Glossary
Ledger
The immutable record of every financial movement in a system, from which all balances are derived.
In financial software the ledger is the system of record. Balances are not stored as editable numbers; they are computed from the sequence of entries that produced them. Corrections are made by posting new entries, never by rewriting history.
This is what makes a platform auditable. Any balance, at any point in time, can be reconstructed and explained, and any discrepancy can be traced to the entries that caused it.
What it covers in practice
- Entries are immutable; corrections are new entries
- Balances are derived, not stored and edited
- Enables point-in-time reporting and audit