= Bookkeeping

Double Entry Bookkeeping System for Rails

Installation

Add this line to your application's Gemfile:

gem 'bookkeeping'

And then execute:

$ bundle

Usage

rails g bookkeeping rake db:migrate

Basic theory

http://en.wikipedia.org/wiki/Debits_and_credits

In Double Entry Accounting there are 5 account types: Asset, Liability, Income, Expense and Equity defined as follows:

Asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity

Liability is defined as an obligation of an entity arising from past entries or events, the settlement of which may result in the transfer or use of assets, provision of services or another yielding of economic benefits in the future.

Income is increasing in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.

Expense is a decrease in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.

Equity consists of the net assets of an entity. Net assets is the difference between the total assets of the entity and all its liabilities.

Accounting Equation

At any given point accounts should satisfy the following equation:

Assets + Expenses = Liabilities + Equity + Income

You can verify it with Account.balanced?.

Accounts

There are only 5 types of accounts Bookkeeping::AssetAccount, Bookkeeping::LiabilityAccount, Bookkeeping::IncomeAccount, Bookkeeping::ExpenseAccount and Bookkeeping::EquityAccount

You can create own accounts with target type like this:

Bookkeeping::AssetAccount.create name: 'cash'

or

@user.accounts.asset.create name: 'cash'

or

Bookkeeping::AssetAccount.create name: 'cash', accountable: @user

By default, the account can have a negative balance. If you don't want to use a negative balance for this account you can set overdraft_enabled: false

Accountable

Every account belongs to accountable. It can be a user, company, etc. If you want to add bookkeeping accounts for the User model you can do like this:

class User
  include Bookkeeping::Extension

  has_accounts do
  income :income
  asset :cash
  expense :rent, false # if you don't want negative balance
  end
end

Entries

For performing accounting operations you have to create entries. You can do it using gem DSL:

entry = Bookkeeping::Entry.prepare(description: "Got invoice", transactionable: @invoice) do
  debit @user.accounts.expense, 100
  credit @user.accounts.cash, 50
  credit @user.accounts.debt, 50
end

entry.save!

or, if you prefer to use only DSL methods:

entry = Bookkeeping::Entry.prepare do
  description "Got inovoice"
  transactionable @invoice
  debit @user.accounts.expense, 100
  credit @user.accounts.cash, 50
  credit @user.accounts.debt, 50
end

entry.save!

Entry must have equality of sum amounts for its debits and credits.

You can rollback entries:

@entry.rollback!

Contributing

1. Fork it ( https://github.com/ashlinchak/bookkeeping/fork )
2. Create your feature branch (git checkout -b my-new-feature)
3. Commit your changes (git commit -am 'Add some feature')
4. Push to the branch (git push origin my-new-feature)
5. Create a new Pull Request