Re: accounting schema - Mailing list pgsql-sql
| From | Medi Montaseri |
|---|---|
| Subject | Re: accounting schema |
| Date | |
| Msg-id | 8078a1730802061854m7a7c2129h9e7416453fabfcaf@mail.gmail.com Whole thread Raw |
| In response to | accounting schema ("Medi Montaseri" <montaseri@gmail.com>) |
| Responses |
Re: accounting schema
|
| List | pgsql-sql |
Thanks Steve...
This is all well and good...I am getting it...but I need to chew on it more....gnucash was a good one...didn't think of that....got to get passed all the GUI stuff...but...excellent ref...
I suppose instead of AR and AP tables, I can just have one table called Entry (thanks Joe....) with an attribute indicating AR vs AP.
I am also in favor of Double Entry and accrual posting....what do I know, I hear corporations do it this way...
I also like the "audit trail" built-in feature...actually this was something I was baffled about...I was originally thinking about editing capability, but what you are suggesting is that in practice, you don't change or erase anything...to make a correction, you debit and then credit (keeping the sum happy) and yet you have the audit trail...very cool...I am liking this stuff...
And finally you mentioned that bank accounts are tricky...can you expand on this please. After all I am under the impression that "bank accounts" are a corner stone of this whole book keeping...I mean...bank accounts have debits and credits just like any account...eg interest earned is a credit and bank fees are debits...what worries you about bank accounts...
Thanks guys...this is very very nice
Medi
This is all well and good...I am getting it...but I need to chew on it more....gnucash was a good one...didn't think of that....got to get passed all the GUI stuff...but...excellent ref...
I suppose instead of AR and AP tables, I can just have one table called Entry (thanks Joe....) with an attribute indicating AR vs AP.
I am also in favor of Double Entry and accrual posting....what do I know, I hear corporations do it this way...
I also like the "audit trail" built-in feature...actually this was something I was baffled about...I was originally thinking about editing capability, but what you are suggesting is that in practice, you don't change or erase anything...to make a correction, you debit and then credit (keeping the sum happy) and yet you have the audit trail...very cool...I am liking this stuff...
And finally you mentioned that bank accounts are tricky...can you expand on this please. After all I am under the impression that "bank accounts" are a corner stone of this whole book keeping...I mean...bank accounts have debits and credits just like any account...eg interest earned is a credit and bank fees are debits...what worries you about bank accounts...
Thanks guys...this is very very nice
Medi
On Feb 6, 2008 6:35 PM, Steve Midgley <public@misuse.org> wrote:
At 05:09 PM 2/6/2008, pgsql-sql-owner@postgresql.org wrote:
>Date: Wed, 6 Feb 2008 17:08:54 -0800
>From: "Medi Montaseri" <montaseri@gmail.com>
>To: pgsql-sql@postgresql.org
>Subject: accounting schema
>Message-ID:
><8078a1730802061708q17c72234xe61be822459a24a8@mail.gmail.com>>Hi Medi,
>Hi,
>
>I am learning my way into Accounting and was wondering how Accounting
>applications are designed. perhaps you could point the way....
>
>On one hand, accountants talk about a sacret equation A = L + OE
>(Asset =
>Libility + Owner Equity) and then under each categories there are one
>or
>many account. On the other hand a DBA thinks in terms of tables and
>relations. Instead of getting theoritical, allow me to setup an
>example
You might read some source code and docs for open source accounting
software and see "how it's done." Here's one example that might be
interesting and simple enough to follow:
http://www.gnucash.org/
In general, I think there are many different accounting methods, so you
have to get clear about which one you're using. "Double-entry"
accounting is common. Cash vs. accrual posting methods matter (i.e.
when does an expense or receivable "charge" against the assets
balance?)
My most basic understanding is that in general you track assets as they
come in, to an "Accounts Receivable" ledger (i.e. table) and
liabilities to an "Accounts Payable" ledger. Then you reconcile these
two "books" into a "General Ledger" table which gives you something
like an audit trail of all activity (and a running balance). I'm sure
Wikipedia will define these three terms and lots more with greater
clarity.
But my (limited) experience with accounting schema is that they often
involve these three tables (AR/AP/GL) at their core.
As you add bank accounts, complex investment instruments, depreciation
etc, things get considerably more complex of course.
I'll readily admit my limited experience, and I'm sure others on this
list have far better information. I hope this gets you started anyway.
Sincerely,
Steve