Accounting fundamentals
How Product types, normal balances, posting batches, movements, and reversals work in remoteEaze.
remoteEaze records financial activity as balanced posting batches. Each batch contains Debit and Credit lines whose local-currency totals must be equal. Products classify the accounting purpose of Accounts, while Accounts hold the posted balances for a Branch and currency.
Product types and normal balances
| Product Type | Normal balance | Increased by | Decreased by | Closing balance |
|---|---|---|---|---|
| Asset | Debit | Debit | Credit | Opening + Debits - Credits |
| Expense | Debit | Debit | Credit | Opening + Debits - Credits |
| Contingent Asset | Debit | Debit | Credit | Opening + Debits - Credits |
| Liability | Credit | Credit | Debit | Opening + Credits - Debits |
| Income | Credit | Credit | Debit | Opening + Credits - Debits |
| Contingent Liability | Credit | Credit | Debit | Opening + Credits - Debits |
A negative balance means the Product is on the opposite side from its normal balance. Trial Balance reporting places signed balances in the Debit or Credit column and checks that total Debits equal total Credits within the currency tolerance.
Product and Account
A Product is the reusable ledger classification. It defines the Product Type, code range, customer-facing behavior, and posting restrictions.
An Account is the Branch and currency-specific balance holder. A customer-facing Product can support customer Accounts. An internal Product supports internal GL Accounts used for control, income, expense, receivable, payable, tax, and settlement postings.
Loans use customer-facing Asset Products because the outstanding principal is an amount owed to the organization. Deposits use customer-facing Liability Products because the balance is owed to the customer.
Balances and movements
- Account Balance is the balance on one Account.
- Product Balance aggregates activity for a Product, Branch, currency, and accounting period.
- Daily Movement is the day's Debit and Credit activity.
- Month-to-Date and Year-to-Date accumulate movements within their accounting periods.
- Opening Balance is brought forward from the preceding period.
- Closing Balance applies the period's movements using the Product's normal balance formula.
Customer-facing screens present the operational account balance. Internal GL views retain the accounting sign and Product normal-balance meaning needed for reconciliation and reporting.
Typical posting shapes
The exact Transaction Codes, Products, Accounts, and taxes come from the tenant's Authorized configuration. These examples show the posting direction used by the corresponding business event.
| Event | Debit | Credit |
|---|---|---|
| Customer deposits cash | Cash or settlement Asset | Customer deposit Liability |
| Loan is disbursed into a deposit Account | Customer loan Asset | Customer deposit Liability |
| Loan is repaid from a deposit Account | Customer deposit Liability | Customer loan Asset |
| Loan interest accrues | Interest receivable Asset | Interest Income |
| Deposit interest accrues | Interest Expense | Interest payable Liability |
| Deposit interest is capitalized | Interest payable Liability | Customer deposit Liability |
| Commission is charged to a deposit Account | Customer deposit Liability | Commission Income and any configured tax Liability |
When settlement uses cash, an external clearing Account, or another configured destination, that destination replaces the deposit Account shown in the example. The batch must still balance in local currency.
Contingent Products
Contingent Asset and Contingent Liability Products record memorandum exposures that are tracked outside recognized Asset and Liability balances. Collateral, guarantee, and other exposure configuration determines when those entries are created or released.
Reversals
A reversal does not erase the original transaction. It creates a linked posting whose Debit and Credit effects negate the original batch. Both records remain available for audit, statements, reconciliation, COB, and reports.
Use Chart of Accounts to configure the ledger categories and Transaction Codes to control posting purposes, then read Create a transaction for the operational posting journey.