Accounting terminology in Compiere
In essence, Compiere adheres to the rule that accounting entries are at the lowest level, and an applicable document will have a derived accounting entry (fact). In order for you to understand the accounting process, there are Compiere accounting terms that must be clarified:
Accounting schema: The set-up of the accounting schema defines the default rules and accounts of the Compiere tenant instance.
Account elements: This refers to the natural account (debit or credit) used for the accounting balance entry (fact) posting. The posting to such elements can be actual, budget, or statistical. A chart of accounts is the listing of the account elements of the enterprise, which includes the account elements that make up the assets, liability, revenue, and expense accounts.
Accounting fact: This refers to the accounting posting entry.
Account combination: The account combination is a shortened reference (alias) to the accounting information dimension. For...
