Financial Accounts and Payments

Financial Accounts

Financial Accounts are a classification of the various accounts which are used to make or recieve payments from & to vendors, suppliers, customers, employees, agencies etc.

Example:

  • Specific Bank (Branches etc) - HDFC Bank, SBI Bank
  • Cash Payments
  • Specific Online Payment Gateways - Paypal, CCAvenue

Financial Accounts are used to track payments due (either to recieve or make), thereby help keeping track of financial records within a specific account. This track is kept using the 'Change Log' of a specific account.

 

Financial Account Types

Financial Account Types are predefined types of Financial Instruments used to make & recieve payments. Examples of Financial Account Types are

  • Bank
  • Cash
  • Payment Gateway

 

Payments

A payment is the transfer of money from one party (such as a company, person, vendor, supplier etc) to another (such as a company, person, vendor, supplier etc). Payments are usually made in exchange against provision of goods or services, in order to fulfill a legal obligation.

Payment methods are of two types

- Exchanging, i.e, changing coins, money or banknotes in terms of the price of goods or service

- Provisioning, i.e, the transfer of money from one account to another