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