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I think where this would get confusing is that a positive number would have to decrease some accounts, but increase others, right?
by foota 3y ago
I think where this would get confusing is that a positive number would have to decrease some accounts, but increase others, right?
- jeltz 3y agoIt does not because if you use + and - liabilities are negative and assets positive and if you add all balances the sum is zero. Actually the commercial accounting software I use works like that, it uses negative balances for liability accounts.
- naasking 3y agoExactly, it's completely unnecessary extra information that doesn't need to appear in the core data model that the user never directly sees. Extracting credits, debits, reversals, returns, etc. is all higher-level information.