account, which can be overridden at the document level whenever specific adjustments or exceptions are needed.

Default Credit Purchase and Credit Sales

The Default Credit Purchase and Default Credit Sales configurations define how the system determines the default transaction type — whether it is treated as a credit transaction or as a payment-based transaction linked to a specific payment mode.

Purpose:
To control the default posting behaviour for purchase and sales transactions, ensuring accurate handling of credit transactions versus direct payment transactions.

How It Works:
When Default Credit Purchase or Default Credit Sales is enabled, the system automatically treats new transactions under those categories as credit transactions. In such cases, postings are directed to the Payable or Receivable accounts as per the ledger configuration, instead of a cash or bank account.
If the option is disabled, the system defaults to the configured Payment Mode, and the corresponding payment accounts (e.g., cash or bank) are used for posting. This flexibility allows businesses to easily define whether their standard process involves credit sales/purchases or direct payments.

Payment Mode

The Payment Mode configuration in DIGITZ ERP defines how non-credit transactions are processed and posted within the accounting system. For every transaction that is not on credit, the user must select a Payment Mode, which specifies the method of payment — whether it is through cash or bank.

Purpose:
To manage and control how payments are recorded for non-credit transactions, ensuring accurate classification and automatic ledger posting for both cash and bank operations.

How It Works:
Users can choose from existing payment modes or create new ones as needed. Each Payment Mode determines whether it represents a Cash Transaction or a Bank Transaction and can be linked to a specific Ledger Account that corresponds to the respective payment medium.
When a transaction is processed, DIGITZ ERP automatically uses the linked account associated with the selected payment mode to perform ledger postings — for example, debiting or crediting the Cash Account or Bank Account based on the transaction type. This ensures seamless and accurate financial entries without requiring manual intervention.

Conclusion

The Configuration settings in DIGITZ ERP define how the system operates across companies and modules. Proper setup of key configurations such as Tax, Default Accounts, Credit Behaviour, and Payment Modes ensures consistent, accurate, and automated financial operations.
These configurations give businesses flexibility and control, helping DIGITZ ERP adapt to different operational needs with ease.