Chapter 6. Compiere Financial Management
In a world measured by money, all business processes materialize as an event in the accounting department. As a minimum, a budget is allocated to processes, or the financial impact of a process needs to be recorded in an Information System (ERP). The true power of Compiere is reflected in the intricate, flexible, and integrated information layers of its accounting engine. In the previous chapters we have described the sales cycle, inventory and purchasing cycle, and the accounting consequences of the relevant documents. In this chapter we explain the accounting and financial aspects of the system, and will do the following:
Give you an overview of the Compiere accounting terminology
Explain how accounting entries are derived
Show you the accounting set-up required
Explain open item management and the reconciliation of Accounts Receivable and Accounts Payable ledgers
Explain cash management reconciliation
Show you how to follow up on unposted documents
Give...
