So this project is certainly a step in the right direction. Manual entry is prone to errors – either typos or (more likely) lookup control selection. If one used single table with row types approach, a bug could cause assignment of inadequate operation type. While you can use ci (case insensitive) collation for country/currency/language codes, you should use bin (binary) collation for GUIDs. However, we must resist the temptation. Therefore, it should safeguard that entity graph is never broken and an entire graph can always be loaded into the application business layer, i.e. Therefore, we will also add standard audit trail fields. I will update the article once I make up my mind (hopefully with your help). For the last 10+ years, I‘ve been developing an open source financial accounting application Apskaita5 for Lithuanian accountants. Despite that, we still need to define a general policy for choosing primary keys in our database model and the discussions allow identifying some guidelines for that. Performance implications of MySQL VARCHAR sizes, MySQL Performance - CHAR(64) vs VARCHAR(64). Tax specific data about financial transactions that is required to prepare a tax report. Algeria, Bahrain, Iraq, Jordan, Kuwait, Libya and Tunisia dinar). As a consequence, the current application version is far from perfection from the technological point of view, even though accountants are happy about the functionality and usability. … They are critical to data warehousing … no orphaned records, no incomplete entity graphs. ERP could be described as a database software package that supports all of a business's processes and operations including … It includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements. The first use case is not compatible with the simplicity requirement. E.g., it will happen to my application Apskaita5, because the current version does not have one common table for source document data (many tables depending on the document type) and the application we design there will be. The same is true for common numeric formatting (e.g. Where applicable, use financial or tax accounting terms – they are short and their meaning is well defined in the domain of the application, e.g.. Where financial and tax terms are not applicable, use terms common in general applications, e.g.. Use plural form of the business entity stored in the table, e.g.. Use all lowercase table names, where words are separated by an undescore "_" – It’s quite convenient for an eye, does not require too many extra symbols and avoids case sensitivity bugs, e.g., Do not use any prefixes or postfixes – the application will not have any distinct modules with similar tables where prefixes could be beneficial (for now – trust me on that :) ), Max length = 64 chars – [table name length] - 5 chars (see index name length limitations). Otherwise, we wouldn’t meet the expectations of the users and we definitely don’t want that. “Last resort” – because it’s next to impossible to implement intelligible and regionalizable exception messages. Since these columns are attributes of the entity, they obviously have business meaning. I believe this is a controversial idea. I have checked average lengths of most common textual fields in a real accounting database and found out the following values: It is also notable that an average text page contains around 4.000 characters (including blank spaces). Furthermore, in this case, database per tenant model allows both horizontal and vertical scaling while the single database model would only allow vertical scaling. The good thing is that I learned a lot from my mistakes. If an entity id is an auto incremented integer, there could be some cases when the application requires changing them, which in turn breaks the external systems. The first case would be merging of the companies databases. Especially promising is the fact that you are financial pro (lawyer/accountant?) When dealing with VARCHAR type strings their max length should be set in a balanced way. It’s better to spend some time on google, than have an incident when some company gets an invoice from a Bahrain company. It's also worth mentioning, that MySQL collation is also applicable for ENUM fields. Fortunately, the cases are extremely rare: Type of data to use for text fields actually depends on a specific RDBMS used. The part of recording of financial (transactions) data is also called bookkeeping. One difference is I come from a CPA/CFO/Controller/IT background, and may have a little different perspective. Some points are left for future consideration. It includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements. It is perfectly ok to have two absolutely identical rows for invoice items (lines): same invoice, same goods/services, same amount, same price, etc. The starting and ending of every accounting aspects. In such a case, the external system can only resolve entities already imported (documents, transactions, etc.) For a given time period this may include, but is not limited to, real … After such edits happened, the type recovery (“undo fallback”) on reinstall will break the extension. When combined with the database per tenant (company) requirement, it means that the company database should hold (meta-) data about the extensions used (installed). some suggestions... Re: thank you! There is a stakeholder who feeds information into the system, collects, analyses, reports, etc and there is another person(stakeholder) who needs information. The database model to be developed will be for a very specific purpose – financial accounting. On the contrary, such cases should be documented along with the database schema to allow a business layer developer to implement an audit routine (method, cron job, etc.) Tax accounting is defined as a structure of accounting methods focused on taxes rather than the appearance of public financial statements. Accounting in general, and accounting reports in particular are not just a clearance of what revenue and what expenses you are getting. Next, we need the following basic information about the each extended operation type: Though all the tables for each extendable operation will be the same, it would be very unwise to give in to temptation, use one table with an additional column “operation type”. Nice article ! Even though the database model will be specifically fitted for Lithuanian legal background for financial accounting, the financial accounting itself is very uniform across jurisdictions. 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