From 44647ab9c528e7dbba47a50420439a5b5dfab58e Mon Sep 17 00:00:00 2001 From: einhverfr Date: Sun, 18 Feb 2007 00:56:26 +0000 Subject: fixing bug 1659552 git-svn-id: https://ledger-smb.svn.sourceforge.net/svnroot/ledger-smb/trunk@813 4979c152-3d1c-0410-bac9-87ea11338e46 --- doc/manual/LedgerSMB-manual.tex | 43 +++++++++++++++++++++++------------------ 1 file changed, 24 insertions(+), 19 deletions(-) (limited to 'doc') 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} -- cgit v1.2.3