CuppaDev - Latest Comments in Double Entry Accounting in Rails

Re: Double Entry Accounting in Rails

webiyo — Mon, 07 Feb 2011 11:48:02 -0000

I am noob ! it will be great if you would explain database model in a simplified, exemplified language with diagrams :) PLEASE ! It will be a great help !

Re: Double Entry Accounting in Rails

Artificial — Fri, 14 Nov 2008 23:25:17 -0000

the approach i liked the best was the one mentioned in the article. It made the most sense, and wasn’t needlessly complicated. So i decided to implement it

Re: Double Entry Accounting in Rails

James Urquhart — Fri, 17 Oct 2008 15:32:11 -0000

Haha

Actually, that wouldn't be such a bad idea... :)

Re: Double Entry Accounting in Rails

steveluscher — Fri, 17 Oct 2008 15:28:43 -0000

I'm rather looking forward to the post "Double Entry Accounting with Invoicing in Rails."

Re: Double Entry Accounting in Rails

James Urquhart — Thu, 31 Jul 2008 08:01:57 -0000

Thanks kronidas.

When i writ that code, i hadn't quite figured out the difference between new and create. safe to say, now i know. :)

Re: Double Entry Accounting in Rails

kronidas — Thu, 31 Jul 2008 07:14:58 -0000

Repost.

Hello,
type less. :)
#third_transaction = Journal.new(:transaction_type => :transfer, :start_date => Time.now)
#third_transaction.save!
third_transaction = third_transaction.create(:transaction_type => :transfer, :start_date => Time.now)

Kronidas

Re: Double Entry Accounting in Rails

kronidas — Thu, 31 Jul 2008 07:13:29 -0000

Hello,
type less. :)
#third_transaction = Journal.new(:transaction_type => :transfer, :start_date => Time.now)
#third_transaction.save!
third_transaction.create(:transaction_type => :transfer, :start_date => Time.now)

Kronidas

Re: Double Entry Accounting in Rails

James Urquhart — Thu, 26 Jun 2008 17:14:34 -0000

John,

A Journal binds together several Posting's. Typically you'd have one per full account transaction - e.g. DEBIT Bank 100, CREDIT Revenue 100 could be linked to a single journal of the type "Deposit". In theory it makes it easy to track complex transactions which consist of transfers to/from multiple accounts.

The linked article does indeed make Journals a bit confusing by referring to them by letters (a,b,c,d). Instead you should just refer to them by key number (1,2,3,4) and the whole thing becomes much more clearer.

My above example could be recorded in the POSTINGS table as follows (assuming Bank == 100 and Revenue == 50):

Id,Account Id,Journal Id,Asset Type,Amount
1,100,1,£,100
2,50,1,£,-100

100 + -100 == 0, thus satisfying the requirements in the article.

Hope that helps. :)

Re: Double Entry Accounting in Rails

john — Wed, 18 Jun 2008 01:03:04 -0000

What I don't understand is the journal table. It looks like a simple lookup table. Why is so much ephasis placed on it in the article you reference (first one.) It says:

I.e. all POSTING entries associated with the JOURNAL entry must be successfully completed or none must be completed. The numerical sum of all POSTING entries associated with a JOURNAL entry must also equal zero

What's that mean? If you look at the example table entries is just has a, b, c, d for the type.

Thanks for the article.