Folders — Complete User Guide — Two Accounts Web

Comprehensive guide for managing folders — organize and categorize your business records using simple descriptive labels

Table of Contents

1. What Are Folders?
2. Enabling the Tab via Customize Menu
3. Field-by-Field Guide
4. Creating a Folder
5. How Folders Fit in the System
6. Accounting Impact
7. Sample Data and Output
8. Accounting Regulation Compliance

1. What Are Folders?

Folders are simple descriptive labels that help you organize and categorize records within your business database. Unlike most other entities in Two Accounts Web, Folders are not financial documents — they have no monetary amounts, no accounting entries, and no impact on financial statements.

Folders can be used for:

• Categorizing records — grouping related items for easy reference
• Document management — tagging records with descriptive labels
• Internal organization — creating a structure that makes sense for your business
• Custom field grouping — using custom fields to store additional metadata about each folder

What Folders are NOT:

• They are NOT linked to transactions — no Receipt, Payment, Invoice, or Journal Entry references a Folder
• They do NOT appear in the General Ledger
• They do NOT appear on the Balance Sheet, Profit and Loss Statement, or Cash Flow Statement
• They do NOT have opening balances or monetary values

2. Enabling the Tab via Customize Menu

Folders is a standalone tab that does NOT depend on other tabs. To enable:

1. Open Customize Menu
2. Find "Folders" in the list of available tabs
3. Toggle to Visible
4. Click Save

Once enabled, you will see:

• Folders — the main listing of all folders with their descriptions

The Folders tab has no sub-settings — no footers, email templates, or recurring transactions are available for Folders.

3. Field-by-Field Guide

4. Creating a Folder

1. Go to Folders > New Folder
2. Enter the Description (required)
3. Add Custom Fields if they have been configured for Folders
4. Save

Folders appear in the listing sorted alphabetically by Description in reverse order. To edit a Folder, click the Edit button on the Folder view page. To delete, use the Delete button — Folders have no linked transactions, so they can be deleted freely.

5. How Folders Fit in the System

Folders are standalone entities with no direct integration with other modules. They are designed as simple organizational labels that you can use to:

• Track document categories — create folders for different types of business records
• Use with custom fields — expand folder functionality by adding custom fields (e.g., "Year", "Category", "Department") to store structured metadata
• Reference in your own workflow — while the system does not link transactions to folders, you can use folders as an internal reference for your own record-keeping processes

6. Accounting Impact

Folders have no accounting impact. They are non-financial entities with:

• No GL posting — Folders do not create General Ledger transactions
• No monetary fields — Folders have no amounts, accounts, debits, or credits
• No Balance Sheet impact — Folders do not appear on the Balance Sheet
• No Profit and Loss impact — Folders do not affect income or expenses
• No Cash Flow impact — Folders do not involve cash movements
• No tax impact — Folders have no tax codes or VAT implications
• No foreign currency — Folders have no currency fields

7. Sample Data and Output

Setup

Folders Listing

DR = CR Verification

Folders are non-financial entities. They have:
    No debits
    No credits
    No amounts
    No GL entries

Therefore: DR = CR verification is not applicable.
All folders exist purely as descriptive labels. ✓

8. Accounting Regulation Compliance

8.1 General — Folders Are Not Accounting Entities

Folders are descriptive labels with no financial attributes. They do not meet the recognition criteria for assets, liabilities, income, or expenses under the IASB Conceptual Framework. As such, no accounting standards directly apply to Folders.

8.2 IAS 1 — Presentation of Financial Statements

Not Applicable: IAS 1 requires the presentation of financial statement line items. Folders are not financial statement items — they are internal organizational labels and do not appear on any financial statement.

8.3 IFRS 15 — Revenue from Contracts with Customers

Not Applicable: Folders are not revenue-generating transactions. They have no connection to customer contracts, performance obligations, or revenue recognition.

8.4 IAS 32 — Financial Instruments: Presentation

Not Applicable: Folders are not financial instruments. They have no contractual rights to receive cash or other financial assets.

8.5 Summary

Folders have no accounting entries to verify:
    No debits
    No credits
    No GL transactions
    No balance sheet impact
    No profit and loss impact
    No cash flow impact

DR = CR: Not applicable — no entries exist to verify. ✓

8.6 Relevant but Not Applicable

• All IFRS and IAS Standards: Folders are non-financial organizational labels. No accounting standard applies to them — they simply organize records.
• NBR VAT Act 2012: Folders have no tax codes, no amounts, and no transaction impact. They are completely outside the scope of VAT.

End of Folders Guide