swaitsandClaude Opus 5.5
321b94562a
check / check (push) Canceled after 0s
A project is a class with facts (description, status, kind, party, dates, links, notes) in one project.set event behind the format feature projects. Four tools (books.add_project, update_project, projects, project); documents and decisions link to projects; B-37: on-spec costs are expensed as incurred, repayment is revenue, and the unrecovered cost is never below zero (Kani). Viewer: a Projects list and a project page with its figures, by month and by account. The sidebar measures its footer instead of reserving a fixed 172 px. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
76 lines
4.7 KiB
Markdown
76 lines
4.7 KiB
Markdown
# Glossary
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For agents (and humans) new to accounting. The engine's naming follows these
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definitions exactly.
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- **Debit / Credit** — The two sides of every journal line. Not "good" and
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"bad": debit = left, credit = right. What they *do* depends on the account
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type (see normal balance).
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- **Normal balance** — The side that increases an account. Assets and expenses
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are debit-normal (a debit increases them); liabilities, equity, and revenue
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are credit-normal. `AccountType::normal_side()`.
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- **Chart of accounts** — The registry of all accounts, organized by code
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(e.g. `1000` Cash, `6000` Rent Expense). Five types, no more.
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- **Journal entry** — A set of balanced lines with a date and description.
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The atomic unit: it posts whole or not at all.
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- **Ledger** — The books: the chart plus the append-only log of posted
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entries. (In this codebase `Ledger` is also the command surface.)
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- **Posting** — Validating a draft entry and appending it to the log.
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One-way.
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- **Trial balance** — A listing of every account's debit or credit balance.
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Total debits must equal total credits; if they don't, the books are broken.
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- **Balance sheet** — Assets = Liabilities + Equity, at a point in time.
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- **Profit & loss (income statement)** — Revenue − Expenses = Net income,
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over a period.
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- **Reversing entry** — An entry that exactly undoes a posted entry (same
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lines, sides flipped), linked to the original. The correction mechanism.
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- **Placeholder account** — A header in the chart (e.g. "Current Assets")
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that organizes other accounts but takes no postings itself.
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- **Closing the books** — Period-end ritual: move revenue/expense balances
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into retained earnings so the new period starts clean. (Future: R-FUTURE-2.)
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- **Current earnings** — Net income to date on an unclosed book. We fold it
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into equity so the accounting equation holds before close.
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- **Placed in service (in-service date)** — The day an asset is ready and
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available for its use. Depreciation starts here (`Asset::in_service_date`;
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journaled under its old name `purchase_date`).
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- **Acquired date** — The day the company got the asset: the date of the
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entry that put it on the books (its purchase or a member's contribution),
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never later than the in-service date. The register holds the asset from
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here (`Ledger::asset_acquired_date`).
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- **Accumulated depreciation, posted and scheduled** — What the books carry
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for an asset (its depreciation runs, less any reversed:
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`Ledger::accumulated_posted`), and what its schedule says is due by a date
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(`accumulated_depreciation`, `accumulated_scheduled_through` in the
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tools). Book value is cost less the posted figure.
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- **§723 basis** — The company's tax basis in property a member contributed:
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the member's adjusted basis at contribution (IRC §723).
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- **Adjusted basis** — Cost plus improvements, less depreciation allowed or
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allowable (IRC §1016(a)).
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- **Depreciable basis** — What tax depreciation starts from: the cost for
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something bought; the §723 basis for business property contributed; for
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property contributed from personal use, the lesser of its fair market
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value and the member's adjusted basis (Treas. Reg. §1.168(i)-4(b)).
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- **Built-in gain or loss (§704(c))** — Property's fair market value less
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its §723 basis when contributed (Treas. Reg. §1.704-3(a)(3)(ii)). A
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built-in loss counts only for the member who contributed it (IRC
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§704(c)(1)(C)).
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- **§704(c) method** — How the tax items of contributed property are shared
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among the members so the built-in gain or loss stays with its
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contributor: traditional, traditional with curative allocations, or
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remedial (Treas. Reg. §1.704-3(b)-(d)), chosen property by property.
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- **Tax-basis capital** — A member's capital account as Schedule K-1 Item L
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reports it: cash plus the adjusted tax basis of property contributed,
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plus their share of income as figured for tax, less cash and the adjusted
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tax basis of property distributed (Form 1065 instructions, Item L).
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- **Project** — A class with its facts (rules.md B-37): what it is, where it
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stands (active, paused, finished, abandoned), what kind of work it is
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(internal product, client work, on spec, other), who it is for, its
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dates and links. Its figures are the revenue and expense lines tagged to
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it (job costing).
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- **On spec** — Work done hoping to be paid. Its costs are expenses as they
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are spent; the hoped-for payment is a gain contingency, recorded neither
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as a receivable nor as income until it arrives (ASC 450-30-25-1).
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- **Unrecovered cost** — An on-spec project's expenses less its revenue to
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date, never below zero: what it would take to be repaid in full. A
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figure, never an asset.
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