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authoreinhverfr <einhverfr@4979c152-3d1c-0410-bac9-87ea11338e46>2007-02-18 00:56:26 +0000
committereinhverfr <einhverfr@4979c152-3d1c-0410-bac9-87ea11338e46>2007-02-18 00:56:26 +0000
commit44647ab9c528e7dbba47a50420439a5b5dfab58e (patch)
tree23b3d3a3e57671da06b0b8e472ab13c110d81671 /doc
parentfd24b71ad596013dd448fef0aca0f3df9c6bcfc8 (diff)
fixing bug 1659552
git-svn-id: https://ledger-smb.svn.sourceforge.net/svnroot/ledger-smb/trunk@813 4979c152-3d1c-0410-bac9-87ea11338e46
Diffstat (limited to 'doc')
-rw-r--r--doc/manual/LedgerSMB-manual.tex43
1 files changed, 24 insertions, 19 deletions
diff --git a/doc/manual/LedgerSMB-manual.tex b/doc/manual/LedgerSMB-manual.tex
index 0a620206..04d54993 100644
--- a/doc/manual/LedgerSMB-manual.tex
+++ b/doc/manual/LedgerSMB-manual.tex
@@ -232,7 +232,7 @@ must create a dataset to for each.
When creating a dataset, the application asks for both a username and a
superusername. If the superuser's information is not filled in, Ledger-SMB will
attempt to populate an existing dataset, but if this information is filled in,
-the progam will log into the PostgreSQL cluster with the superusername and
+the program will log into the PostgreSQL cluster with the superusername and
password, create the database, and attempt to add Plpgsql to it.
\subsection{How to Create a User}
@@ -374,23 +374,28 @@ on hand because you have decreased that one.
\subsubsection{Accrual}
-You deliver some goods to a customer and give him the bill which, as
-agreed, he promises to pay within 90 days. You record the sale as
-completed, debiting the customer's account in Accounts Payable (an asset
-account) for the amount due. This is accrual. Later, when the payment
-comes, you credit his account and debit cash. You purchase some goods on
-credit, taking delivery and promising to pay within 90 days. You debit
-inventory (an asset account) and credit the supplier's account in Accounts
-Payable (a Liability account). This is also accrual. Later, when you pay
-the bill, you credit cash and debit the supplier's account. Accrual just
-means recognizing and recording transactions when they actually occur
-rather than waiting until cash changes hands.
-
-You won't have to think about most of this stuff while doing your
-bookkeeping with LedgerSMB, but understanding it will help you set up your
-accounts, handle unusual situations, and understand the reports. If you
-need to learn more about double entry bookkeeping see the following
-references or consult an accountant.
+Early accounting systems were usually run on a cash basis. One generally did
+not consider money owed to affect the financial health of a company, so expenses
+posted when paid as did income.
+
+The problem with this approach is that it becomes very difficult or impossible
+to truly understand the exact nature of the financial health of a business. One
+cannot get the full picture of the financial health of a business because
+outstanding debts are not considered. Futhermore, this does not allow for
+revenue to be tied to cost effectively, so it becomes difficult to assess how
+profitable a given activity truly is.
+
+To solve this problem, accrual-based systems were designed. The basic principle
+is that income and expense should be posted as they are incurred, or accrued.
+This allows one to track income relative to expense for specific projects or
+operations, and make better decisions about which activities will help one
+maximize profitability.
+
+To show how these systems differ, imagine that you bill a customer for time and
+materials for a project you have just completed. The customer pays the bill
+after 30 days. In a cash based system, you would post the income at the time
+when the customer pays, while in an accrual system, the income is posted at the
+time when the project is completed.
\subsubsection{References}
@@ -525,7 +530,7 @@ or even just MMYY are all options.
ventor.
\item[DESCRIPTION] expands to the description of the part. Valid only for parts.
\item[ITEM] expands to the item field. Valid only for parts.
-\item[PARTSGROUP] expands to the partsgroup. Valid only for parts.
+\item[PERISCOPE] expands to the partsgroup. Valid only for parts.
\item[PHONE] expands to the telephoen number for customers and vendors.
\end{description}