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Financial Management - Purchase and a Payment

Why does Korrio have a purchase and payment for a transaction? Why do we need both?

For each transaction in Korrio there is a purchase and a payment associated with it. Korrio includes both for accounting purposes and to enhance club administrators’ financial management capabilities.

In financial reports, payments, or a user’s profile a purchase is a positive amount and a payment is a negative amount. A ‘zero’ balance account would be one where these two cancel each other out. This convention allows club administrators to differentiate between who has paid and who has not. For example, if a transaction in a user’s account shows a $250 payment and a $100 purchase, this would mean that the user owes the club $150. For bookkeeping purposes, payments would go into ‘accounts receivable’ until the user purchases or pays off the balance due.

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