YOu are trying to read accounts screen like its an accounting report… it is NOT an accounting report. Its a process. It uses Transactions and documents.
Credit and Debit are placeholders for documents and transactions to put values into.
Transaction A puts 300 into Account Dog:Credit… Account Dog’s Balance reads (300)
Transaction B puts 300 into Account Dog:Debit… Account Dog’s Balance reads -
Transaction C puts 300 into Account Dog:Debit… Account Dog’s Balance reads 300
OK now that you got that understanding… lets get little more complex…
Account Dog has 300 in Debit, 0 in Credit so balance is 300
You want to move money from Account Dog into Account Cat. Account cat has 0 in credit or debit
You make a transaction that puts 300 into Account Dog:Credit which makes Account Dog’s balance -
That same transaction puts 300 into Account Cat:Debit so now Account Cat’s balance is 300
Account Cat Debited the money from Account Dog which is why its under Debit for account Cat… To make account Dog’s balance correct you had to put a value into Credit to balance it.
If you want to understand the accounting… then try not to relate the words Credit and Debit in a literal sense… instead try to understand the process. Credit and Debit do have actual value and they mean what they say, But you are looking at the accounting screen wrong.
(BALANCE) = negative yes
The Account Type (Debit/Credit) parameter is for creating entity accounts. You can have a Credit based Customer account or a Debit based Customer account. Debit Customer Account = predefined balance to pay from when buying goods. Credit Customer Account = Charge account.