2. Fundamentals of multipart accounting
2.1 Matrix" accounting representation
To understand the structure of multi-dimensional accounting and how it differs from conventional double-entry systems, we need to take an intermediate step and look at the principle of "matrix" accounting.
In a conventional system, a transaction is recorded in TWO different places, in two separate accounts: one of these accounts is debited, and the second is credited to record the financial counterpart.
For example, if you buy goods on credit for 1,000 euros, you debit a purchase account or a stock account, and credit the supplier's account. But you can do it another way, by recording the operation ONCE, in a table (a matrix), at the intersection of a LINE corresponding...
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Fundamentals of multipart accounting
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