Accounting & the ledger

How operations become journal entries — accounts, periods, and the postings behind every flow.

Carbon's flows all end the same way: shipping, receiving, finishing a job, depreciating an asset each post to the general ledger. This page covers the machinery they share.

Accounting is a switch

A company setting, accounting enabled, is off by default. With it off, the physical world still moves — the item ledger records quantities, orders and jobs change status — but no journal entries are written. Every posting below is gated on it.

HEADS UP

A shop can run operationally — receiving, building, shipping — before it keeps books. Turn accounting on and those same actions begin posting to the ledger; until then the financial entries are simply skipped.

The journal

Every posting is a journal with balanced journal lines — debits positive, credits negative. The journal carries a source type naming what produced it; each line carries an account and can be tagged with dimensions. A journal is Posted (the normal state), Draft, or Reversed — voiding writes a reversing journal rather than deleting one.

Source typePosted by
Sales ShipmentPosting a shipment — relieves inventory to COGS.
Sales InvoicePosting a sales invoice — receivable against revenue.
Purchase ReceiptPosting a receipt — inventory or WIP against GR/IR.
Purchase InvoicePosting a supplier bill — payables, clearing GR/IR.
Job Consumption / Production Event / Job ReceiptA job consuming material, logging time, and finishing into inventory.
Job CloseSweeping a job's residual work-in-process to variance.
Asset Depreciation / Asset DisposalDepreciation runs and asset write-offs.

Accounts come from one place

Carbon resolves the accounts to post to from a single company-level set of defaults — there are no per-group posting groups. The ones that recur across the flows:

AccountUsed for
InventoryValue of stock on hand.
Work in processCost accumulating on open jobs.
Cost of goods soldCost relieved when goods are sold.
Accounts receivable / payableCustomer and supplier balances.
Goods received, not invoicedThe accrual between receiving goods and being billed for them.
VarianceDifferences swept at job close or from purchase price.

Dimensions

A journal line can be tagged with dimensions — location, department, cost center, item posting group, work center, process, fixed-asset class. The same handful of accounts can then be sliced for reporting without multiplying the chart of accounts.

Periods

Every posting lands in an accounting period. A period is a current-period pointer — Active or Inactive — created and activated on demand as you post. There's no hard period-close that blocks posting; the period simply follows the postings.