Re: accounting schema - Mailing list pgsql-sql

Thanks Steve...<br />This is all well and good...I am getting it...but I need to chew on it more....gnucash was a good
one...didn'tthink of that....got to get passed all the GUI stuff...but...excellent ref...<br /><br />I suppose instead
ofAR and AP tables, I can just have one table called Entry (thanks Joe....) with an attribute indicating AR vs AP.<br
/><br/>I am also in favor of Double Entry and accrual posting....what do I know, I hear corporations do it this
way...<br/><br />I also like the "audit trail" built-in feature...actually this was something I was baffled about...I
wasoriginally thinking about editing capability, but what you are suggesting is that in practice, you don't change or
eraseanything...to make a correction, you debit and then credit (keeping the sum happy) and yet you have the audit
trail...verycool...I am liking this stuff...<br /><br />And finally you mentioned that bank accounts are tricky...can
youexpand on this please. After all I am under the impression that "bank accounts" are a corner stone of this whole
bookkeeping...I mean...bank accounts have debits and credits just like any account...eg interest earned is a credit and
bankfees are debits...what worries you about bank accounts...<br /><br />Thanks guys...this is very very nice <br /><br
/>Medi<br/><br /><div class="gmail_quote">On Feb 6, 2008 6:35 PM, Steve Midgley <<a
href="mailto:public@misuse.org">public@misuse.org</a>>wrote:<br /><blockquote class="gmail_quote"
style="border-left:1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;"> At 05:09 PM 2/6/2008,
<ahref="mailto:pgsql-sql-owner@postgresql.org">pgsql-sql-owner@postgresql.org</a> wrote:<br />>Date: Wed, 6 Feb 2008
17:08:54-0800<br />>From: "Medi Montaseri" <<a href="mailto:montaseri@gmail.com">montaseri@gmail.com</a>><br
/>>To: <a href="mailto:pgsql-sql@postgresql.org">pgsql-sql@postgresql.org</a><br />>Subject: accounting schema<br
/>>Message-ID:<br/>><<a
href="mailto:8078a1730802061708q17c72234xe61be822459a24a8@mail.gmail.com">8078a1730802061708q17c72234xe61be822459a24a8@mail.gmail.com</a>><br
/><divclass="Ih2E3d">><br />>Hi,<br />><br />>I am learning my way into Accounting and was wondering how
Accounting<br/>>applications are designed. perhaps you could point the way....<br />><br />>On one hand,
accountantstalk about a sacret equation A = L + OE<br /> >(Asset =<br />>Libility + Owner Equity) and then under
eachcategories there are one<br />>or<br />>many account. On the other hand a DBA thinks in terms of tables
and<br/>>relations. Instead of getting theoritical, allow me to setup an<br /> >example<br /><br /></div>Hi
Medi,<br/><br />You might read some source code and docs for open source accounting<br />software and see "how it's
done."Here's one example that might be<br />interesting and simple enough to follow:<br /><br /><a
href="http://www.gnucash.org/"target="_blank">http://www.gnucash.org/</a><br /><br />In general, I think there are many
differentaccounting methods, so you<br />have to get clear about which one you're using. "Double-entry"<br />
accountingis common. Cash vs. accrual posting methods matter (i.e.<br />when does an expense or receivable "charge"
againstthe assets<br />balance?)<br /><br />My most basic understanding is that in general you track assets as they<br
/>come in, to an "Accounts Receivable" ledger (i.e. table) and<br />liabilities to an "Accounts Payable" ledger. Then
youreconcile these<br />two "books" into a "General Ledger" table which gives you something<br /> like an audit trail
ofall activity (and a running balance). I'm sure<br />Wikipedia will define these three terms and lots more with
greater<br/>clarity.<br /><br />But my (limited) experience with accounting schema is that they often<br /> involve
thesethree tables (AR/AP/GL) at their core.<br /><br />As you add bank accounts, complex investment instruments,
depreciation<br/>etc, things get considerably more complex of course.<br /><br />I'll readily admit my limited
experience,and I'm sure others on this<br /> list have far better information. I hope this gets you started anyway.<br
/><br/>Sincerely,<br /><font color="#888888"><br />Steve<br /><br /></font></blockquote></div><br />