Published policy

Accounting and Financial Ledger Policy (v2.1)

Double-entry bookkeeping rules, revenue recognition standards, separation of finance and chart accounts, and prohibition of destructive database mutations.

Slug: accounting-posting-policyEffective: 2026-08-20Published: 8/20/2026Statutory & Rulebook Codified

Accounting and Financial Ledger Policy

This policy defines the core bookkeeping, revenue recognition, and ledger posting principles governing SUBIDHA CORE.

1. Fundamental Accounting Postures

**Double-Entry General Ledger**: All financial events post balanced debits and credits across the Chart of Accounts (COA).
**Append-Only Immutable Records**: Financial tables are strictly append-only. Under no circumstances may `DELETE`, `DROP`, `TRUNCATE`, or raw SQL mutations be executed against financial ledgers.
**Finance Account vs Chart Account Separation**:

**Finance Accounts** represent real-world physical and digital money locations (Cash Drawer, Bank Account, Gateway Clearing).
**Chart Accounts** represent statutory accounting heads (Assets, Liabilities, Equity, Revenues, Expenses).

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Please confirm invoice, EMI, refund, warranty, delivery, and compliance terms with the branch before payment.

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The bridge between channels and general ledgers is governed by `FinanceAccountCoaMapping`.

2. Revenue Recognition Principles

**Direct Sales**: Revenue is recognized upon issuance of the tax invoice and physical delivery of the merchandise.
**Rental and Lease Demands**: Revenue is recognized monthly on an accrual basis when periodic rent demands are generated.
**Security Deposits**: Deposits are credited to liability accounts (`Customer Security Deposits Payable`) and are never recognized as operating revenue.
**Lucky Plan EMI Collections**: Installments collected reduce contractual customer receivables. Waiver benefits resulting from lucky draw wins are expensed to audited promotional discount / waiver accounts without altering past cash entries.

3. Customer Advances and Liabilities

**Liability Recognition**: Any funds received prior to invoice generation or in excess of active installment dues are posted as `Customer Advance Liability`.
**Application to Invoices**: Advances are cleared against customer receivables only upon formal execution of an installment schedule or invoice allocation.

4. Audit Locks and Period Close

**Monthly Period Close**: Following monthly reconciliation, accounting periods are locked against back-dated entries.
**Prior-Period Adjustments**: Any correction relating to a closed financial period must be executed in the open operating period via explicit adjustment journals.

Legal usage note

Published policy text is for customer clarity, operational governance, and statutory compliance.
Contracts, tax invoices, receipts, and audited delivery records remain the canonical transaction source.
For contract-specific clarifications, contact the Subidha Furniture showroom administration.