Re: Accounting ERD

Quoting unnamed sources, John Maloney claimed:

> I've been searching for a General ERD for Accounting but haven't had
> any luck finding a diagram thru searches. Can anyone provide a sample
> via link or DDL?
>
> I don't need to set up a database for an Accounting program per se,
> but incorporate Accounting info into our current db. In it's simplest
> terms, the db is a claims db for bankruptcy proceedings where creditor
> claims are filed against a debtor. Once the dust has settled and we
> begin to make disbursements, the debtor will typically wire the total
> amt to be disbursed and we will issue checks to creditors. From there
> checks can be stopped, returned, reissued, refunded, etc. Also, there
> will be multiple accounts as well as the possiblility of wire
> transfers (debit and credit). Again, I don't want to attempt to
> create a full on Accounting app, but really just be able to keep a
> ledger.
>
> My biggest issue may be how to store debits and credits. Would you do
> this all in a single table with a debit/credit attribute or store
> negative and positive values in the same column? I don't have a great
> deal of experience incorporating accounting into db's so any guidance
> is appreciated.
>
> Thanks

One column of numbers is simpler. Consider the most basic check of all, which is to see if it balances. You can do:

SELECT SUM(trxamt) from Ledger

Or you can do:

SELECT SUM(debits) - SUM(credits) FROM Ledger

While there is little difference between those two expressions, every small complication introduced at the beginning will multiply throughout the entire system. Better to squeeze for every measure of simplicity in the beginning and have a more manageable system when it gets larger.

Finally, the debit/credit display on a report is just that -- a display. It should not be confused with the basic fact of what you have: a single sum that must come to zero.

-- 
Kenneth Downs