General Ledger & Double-Entry Accounting Architecture

At the heart of BIZA is an immutable, double-entry financial core. Every operational transaction—whether an invoice, supplier payment, inventory adjustment, or payroll run—posts balanced debits and credits directly to the General Ledger.

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1. Hierarchical Chart of Accounts (COA)

BIZA supports a multi-level, parent-child Chart of Accounts designed for regional compliance (Saudi Arabia, UAE, India) while remaining fully customizable.

Root Account Categories

1. Assets (1000): Current Assets (Cash, Bank, Accounts Receivable, Inventory), Fixed Assets, and Accumulated Depreciation.
2. Liabilities (2000): Accounts Payable, Accruals, Retention Payable, and Tax Liabilities (Output VAT Payable).
3. Equity (3000): Share Capital, Retained Earnings, and Owner Drawings.
4. Revenue (4000): Operating Sales, Service Fees, Project Billings, and Other Income.
5. Cost of Goods Sold (5000): Direct Material Purchases, Landed Shipping Costs, Direct Project Labor, and Inventory Adjustments.
6. Expenses (6000): Administrative, Rent, Utilities, Depreciation, and Marketing.

Each account carries:

• Account Code & Name: Fully bilingual (English & Arabic).
• Account Type: Determines behavior on financial reports.
• Currency: Multi-currency accounts (e.g., USD bank account or EUR supplier ledger).

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2. Inviolable Double-Entry Integrity

The ledger enforces mathematical integrity at the database level:

• Zero-Sum Assertion: A journal entry cannot be posted unless total Debits equal total Credits: $$\sum \text{Debits} - \sum \text{Credits} = 0$$
• No Direct Row Mutation: Posted ledger transactions cannot be edited in place. Any correction requires a formal reversal or adjusting journal entry, preserving the complete historical audit trail.
• Fiscal Periods & Hard Locking: Close past months or financial years to prevent retroactive journal postings.

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3. Multi-Currency Accounting & FX Tracking

For businesses dealing with cross-border trade:

• Base Workspace Currency: Typically SAR, AED, USD, or INR.
• Transaction Currency: Record invoices or bills in foreign currencies (EUR, GBP, USD, etc.).
• Realized FX Gains/Losses: Automatically calculated upon invoice settlement when the exchange rate between issue date and payment date fluctuates.
• Unrealized FX Revaluation: End-of-period revaluation of foreign currency bank accounts and open receivables/payables.

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4. Automated Financial Reporting

Financial statements update live with zero batch-processing delays:

• Balance Sheet: Real-time summary of Assets, Liabilities, and Equity.
• Profit & Loss (Income Statement): Operating margins, gross profit, and net profit by custom date range, branch, or project cost center.
• Trial Balance: Full listing of debit and credit balances across all active accounts for period verification.
• General Ledger Statement: Chronological audit statement for any account with opening balances, running balances, and voucher drill-down.