Tagged: Accounting

Development Update

I’m hoping to upload working examples of the modules to a web host, by next week or even during the weekend. I’ll upload the php code in sourforge after that, after I do some more testing. What I’ve done so far is basic stuff, something that could easily integrate in any blogging platform such as WordPress. The idea is for any entity – any blogger or organization – on a basic web host plan to each have the ability to establish and manage its own currency brand to be used for inter-entity market transactions.

I don’t know if there is anything similar to what I have developed so far, which is a currency lifecycle oriented accounting system. This approach promotes the traceability of currency issuance to a specific entity, by not allowing currency issuance or transfer between entities. The system categorizes each transaction into three distinct events:

  • Currency Creation – There is a net increase in an entity’s credit and debit limits, i.e., the absolute value of spendable or usable currency units increases. For example, an entity’s expense account budget limit increases, accompanied by an increase in its revenue account budget. The sytem allows intra-entity-only currency creation.
  • Currency Assignment – There is no net increase or decrease in usable currency units. For example, an expense account might assign some of its spending quota to an employee account, or a store might allocate some of its sales budget to another store. The sytem allows intra-entity-only currency assignment.
  • Currency Use – There is a net decrease in the usable credit and debit limits. For example, the buyer’s expense limit decreases as his credit’s are used to cancel the seller’s debits which are held in a revenue account. The system not only allows but also promotes inter-entity currency use. Within an entity that I envision joining, I would even discourage intra-entity currency use. 

It’s likely that there are other systems that might be tailored to what I have in mind, like Cyclos and other bookkeeping software. If that’s the case, it might mean less work for me. Even though my development work so far might have been redundant, I feel that it nevertheless provided the necessary background for me to be able to describe the fundamental accounting functionalities that are needed to implement satconomy. At least that’s what I’m hoping the working examples will provide – a blueprint for future development strategies or for configuring existing accounting systems to fit the requirements that are outlined here.