Simplified set of types and rules for core

[epogrebnyak]

Work flow:

• A chart of accounts defines a ledger: Chart -> Ledger
• One can post entries to ledger, invalid entries are not posted Ledger -> List[Entry] -> (Ledger, List[Entry])
• On ledger closing we close income and expense accounts, create income statement, and transfer current profit to retained earnings: Ledger -> (ClosedLedger, IncomeStatement)
• Postclose entries may distribute dividend: ClosedLedger -> List[Entry] -> ClosedLedger
• End of period account balances are saved for next period: ClosedLedger -> Balances
• End of period balances create an opening entry for start of next period Balances -> Entry
• We condense contra accounts and show balance sheet report ClosedLedger -> BalanceSheet

Obtain information about ledger:

• Trial balance reflects state of ledger Ledger -> TrialBalance
• We can calculate current profit based on state of income and expense accounts

Other:

• Chart, [Entry], IncomeStatement, BalanceSheet and Balances are serialisable

Assumptions:

• No contra accounts
• Simplistic or no cash flow statement
• One level of accounts
• One currency
• No negativity or overspending checks
• Entry can touch any accounts
• Must supply entries, not transactions

Chart:

• required accounts are retained earnings account and income summary account
• Asset, Expense, Capital, Liability, Income, IncomeSummaryAccount, RetainedEarnings