When we think of what we own, weather we are a company or an individual, we regard this as a system. MMEX helps us to control this system.
We receive money - Income
We spend money - Expenses
When we give money to a friend or client, we potentially still own that money although we don't actually have it.
When money is paid back to us, money is transferred back to our regular accounts. This way we can keep track of how much money is owed to us.
Note: Loan accounts work with respect to us, and not the client. This means that when we open the client file, the transactions are reversed.
This means that we see a deposit for money owing to us and Withdrawals when money is returned.
When we add extra charges we create a withdrawal transaction in their account. (More money is owed to us)
If we give them a discount, we would create a deposit in their account (less money owed to us)
If we want to set up regular instalments, we can use recurring transactions to set deposit, withdrawal or transfer transactions accordingly.