From ADC

Accounts are a central part of bookkeeping. Traditional approach is to have certain number of high level aggregate accounts, and manage details inside each account with so-called analytical accounts. The main problems are data loss, which occurs on each measurement, and challenge to data integrity, that revenue recognition represents.

How Abstract addresses this accounting challenges is covered in a separate article. In short, modern day information technology allows to work directly with directly with data, doing measurement on demand. There is no accounts in Abstract in their traditional meaning. They are replaced with flows. Aggregate data, accounts used to provide, can be generated on demand by grouping data from respectful flows. This will be implemented in later versions together with other w:Business intelligence tasks.

Practical considerations make completely on-demand approach unsustainable, because numerous earlier operations affect value of recognized assets and liabilities. Accounting chart is used to consistently apply certain rules to all registered operations. As of version 0.0.2 this includes:

• functional currency;
• foreign currency exchange rates.

With the rules being set by the accounting chart, transfers describe, how the situation develops.

See also

• User Manual TOC

• Setting up accounting chart
• Registering flows
• Processing transfers

• Working with currencies