feat: enhance account category with root type (#53190)

(cherry picked from commit f6639db0e9)

erpnext/accounts/doctype/account/account.js

@@ -5,8 +5,7 @@ frappe.ui.form.on("Account", {
 	setup: function (frm) {
 		frm.add_fetch("parent_account", "report_type", "report_type");
 		frm.add_fetch("parent_account", "root_type", "root_type");
-	},
-	onload: function (frm) {
+
 		frm.set_query("parent_account", function (doc) {
 			return {
 				filters: {
@@ -15,7 +14,18 @@ frappe.ui.form.on("Account", {
 				},
 			};
 		});
+
+		frm.set_query("account_category", function () {
+			if (!frm.doc.root_type) return;
+
+			return {
+				filters: {
+					root_type: ["in", [frm.doc.root_type, ""]],
+				},
+			};
+		});
 	},
+
 	refresh: function (frm) {
 		frm.toggle_display("account_name", frm.is_new());
 
@@ -58,12 +68,20 @@ frappe.ui.form.on("Account", {
 			}
 		}
 	},
+
 	account_type: function (frm) {
 		if (frm.doc.is_group == 0) {
 			frm.toggle_display(["tax_rate"], frm.doc.account_type == "Tax");
 			frm.toggle_display("warehouse", frm.doc.account_type == "Stock");
 		}
 	},
+
+	root_type: function (frm) {
+		if (frm.doc.account_category) {
+			frm.set_value("account_category", "");
+		}
+	},
+
 	add_toolbar_buttons: function (frm) {
 		frm.add_custom_button(
 			__("Chart of Accounts"),

erpnext/accounts/doctype/account_category/account_category.json

@@ -7,6 +7,8 @@
  "engine": "InnoDB",
  "field_order": [
   "account_category_name",
+  "root_type",
+  "column_break_qluu",
   "description"
  ],
  "fields": [
@@ -14,6 +16,7 @@
    "fieldname": "account_category_name",
    "fieldtype": "Data",
    "in_list_view": 1,
+   "in_standard_filter": 1,
    "label": "Account Category Name",
    "reqd": 1,
    "unique": 1
@@ -22,6 +25,18 @@
    "fieldname": "description",
    "fieldtype": "Small Text",
    "label": "Description"
+  },
+  {
+   "fieldname": "column_break_qluu",
+   "fieldtype": "Column Break"
+  },
+  {
+   "fieldname": "root_type",
+   "fieldtype": "Select",
+   "in_list_view": 1,
+   "in_standard_filter": 1,
+   "label": "Root Type",
+   "options": "\nAsset\nLiability\nIncome\nExpense\nEquity"
   }
  ],
  "grid_page_length": 50,
@@ -32,7 +47,7 @@
    "link_fieldname": "account_category"
   }
  ],
- "modified": "2026-02-23 01:19:49.589393",
+ "modified": "2026-03-05 06:49:34.430723",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Account Category",
@@ -69,7 +84,7 @@
   }
  ],
  "row_format": "Dynamic",
- "search_fields": "account_category_name, description",
+ "search_fields": "account_category_name, root_type",
  "sort_field": "creation",
  "sort_order": "DESC",
  "states": []

erpnext/accounts/doctype/account_category/account_category.py

@@ -21,6 +21,7 @@ class AccountCategory(Document):
 
 		account_category_name: DF.Data
 		description: DF.SmallText | None
+		root_type: DF.Literal["", "Asset", "Liability", "Income", "Expense", "Equity"]
 	# end: auto-generated types
 
 	def after_rename(self, old_name, new_name, merge):

erpnext/accounts/financial_report_template/account_categories.json

@@ -1,118 +1,147 @@
 [
   {
     "account_category_name": "Cash and Cash Equivalents",
+    "root_type": "Asset",
     "description": "Cash on hand, demand deposits, and short-term highly liquid investments readily convertible to cash with original maturities of three months or less. Examples: Cash in hand, bank current accounts, money market funds, treasury bills \u22643 months."
   },
   {
     "account_category_name": "Cost of Goods Sold",
+    "root_type": "Expense",
     "description": "Direct costs attributable to cost of goods sold. Examples: Raw materials, stock in trade."
   },
   {
     "account_category_name": "Current Tax Liabilities",
+    "root_type": "Liability",
     "description": "Income tax obligations for current and prior periods. Examples: Provision for income tax, advance tax paid, tax deducted at source."
   },
   {
     "account_category_name": "Finance Costs",
+    "root_type": "Expense",
     "description": "Interest and financing-related expenses. Examples: Interest on borrowings, bank charges, lease interest, foreign exchange losses."
   },
   {
     "account_category_name": "Intangible Assets",
+    "root_type": "Asset",
     "description": "Identifiable non-monetary assets without physical substance. Examples: Software, patents, trademarks, licenses, development costs."
   },
   {
     "account_category_name": "Investment Income",
+    "root_type": "Income",
     "description": "Returns generated from financial investments and cash management. Examples: Interest income, dividend income, rental income, fair value gains."
   },
   {
     "account_category_name": "Long-term Borrowings",
+    "root_type": "Liability",
     "description": "Interest-bearing debt obligations with maturity beyond one year. Examples: Term loans, bonds, debentures, mortgages."
   },
   {
     "account_category_name": "Long-term Investments",
+    "root_type": "Asset",
     "description": "Investments held for strategic purposes or extended periods. Examples: Equity investments, bonds, associates, joint ventures, deposits."
   },
   {
     "account_category_name": "Long-term Provisions",
+    "root_type": "Liability",
     "description": "Present obligations beyond one year with uncertain timing/amount. Examples: Asset retirement obligations, environmental remediation, legal settlements."
   },
   {
     "account_category_name": "Operating Expenses",
+    "root_type": "Expense",
     "description": "Costs incurred in ordinary business operations excluding direct costs. Examples: Selling expenses, administrative costs, marketing, utilities, rent."
   },
   {
     "account_category_name": "Other Current Assets",
+    "root_type": "Asset",
     "description": "Current assets not classified elsewhere including prepaid expenses and advances. Examples: Prepaid insurance, prepaid rent, advance to suppliers, security deposits recoverable within one year."
   },
   {
     "account_category_name": "Other Current Liabilities",
+    "root_type": "Liability",
     "description": "Short-term obligations not classified elsewhere. Examples: Accrued expenses, statutory liabilities, employee payables."
   },
   {
     "account_category_name": "Other Direct Costs",
+    "root_type": "Expense",
     "description": "Direct costs excluding cost of goods sold. Examples: Direct labor, manufacturing overhead, freight inward."
   },
   {
     "account_category_name": "Other Non-current Assets",
+    "root_type": "Asset",
     "description": "Long-term assets not classified elsewhere. Examples: Security deposits, long-term prepayments, advances for capital goods."
   },
   {
     "account_category_name": "Other Non-current Liabilities",
+    "root_type": "Liability",
     "description": "Long-term obligations not classified elsewhere. Examples: Long-term deposits, deferred income, government grants."
   },
   {
     "account_category_name": "Other Operating Income",
+    "root_type": "Income",
     "description": "Incidental income related to business operations but not core revenue. Examples: Scrap sales, government grants, insurance claims, foreign exchange gains."
   },
   {
     "account_category_name": "Other Payables",
+    "root_type": "Liability",
     "description": "Non-trade payables and obligations to parties other than suppliers. Examples: Employee payables, accrued expenses, customer advances, security deposits received."
   },
   {
     "account_category_name": "Other Receivables",
+    "root_type": "Asset",
     "description": "Non-trade amounts due to the entity excluding financing arrangements. Examples: Employee advances, insurance claims, tax refunds, deposits recoverable."
   },
   {
     "account_category_name": "Reserves and Surplus",
+    "root_type": "Equity",
     "description": "Accumulated profits and other reserves created from profits or share premium. Examples: General reserves, retained earnings, statutory reserves, share premium."
   },
   {
     "account_category_name": "Revenue from Operations",
+    "root_type": "Income",
     "description": "Income from primary business activities in ordinary course. Examples: Sales of goods, service revenue, commission income, royalty income."
   },
   {
     "account_category_name": "Share Capital",
+    "root_type": "Equity",
     "description": "Nominal value of issued and paid-up equity shares. Examples: Common stock, ordinary shares, preference shares."
   },
   {
     "account_category_name": "Short-term Borrowings",
+    "root_type": "Liability",
     "description": "Interest-bearing debt obligations due within one year. Examples: Bank overdrafts, short-term loans, current portion of long-term debt."
   },
   {
     "account_category_name": "Short-term Investments",
+    "root_type": "Asset",
     "description": "Financial instruments held for short-term investment purposes, readily convertible to cash. Examples: Marketable securities, fixed deposits >3 months, mutual funds."
   },
   {
     "account_category_name": "Short-term Provisions",
+    "root_type": "Liability",
     "description": "Present obligations due within one year with uncertain timing or amount. Examples: Warranty provisions, legal claims, restructuring costs."
   },
   {
     "account_category_name": "Stock Assets",
+    "root_type": "Asset",
     "description": "Inventory and stock-related assets including raw materials, work in progress, finished goods, and stock in trade. Examples: Raw materials, finished goods, trading merchandise, consumables."
   },
   {
     "account_category_name": "Tangible Assets",
+    "root_type": "Asset",
     "description": "Physical assets used in business operations including property, plant, and equipment. Examples: Land, buildings, machinery, equipment, vehicles, furniture, capital work in progress."
   },
   {
     "account_category_name": "Tax Expense",
+    "root_type": "Expense",
     "description": "Current and deferred income tax obligations. Examples: Current tax provision, deferred tax expense, withholding taxes."
   },
   {
     "account_category_name": "Trade Payables",
+    "root_type": "Liability",
     "description": "Amounts owed to suppliers. Examples: Supplier invoices, accrued purchases, bills payable."
   },
   {
     "account_category_name": "Trade Receivables",
+    "root_type": "Asset",
     "description": "Amounts due from customers for goods sold or services provided in ordinary course of business. Examples: Accounts receivable, notes receivable from customers, unbilled revenue."
   }
-]
+]

erpnext/patches.txt

@@ -476,3 +476,4 @@ erpnext.patches.v16_0.co_by_product_patch
 erpnext.patches.v16_0.depends_on_inv_dimensions
 erpnext.patches.v16_0.uom_category
 erpnext.patches.v16_0.merge_repost_settings_to_accounts_settings
+erpnext.patches.v16_0.set_root_type_in_account_categories

erpnext/patches/v16_0/set_root_type_in_account_categories.py

@@ -0,0 +1,32 @@
+import json
+from pathlib import Path
+
+import frappe
+
+
+def execute():
+	base_path = Path(frappe.get_app_path("erpnext", "accounts")).resolve()
+	categories_file = (base_path / "financial_report_template" / "account_categories.json").resolve()
+
+	if not categories_file.exists():
+		return
+
+	categories = json.loads(frappe.read_file(str(categories_file)))
+
+	valid_root_types = set(frappe.get_meta("Account Category").get_field("root_type").options.split("\n"))
+
+	root_type_categories = {}
+	for category in categories:
+		if (root_type := category.get("root_type")) and root_type in valid_root_types:
+			root_type_categories.setdefault(root_type, []).append(category["account_category_name"])
+
+	if not root_type_categories:
+		return
+
+	for root_type, category_names in root_type_categories.items():
+		frappe.db.set_value(
+			"Account Category",
+			{"name": ["in", category_names], "root_type": ["is", "not set"]},
+			"root_type",
+			root_type,
+		)