System for recording business accounting transactions (BAT) to specified journal (ASRAT)

Abstract

A system (ASRAT) for recording business accounting transactions (BAT) in a designated journal through a computer implementation system is used for recording various business accounting transactions based on a unique identification number (BAT-ID / extended BAT-ID), and is characterized by comprising a server computer, the server is equipped with a processing unit, a scanning device, a network port, one or more data storage units / access units, and an accounting system configured according to the invention, comprising: a system for assigning unique identification numbers for various business accounting transactions (i.e. Business accounting transaction identification numbers), the numbering module is used for numbering a plurality of business accounting transactions of a specific category; the invention also provides a system for recording the business accounting transaction based on the BAT-ID or the extended BAT-ID. The identification number can be obtained by taking a scanning device as an input mechanism or through any other input mechanism; the system is configured to identify a BAT-ID and / or an extended BAT-ID specified / identified by a user for a particular accounting document, and to record the document as a business accounting transaction therefrom. Therefore, the recording (data entry) of the transaction can be completed only by filling necessary transaction detail information in the preset format related to the accounting transaction of the type of business and selecting the corresponding accounting subject from the predefined accounting subject group / subgroup driven by the system.

Description

TECHNICAL FIELD

[0001] The present invention relates generally to the field of information management, identification and coding systems. The invention relates particularly to a standard system that structures, manages, classifies and records accounting transactions to designated journals through a computerized mechanism. The invention also relates to a process of creating a unique identification number (BAT-ID) for each type of business accounting transaction (BAT) in order to record the BAT transaction to the designated journal. BACKGROUND

[0002] Accounting is an age-old concept. Initially, accounting books were maintained manually. Technological advancements have enabled software driven accounting. The objectives of accounting include recording business transactions and processing the recorded data to provide the required outputs, i.e. financial statements / Management Information System (MIS) reports to the stakeholders. There are numerous stakeholders (both internal and external) of the accounting system who require the above mentioned outputs as a basis for various analyses, decision making, compliance and other purposes. The accounting system or accounting cycle has two end points and three main stages. The two end points are the input / entry end and the reporting end, and the three stages are:

[0003] (i) The input end involves recording accounting transactions to the appropriate and relevant accounting accounts in the journals (also known as subsidiary books) in accordance with the applicable accounting rules and principles.

[0004] (ii) The processing involves posting the data recorded in the journals to well-defined accounting accounts under various groups / sub-groups. The processing also includes preparing trial balance and ensuring the arithmetic accuracy of the recorded data.

[0005] (iii) The output end involves preparing financial statements, ratio analysis, Management Information System (MIS) reports, etc.

[0006] Currently, the input end of the accounting system is lacking in terms of a well-defined standard structure, classification system, standard method and system for recording transactions to well-defined journals at the data entry level. On the other hand, the output end of the accounting system has been extensively worked upon by various globally reputed accounting bodies, such as:

[0007] Annexure VI of the Companies Act, 1956, India,

[0008] Tax Audit Format introduced by the Income Tax Department, India,

[0009] IFRS (International Financial Reporting Standards),

[0010] The above mentioned laws or bodies related to accounting, finance or taxation have done a lot of work in standardizing the reporting system, but there is still a lack of standardization in the input side of the accounting system. The accounting processing part, which is between the input side and the output side, is mainly driven by software.

[0011] The present invention aims to provide a system for structuring and classifying the contents related to the input side of accounting and standardizing the system for recording accounting transactions in a well-defined journal.

[0012] There are several accounting course management bodies globally and most countries have their own accounting management bodies. In India, the Institute of Chartered Accountants of India and the Income Tax Act are the bodies that specify the various books of account that a business entity is required to maintain during the accounting process and the compliance process. For reference, the relevant portions of the documents of the above bodies are discussed below in Part A and Part B.

[0013] Reference Part A: According to Rule 6F(2) of the Income Tax Act, India, in accordance with Section 44AA(3), the books of account and other documents that certain persons are required to keep and maintain.

[0014] According to Section 44AA(3), the books of account and other documents that certain persons engaged in certain professions are required to keep and maintain.

[0015] 6F(2) The books of account and other documents referred to in clause (1) include the following, namely:

[0016] 1. Cash book;

[0017] 2. If the accounts are maintained on the accrual basis, a journal shall be maintained;

[0018] 3. Ledger

[0019] 4. Duplicate copies of invoices issued by the person, whether or not numbered consecutively by machine or otherwise, and duplicate copies or carbon copies of receipts or challans numbered consecutively by machine or otherwise, issued by him:

[0020]

but this clause shall not apply to amounts not exceeding twenty-five rupees;

[0021] 5. Original invoices issued to the person and the receipts in respect of which the expenditure is incurred; if no such invoices and receipts are issued and the amount of expenditure does not exceed fifty rupees, a payment voucher shall be prepared and signed by the person:

[0022] Reference Part B: Training Material: "Introduction to Transaction Accounting - with reference to MGNREGA Scheme" was jointly launched by the Ministry of Rural Development, Government of India and the Professional Development Committee of the Institute of Chartered Accountants of India in July 2014. Chapter 7 sets out the requirements for subsidiary books and states the following:

[0023] Types of subsidiary books:

[0024] 1. Purchase book records only the purchases of goods on credit by the trader.

[0025] 2. Sales book is used only to record the sales of goods on credit by the trader.

[0026] 3. Purchase returns book records the goods returned by the trader to the supplier.

[0027] 4. Sales returns book records the goods returned by the customer (previously sold).

[0028] 5. Notes payable book records the receipt of notes (bills receivable).

[0029] 6. Notes payable book records the issue of notes (bills payable).

[0030] 7. Cash book is used only to record cash transactions, i.e. cash receipts and cash payments.

[0031] 8. General journal is used to record entries which cannot be recorded in the subsidiary books mentioned above.

[0032] As mentioned in Reference Part A and Reference Part B above, the types of journals used in accounting have a long history and are limited in number (subsidiary books). The above-mentioned books have been used for a long time. However, the limitation of these accounting journals is that they are not sufficient to meet the specific needs of various types of business transactions or related business accounting transaction categories. Due to these limitations, there is confusion about what type of business transaction is recorded in which journal. The present invention proposes a "system for recording specific categories of business accounting transactions in specific journals".

[0033] In addition, there are the following contradictions between the provisions of the Income Tax Act and the provisions in the study material of the Institute of Chartered Accountants of India (ICAI):

[0034] In the ICAI Learning Material referred to in Part B above, under the heading "Listing of Journals", at serial number 8, the Journal Proper is stated as: "The Journal Proper is used to record entries which cannot be recorded in any of the subsidiary ledgers mentioned above". Thus, according to the ICAI, the Journal Proper is akin to a default ledger for recording all transactions which cannot be recorded in the specific journals listed at serial numbers 1 to 7. However, Section 6F(2)(ii) of the Income-tax Act, as referred to in Part A above, states as follows:

[0035] "(ii) If the accounts are maintained on an accrual basis, a journal shall be maintained". Thus, according to the Income-tax Act, a journal is only required to be maintained by an entity which follows the accrual basis of accounting; whereas, according to the ICAI, a journal is a default ledger for recording all entries which cannot be recorded in the specific journals.

[0036] According to the Income-tax Act, the purpose of the Journal Proper is limited to journal entries which are required to be made due to the adoption of the accrual basis of accounting, and therefore, this ledger should not be used for recording transactions relating to business transactions.

[0037] The explicit structuring, classification and standardization of any task, matter, process, work or activity is a part of modern civilization, for example:

[0038] HSN Code: - HSN stands for Harmonised System of Nomenclature, which is a globally accepted coding system and harmonized system of describing goods. It was introduced by the World Customs Organization in 1988. The HSN code system is extensive and covers all goods traded globally. The use of HSN codes has made international trade more convenient. In India, HSN codes were used for the purposes of the Central Excise, Customs and State Value Added Tax (VAT) laws, and are used for the classification of products / goods under the Goods and Services Tax (GST) law. Similarly, in the global context, most countries have adopted HSN codes for the purposes of formulating tax rates and related laws.

[0039] IFRS provides detailed rules on how companies should prepare their financial statements. The development of these standards aims to establish a uniform accounting language that can be understood by global investors, auditors, government regulators, and other relevant parties.

[0040] The standards aim to bring consistency to the language of accounting, accounting practices, and financial statements, and to help businesses and investors make informed financial analysis and decision-making.

[0041] These standards were developed by the International Accounting Standards Board (IASB), a nonprofit organization based in London, called the IFRS Foundation. The Foundation's goal is to develop standards that "bring transparency, accountability, and efficiency to global financial markets."

[0042] IFRS standard requirements: — IFRS covers a wide range of accounting activities. In certain business practices, IFRS sets forth mandatory rules.

[0043] Statement of Financial Position: also known as the balance sheet. IFRS affects the presentation of the various components of the balance sheet.

[0044] Statement of Comprehensive Income: It may be presented as a single statement or as a separate statement of income and other income (including property and equipment).

[0045] Statement of Changes in Equity: Also known as the statement of retained earnings, it is used to record changes in a company's earnings or profits during a specific accounting period.

[0046] Cash Flow Statement: This report summarizes the company’s financial transactions during a specific period and categorizes cash flows into operating activities, investing activities, and financing activities.

[0047] As can be seen from the above examples (provided for reference only and not intended to include any content within the scope of the claims of this application), when a well-defined structure and standard system is established for a specific task, it will bring convenience, higher relevance, better understanding, compatibility, meaningful comparison, effective management information system, and facilitate the analysis required for management decision-making. It will also help avoid a large amount of repetitive work at each level and improve clarity.

[0048] Purpose of the invention

[0049] The main objective of this invention is to establish a standard system for recording accounting transactions through a computerized mechanism that structures, classifies, manages, and records accounting transactions in designated journals.

[0050] Another objective of this invention is to provide a unique, convenient, and efficient system for recording accounting transactions to clearly defined journals, making accounting more systematically driven, and by creating a unique identifier (BAT-ID) for each clearly defined Business Accounting Transaction (BAT) category, so that BAT transactions are recorded to clearly defined designated journals and matched with predefined accounting account groups, thereby minimizing decision-making at the data entry level.

[0051] Another object of the present invention is to provide a designated journal system for recording various types of business accounting transactions, thereby introducing new journals into the accounting system for recording business accounting transactions. The system also includes a process for assigning identification numbers to such accounting transactions and related journals and business accounting transactions.

[0052] By incorporating additional fields related to MIS into the journal itself, the accounting system becomes more dynamic to meet stakeholder reporting requirements.

[0053] The objective of this invention can be more clearly understood through detailed description. Summary of the Invention

[0054] This invention relates to a computer-based system for recording various business accounting transactions based on a unique identifier (BAT / Extended BAT-ID), characterized in that:

[0055] A server computer equipped with a processing unit.

[0056] A scanning device.

[0057] A network port,

[0058] One or more data storage units, and one or more access units, and an accounting system built based on the ASRAT system described in this invention, comprising:

[0059] [A] A system for assigning a unique identifier (BAT-ID / or extended BAT-ID) to each type of business accounting transaction, for assigning identifiers to multiple business accounting transactions of a specific category, configured as follows:

[0060] — The single digit of the identification number indicates the type of account to which the BAT-related transaction belongs;

[0061] — The first two digits (including the first digit) represent the identification number of the underlying accounting ledger or the journal used to record such transactions;

[0062] — The last digit indicates the nature of the business transaction involved in each type of Business Accounting Transaction (BAT), and is used to determine whether the other party is a payer or a payee;

[0063] When a user selects to record transactions based on the BAT-ID system, and

[0064] When a user selects to record transactions based on the extended BAT-ID system,

[0065] It also includes individual accounting detail ledgers that require debit / credit.

[0066] [B] A system for recording business accounting transactions based on BAT-ID or extended BAT-ID, wherein the BAT-ID or extended BAT-ID is obtained via a scanning device as an input mechanism or via any other input mechanism, and the system is configured to identify the BAT-ID and / or extended BAT-ID specified / recognized by the user for the accounting document to be recorded, and record it as a business accounting transaction, wherein:

[0067] 1. When a user selects to record transactions based on BAT-ID and receives BAT-ID input via scanning or any other input mechanism (as described in paragraph C below), the system is configured to automatically perform the following operations:

[0068] The system drives the selection of relevant designated journal entries to record accounting transactions for this type of business.

[0069] The system drives the selection of a predefined "basic accounting general ledger account group / subgroup" for debiting or crediting accounting transactions of this type.

[0070] The system drives the selection of the identity status of accounting personnel involved in this type of business transaction based on the nature of the transaction, either as the payer or the payee.

[0071] The system drives the selection of a predefined "relevant personal accounting account group" for debiting or crediting such business accounting transactions.

[0072] It also provides a specified format applicable to this type of BAT category transaction for filling in the required details.

[0073] and / or

[0074] 2. When a user selects to record a transaction based on the Extended BAT-ID and receives the Extended BAT-ID input via scanning or any other input mechanism (as described in paragraph C below), the system is configured to automatically perform the following operations:

[0075] The system drives the selection of relevant designated journal entries to record accounting transactions for this type of business.

[0076] The system drives the selection of a predefined "basic accounting general ledger account group / subgroup" for debiting or crediting accounting transactions of this type.

[0077] The system drives the selection of the identity status of accounting personnel involved in this type of business transaction based on the nature of the transaction, either as the payer or the payee.

[0078] The system drives the selection of a predefined "relevant personal accounting subgroup" for debiting or crediting such business accounting transactions.

[0079] It also provides predefined formats applicable to accounting transactions of this type of business, for filling in the required information.

[0080] III. Complete the transaction record (data entry) process.

[0081] Only by providing further details / information / values / data related to this type of business accounting transaction in the given predefined format, and

[0082] Select the relevant accounting entries from the predefined accounting entry groups / subgroups selected by the system driver.

[0083] [C] Input Mechanism: — BAT-ID or Extended BAT-ID can be obtained by the system through any of the following input mechanisms:

[0084] Scan the BAT-ID or extended BAT-ID marked by the user on the accounting document, and / or

[0085] Manually enter the BAT / Extended BAT-ID in the system, and / or

[0086] Select the relevant category from the list of all BAT-IDs or extended BAT-IDs configured in the user's accounting system.

[0087] The various aspects and concepts of this system can be further understood through the detailed description and accompanying diagrams. Attached Figure Description

[0088] A better understanding of the invention will be achieved by reading the following detailed description of presently preferred embodiments of the invention in conjunction with the accompanying drawings, in which features, other aspects, and advantages of certain exemplary embodiments of the invention will become more apparent. The drawings include:

[0089] Figure 1 This paper presents a system for recording BAT transactions based on BAT-ID / Extended BAT-ID.

[0090] Figure 2 The input mechanism is shown.

[0091] Figure 3 The portal operating system for “Recording Business Accounting Transactions (BAT) Category to a Specified Journal (ASRAT)” is shown.

[0092] Figure 4 Module 01 is shown: Accounting Transaction Classification System.

[0093] Figure 5 Module 02 shows the business transaction classification process based on the subject matter and its nature.

[0094] Figure 6 Module 03 is shown: Business Accounting Transaction Classification System.

[0095] Figure 7 Module 04 is shown: a system that assigns a 2-digit identification number to the basic accounting ledger group for each type of business accounting transaction.

[0096] Figure 8 Module 05 is shown as a system that assigns a 2-digit identification number to each type of business accounting transaction for a relevant personal accounting account group.

[0097] Figure 9 Module 06 is shown: a system for assigning a 2-digit identification number to journal entries.

[0098] Figure 10 Module 07 is shown: Create a system with a 3-digit BAT-ID.

[0099] Figure 11 Module 08 is shown: Creates a system with a 7-bit extended BAT-ID.

[0100] Figure 12 The standard BAT-ID and extended BAT-ID generated according to modules 05 and 06 are shown.

[0101] Figure 13 Module 09 is shown: a system that assigns a 4-digit identification number to the sub-accounts of each basic accounting account group.

[0102] Figure 14 Module 10 is shown as a system for assigning 4-digit identification numbers to sub-accounts of relevant personal accounting account groups.

[0103] Figure 15 Module 11 is shown as a system that provides an 11-digit (or more digits as selected by the user) identification number for accounting entries in basic subgroups / groups under various business accounting transactions.

[0104] Figure 16Module 12 is shown as a system that provides an 11-digit (or more digits as selected by the user) identification number for accounting entries in relevant subgroups / groups of individuals under various business accounting transactions. Detailed Implementation

[0105] The detailed description, taken in conjunction with the accompanying drawings, explains the various methods, features, and functions of the disclosed system. In the drawings, unless the context otherwise requires, the same symbols denote the same parts. The exemplary embodiments described herein should not be considered limiting. It should be understood that certain aspects of the disclosed system can be arranged and combined in a variety of different configurations, and this document does not exhaust all possible configurations.

[0106] Therefore, those skilled in the art will recognize that various changes and modifications can be made to the embodiments described herein without departing from the scope of the invention. Furthermore, for clarity and brevity, well-known functions and structures are not described in detail.

[0107] Features described and / or illustrated in one embodiment may be used in the same or similar manner in one or more other embodiments, and / or in combination with or in lieu of features of other embodiments.

[0108] The terms and words used in the following description should not be limited to their literal meanings, but are used only to achieve a clear and consistent understanding of the invention. Therefore, those skilled in the art will understand that the following description of exemplary embodiments of the invention is for illustrative purposes only and is not intended to limit the invention.

[0109] It should be understood that, unless the context clearly specifies otherwise, the singular forms “a,” “one,” and “the” also include the plural meaning.

[0110] It should be emphasized that the term "comprising / including" as used in this specification means that the stated feature, element, step, or component is included, but does not exclude the presence or addition of one or more other features, steps, components, or combinations thereof. The formulas used in this specification are for calculation purposes only.

[0111] This invention relates to a system for recording and managing accounting transactions. The system includes a server computer equipped with a processing unit, a network port, a scanning device, one or more data storage units, and one or more access units. An accounting system, based on the system and transaction classification described in this invention's ASRAT, is used to record specific categories of accounting transactions to designated journals. This system operates through a set of hardware and software capable of understanding computer-executable languages, instructions, and commands, and is used to record / process data acquired through the ASRAT system and BAT-ID.

[0112] An accounting system built upon the system and transaction classification described in this invention ASRAT includes the following components:

[0113] Explanation Section 1: Structured and Classified System and Method for Accounting Transactions: According to this system, all transactions in accounting can be broadly classified and structured based on the following criteria: "Does the transaction to be recorded involve another person (as a payer or payee)?" If the answer is "yes," the transaction belongs to Category I as described below; otherwise, it belongs to Category II.

[0114] Category 1 accounting transactions include accounting transactions arising from business dealings with another party, where the transaction to be recorded involves that other party, whether as a payer or a payee, and the subject matter includes goods, services, fixed assets, investments or funds, or other matters (subject matter of the transaction). Such business dealings with another party may be referred to as "business accounting transactions (BAT)".

[0115] The second category of accounting transactions includes those related to journal accounting adjustments in which another party is not directly involved as the payer or payee of the transaction. These transactions may be referred to as "journal accounting adjustment" related transactions or "journal accounting transactions (JAT)".

[0116] Table 1: Accounting Transaction Categories

[0117]

[0118] Section 2: Structured, Classified, and Coding System and Method for Business Transactions Based on the Transaction Subject: Based on the transaction subject, any business accounting transaction related to a business transaction can be further classified according to the subject matter involved, including but not limited to goods, services, fixed assets, investments, funds, or other matters. Based on the transaction subject, business transactions related to a business transaction can currently be further divided into five categories, as shown in the table below.

[0119] The ASRAT system also provides a system for assigning a unique code to each type of transaction to facilitate user understanding and improve clarity. This system assigns a three-letter code to each type of transaction, where the last letter identifies the subject matter of the transaction.

[0120] Table 2: Business Transaction Categories and Related Codes

[0121]

[0122] The system is shown in Figure 05.

[0123] Any new business transaction category can be further added for any new target and can be called "Target-Specific Transaction", and a corresponding code can be assigned accordingly.

[0124] Explanation Section 3: Business Transaction Nature Classification System and Coding Method: In any business transaction, the subject matter of the transaction, as classified in Table 2, is either acquired by the business entity from another person (inflow transaction) or provided by the business entity to another person (outflow transaction). Therefore, based on its nature (acquisition / providalization), any business transaction can be classified according to the following table.

[0125] Classifying business transactions by nature helps to easily identify the identity status of relevant personnel (as payer or payee) in any BAT transaction. Any BAT transaction, as an accounting transaction involving another person, must, under double-entry bookkeeping, have one of the two accounts being the personal account with which the transaction takes place. Therefore:

[0126] In any BIT transaction, if the subject matter of the business transaction is acquired by a corporate entity, the individual account should always be credited, as the other party is the payer.

[0127] In any BOT transaction, if the subject of the business transaction is provided by a corporate entity, the individual account should always be debited, as the other party is the recipient.

[0128] Clear identification of an individual's status helps in determining whether to debit or credit an individual account. The two types of business transactions can be assigned a three-letter code and a one-digit identification number, as follows:

[0129] Table 3: Business Transaction Nature and Related Codes and Identifiers

[0130]

[0131] The system is shown in Figure 05.

[0132] Explanation Section 4: Structured, Defined, Classified, and Coding Systems and Methods for Business Transactions:

[0133] This system classifies business transactions based on the following two factors:

[0134] The subject of the transaction (as described in Section 2); and

[0135] The nature of the transaction (as described in section 3).

[0136] As described in step 2 above, business transactions are currently categorized into five types based on their subject matter; as described in step 3 above, each business transaction involves the subject matter either being acquired from another party (inflow nature) or provided to another party (outflow nature). As part of a business transaction, a business transaction is formed when any subject matter is actually given or acquired. Therefore, a business transaction is the result of the execution of a business transaction. Thus, in any business transaction involving any of the five types of subject matter (i.e., goods, services, fixed assets, investments, or funds), the subject matter is either acquired or provided, currently forming 10 (5 × 2) types of business transactions, as detailed in Table 4 below:

[0137] Table 4: Business Transaction Categories and Related Codes

[0138]

[0139] The system is shown in Figure 05.

[0140] If any new target item is added, a corresponding type of business transaction can be added accordingly. For each new target item, two types of business transactions will be added, and a three-letter code will be assigned by a system that combines the last letter of the business transaction code with the last two letters of the business transaction nature code, as described above.

[0141] Other revenue-generating business transactions related to BAT transactions: In addition, there are certain BAT transactions that arise from the ownership or holding of certain fixed assets or investments. These transactions are recorded as other revenue-generating transactions because the underlying assets (i.e., fixed assets or investments) themselves do not involve a transaction; therefore, there is no outflow or inflow of these assets. These transactions generate certain income from the ownership / holding of these assets and are recorded as other income, as detailed below.

[0142] Therefore, this system classifies business transactions into a total of eleven categories, including other revenue-generating business transactions as the standard business transaction category, and other categories can be further added according to the ASRAT system.

[0143] Part 5: Structured, Defined, Classified and Coding System and Methodology for Business Accounting Transactions (BAT) Related to Various Business Transactions: In the accounting system, any business transaction that affects the revenue / expenses / assets / liabilities of a business entity should be recorded in the relevant journal under the name of "accounting entries".

[0144] This system classifies the business transactions defined in step 4 into multiple business accounting transactions (BAT) based on the following logical process (the process of associating account group / subgroup categories with business transaction categories), as detailed in Tables 5 and 5.1 below. This process is called the BAT process, and is as follows:

[0145] Every business transaction will have an impact on revenue / expenses / assets / liabilities.

[0146] Revenue / expenses / assets / liabilities can be further subdivided into several subcategories according to the reporting structure or financial statement presentation requirements. Therefore, the business accounting transaction classification process in the system described in this invention is guided by the reporting end or financial statement structure / format requirements. The BAT classification process is the process of associating the structure or format requirements of the reporting end with the relevant business transactions.

[0147] Every business transaction constitutes a business transaction upon execution. Business transactions affect revenue / expenses / assets / liabilities and must be recorded in different groups / accounts in financial statements or reports provided to various stakeholders. Therefore, this system provides a classification method for business accounting transactions, allowing its grouping to meet the requirements of financial statements or other reporting structures.

[0148] BAT Classification and Coding System: Based on the invention of ASRAT, this system classifies BAT-related transactions in the following manner:

[0149] Each type of BAT transaction corresponds to a well-defined underlying accounting group / subgroup, which represents a specific type / subtype of revenue / expense / asset / liability. (Table 5.1)

[0150] Each type of BAT transaction can also correspond to a clearly defined relevant accounting group / subgroup, which represents a specific type / subtype of revenue / expense / asset / liability. (Tables 5.1 and 7.1.C)

[0151] Each type of BAT transaction can be recorded using one of the four accounting rules defined by the AKS Accounting Rules. The following four AKS Accounting Rules are listed for reference only:

[0152] -AKS Rule 1: Debit the payee and credit the outflow item.

[0153] -AKS Rule 2: Debit the inflow item and credit the payer.

[0154] -AKS Rule 3: Debit fees, credit service providers / suppliers / beneficiaries.

[0155] -AKS Rule 4: Debit the recipient of the goods / services / beneficiary and credit the revenue.

[0156] Each type of BAT transaction has a dedicated journal for recording related transactions (Table 6.2).

[0157] This classification method helps to provide convenient grouping for reporting requirements and to standardize the accounting transaction record system.

[0158] This system also assigns codes to each type of business accounting transaction as follows:

[0159] Table 5.1: Business Accounting Transaction (BAT) Categories and Code Allocation System for Various Business Transactions:

[0160]

[0161]

[0162] The system is shown in Figure 06.

[0163] The above BAT transaction categories are listed to illustrate the business accounting transaction classification process claimed in this invention, and are limited to the above categories. Similarly, any number of BAT categories can be further added to each business accounting transaction category, and codes can be assigned by adding a 2-digit consecutive serial number after the relevant business transaction category.

[0164] 5.2 Other Income Transactions (OIT) Category BAT: As described and defined above, other categories of BAT transactions may also occur when such BAT transactions do not involve the acquisition or provision of the underlying asset itself. These types of BAT transactions occur because:

[0165] Temporarily using fixed assets for non-business purposes, or

[0166] It arises from having investments or funds.

[0167] This type of BAT transaction can be defined as "BAT transactions under other revenue transaction categories", as detailed in the table below:

[0168] Table 5.2 Other revenue transaction categories of BAT transactions (related to business dealings):

[0169]

[0170] 5.3 Debit / Credit Notification Books as Journals: Furthermore, debit / credit notification journals resemble journal accounting transactions involving individual accounts (such as accounts payable / accounts receivable / lenders, etc.). Since transactions related to debit / credit notifications do not involve the actual granting or receiving of the subject matter, but rather arise from a benefit or advantage that is attributable to another person (from this entity) or to this entity (from another person), such transactions are considered journal accounting transactions related to another person. The accounting transactions related to such journals are as follows:

[0171]

[0172] Table 5.3 Journal Accounting Transactions Involving Individual Accounts Through the Debit / Credit Notice Book: — (excluding transactions involving goods, services, fixed assets, investments or funds or any other underlying assets)

[0173]

[0174] Section 6: A designated journal system for recording various BAT (Business Accounting Transactions) transactions, and a system for assigning identification numbers to each journal:

[0175] A journal is where accounting transactions are recorded. ASRAT provides a system for recording specific categories of BAT transactions into a designated journal. This process is illustrated through the following steps:

[0176] [A] List of currently used ledgers (shown for reference only in this invention):

[0177] The following are ledgers that have been used for specific transaction purposes:

[0178]

[0179] The aforementioned journal entries are currently widely used. Furthermore, referring to the training materials cited in Part B above, "MGNREGA Scheme – Jointly Initiated by the Indian Ministry of Rural Development and the Professional Development Committee of the Institute of Chartered Accountants of India" (published in July 2014), Chapter 7 lists the following subsidiary ledgers:

[0180] 1. Types of auxiliary ledgers:

[0181] 2. The sales book is only used to record goods sold on credit by the dealer.

[0182] 3. The purchase return book records the goods returned by the trader to the supplier.

[0183] 4. The sales return book records goods returned by customers (previously sold).

[0184] 5. The accounts receivable book records the acquisition of notes (accounts receivable).

[0185] 6. The accounts payable book records the issuance of notes (accounts payable).

[0186] 7. The cash book is used only to record cash transactions, namely cash receipts and cash payments.

[0187] 8. A general journal is used to record entries that cannot be recorded in the above-mentioned subsidiary ledgers.

[0188] Regarding the journal system listed in the above learning materials, there are two issues that need to be addressed.

[0189] - The aforementioned auxiliary ledgers are insufficient to meet the specific needs of certain types of accounting transactions and their corresponding record formats.

[0190] - Journal entries should not be used as the default ledger, but should only be used for year-end entries or entries required to enable the accounting process to be completed on an accrual basis.

[0191] Therefore, it is necessary, as part of this invention, to introduce a new journal category in order to provide a well-defined designated journal for recording the following types of BAT transactions:

[0192]

[0193] Currently, the lack of a designated journal for the aforementioned types of business transactions leads to confusion and ambiguity, causing users to often choose any journal (such as a purchasing book, sales book, bank book, or general journal) to record these transactions. Introducing the new journal mentioned above would help establish a clearly defined method for recording business accounting transactions, achieving standardization by providing a designated journal for relevant business dealings.

[0194] [B] The new journal ledger and its related BAT categories introduced as part of the claims of this invention are as follows: To realize a system for effectively recording various BAT transactions to a designated journal ledger, we introduce the following journal ledger:

[0195] Table 6.1: Details of the New Journal and Related BAT Categories

[0196]

[0197] The system also stipulates that when a new BAT transaction category is established for any new target item, a new journal entry category can be added accordingly.

[0198] [C] The journal configuration described above includes an additional built-in field system to enable effective management information systems, inspection, and control:

[0199] This system features a unique characteristic: the inclusion of multiple independent additional fields within the journal to facilitate information management, inspection, and control. This setup makes the journal more dynamic, aiming to provide stakeholders with an improved reporting system and enhanced inspection and control mechanisms.

[0200] As an example, we illustrate three additional fields that we propose to set up for the "Purchased Services / Expenses Journal," and explain the purpose of each field and how it will make the accounting system more dynamic than the existing system.

[0201] This system is configured to embed specific fields (in addition to the regular fields of the journal) in a specified format for the "Purchased Services / Expenses Journal," as follows:

[0202] - Next Due Date Field for Related Fees: This field reminds stakeholders when the fee is due for payment. This setting allows users to use the system to identify important due dates, such as insurance premium due dates, Goods and Services Tax (GST) payment due dates, and prepaid tax due dates.

[0203] - The period to which the fee belongs: enables users to:

[0204] Calculate prepaid expenses that exceed the fiscal year or the accounting period covered by the financial statements.

[0205] Identify expenses that, while relating to the accounting period covered by the financial statements, were incurred on a date prior to or after that period.

[0206] - Expense Related Master File Identifier field: Enables users to group expenses to specific fixed assets, departments, or products.

[0207] - Any additional fields in the ledger: as needed by the user.

[0208] The necessity of the aforementioned new journal categories is summarized below:

[0209] This will enable the recording of specific types of business transactions in designated journals. These transactions are recurring and involve specific categories of business dealings. Such transactions may constitute a significant proportion of a company's total transactions. Currently, there is a lack of a system to clearly define which journal should record these types of business transactions in. Therefore, these types of transactions are typically recorded in purchasing / sales books, bank books, journals, or debit / credit notes. Introducing these journals will help clarify which journal should record these BAT transactions. This will make the entire accounting system simpler, more convenient, more relevant, and more transparent, and will facilitate better understanding and analysis.

[0210] Regarding specific formats required for recording transactions of a particular nature: If the transactions listed in the table above belong to a specific nature, a specific format is required for better understanding, ease of reference, enhanced analytical capabilities, and convenient recording. For example, a sales book is used to record invoices for the sale of goods. A purchase book is used to record invoices for the purchase of goods. These books have specific formats so that all relevant information and data can be easily recorded and important information can be avoided. Similarly, the five new journals introduced in this invention will serve the same purpose for the aforementioned specific types of business transactions. These transaction categories require the collection of specific detailed information / data when recording, thus necessitating the designation of journals.

[0211] Journals with more clearly defined boundaries and limited purposes: Currently, journals are used as the default ledger to record all transactions that cannot be categorized into a specific journal. The use of journals should be restricted. Journals should be classified as a specific journal for recording accounting adjusting entries, including year-end adjusting transactions and related data entries. Business transactions involving the purchase and sale of goods / services / fixed assets / funds should not be included in the scope of journals.

[0212] As mentioned above, under Rule 6F(2) 44AA(3) of the Indian Income Tax Act, journals are only applicable to organizations that adopt accrual accounting. Under the Income Tax Act, ordinary journals should not be used to record transactions related to business dealings, but only for journal entries necessary for accrual accounting.

[0213] Improved Goods and Services Tax (GST) Management: With the implementation of GST in many countries globally, it is necessary to record different categories of BAT transactions separately to achieve efficient GST accounting management and GST management for input tax deductions for different types of transactions. Currently, the recording and handling of GST-related records and their impacts are cumbersome because different users record these BAT transactions in different journals. For example, GST related to the sale of goods, sale of services, other income, and sale of fixed assets needs to be identified and recorded separately; similarly, GST related to the purchase of goods, acquisition of services or other expenses, and acquisition of fixed assets also needs to be identified separately, as the input tax deduction regimes for different categories of transactions may differ. A system that sets up designated journals for each relevant category will enable the calculation of cumulative period data for these different transactions in the corresponding journals.

[0214] By recording these transactions in the relevant journals, an improved and more efficient management information system can be achieved, for example:

[0215] The basis for recording revenue from the sale of goods may differ from that for the sale of services. For example, sales of goods are typically based on quantity and affect user inventory; while sales of services may be related to time spent or ad-hoc billing methods. Sales of fixed assets may be based on units and affect the stock of fixed assets. Therefore, these different BAT transactions require different treatment in the books.

[0216] To demonstrate the necessity of the aforementioned five new journals, we refer to the *Training Material: Introduction to Transaction Accounting* (MGNREGA Project – jointly initiated by the Indian Ministry of Rural Development and the Professional Development Committee of the Institute of Chartered Accountants of India, published in July 2014, Chapter 7) to illustrate the necessity of introducing these new journals in this invention. The aforementioned ICAI training material lists the following advantages of any particular subsidiary ledger (journal): — The advantages of establishing subsidiary ledgers are summarized below:

[0217] - Division of labor: The division of the journal creates a division of labor, enabling multiple employees to independently record the original entries in the auxiliary ledger.

[0218] - Efficiency: Division of labor also helps reduce workload, save time and stationery. It also brings the advantages of specialization, thereby improving efficiency.

[0219] - Preventing errors and fraud: Accounting work can be divided in a certain way, so that the work of one person is automatically checked by another. Through the application of internal controls, errors and fraud can be avoided.

[0220] -Easy to access: Facilitates easy access to specific items. For example, the total amount of credit sales for a month can be easily obtained from the sales book.

[0221] - Facilitates posting: Depending on the nature of the business, postings can be made from the subsidiary ledgers within the appropriate period.

[0222] The five new journal entries introduced in this claim will achieve the advantages envisioned in the above materials of ICAI.

[0223] Table 6.2: Complete list of journals (combining currently used existing journals and the new journals introduced in this invention), and the system for assigning identification numbers to such journals (for details on the journal identification number assignment system, see the description of the steps related to BAT-ID).

[0224]

[0225]

[0226] The system is shown in Figure 09.

[0227] Part 7 of the Instructions: System for Assigning Three-Digit Identification Numbers to BAT (Business Accounting Transactions): The classification of business accounting transactions and its classification logic have been described in Part 5 of the Instructions. The purpose of the BAT classification is to link each BAT category to a clearly defined group / subgroup of basic accounting ledger entries to represent a specific type / subtype of revenue / expense / asset / liability (Table 5.1), and to clearly defined related individual accounting ledger groups / subgroups to represent a specific type / subtype of revenue / expense / asset / liability (Tables 5.1 and 7.1.C), thereby facilitating the recording of BAT transactions in a dedicated journal based on one of the four rules defined in the AKS Accounting Rules. An identification number is now assigned to each BAT category transaction.

[0228] This system provides a way to record BAT transactions based on BAT-ID or extended BAT-ID, according to user selection. The process for obtaining the three-digit BAT-ID is explained in three steps as follows:

[0229]

[0230] Step 1: As part of the claims of this application, we define an identification number for each account type and link each account type to various business accounting transactions.

[0231] Table 7.1.A: Account Types and Their First-Stage Identification Numbers

[0232]

[0233] We provide a system for associating accounting subject groups / subgroups under various BAT (Baidu, Alibaba, Tencent) with their respective identification numbers:

[0234] Table 7.1.B: Basic accounting subject groups and their two-digit identification numbers under each account type, and related subgroups and their four-digit identification numbers under that group:

[0235] - The two-digit identification number of the basic accounting subject group is generated as follows: take the first digit identification number of the account type to which the BAT transaction should be recorded, and then add a single number as the serial number to each accounting subject group under the account type.

[0236] - This two-digit identification number also serves as the identification number for the relevant journal entries recording this type of BAT transaction, as described in Explanation 6 above.

[0237] - The four-digit identification number for sub-account groups set up under the basic accounting account group is generated as follows: after the two-digit identification number of the basic accounting account group to which the sub-group belongs, add two more digits as a serial number:

[0238]

[0239]

[0240]

[0241]

[0242] The system is shown in Figure 07.

[0243] The above content pertains to the basic categories of account types. These categories form the basis for selecting transaction records and related journal entries, and are referred to as the "basic categories of account types." The corresponding account groups are called the "basic account groups." These transactions affect individual accounts, and the account subjects related to individual accounts are grouped under various business accounting transactions, as shown in the table below, and can be referred to as the "related individual account groups."

[0244] Table 7.1.C: The relevant individual account group and its two-digit identification number under each account type, and the four-digit identification number of the subgroups under that group, and JAT category accounts: Some subgroups are the result of JAT transactions, as described in Part 10 of the specification. However, for the purpose of compiling a list of subgroups for the relevant account types, these subgroups are also included in the table below and listed separately in the JAT category column, which will be explained later in the JAT category transactions section.

[0245]

[0246]

[0247]

[0248]

[0249]

[0250] The system is shown in Figure 08.

[0251] Furthermore, the above list of subgroups is for illustrative purposes only; users can continue to add other subgroups by sequentially numbering each group. However, the subgroups already assigned four-digit identification numbers can be used as the standard identification numbers for those subgroups.

[0252] Step Two. As part of this claim, this system provides a two-digit identification numbering system for recording journal entries, as described below, and this system stipulates that the first two digits of the BAT-ID (reflecting the basic accounting subject group identification number) should also be used as the identification number of the journal entry: the journal entry is the carrier for recording any BAT transactions. BAT provides a system for recording BAT transactions of each category in a dedicated ledger, and the first two digits of the BAT-ID (reflecting the basic accounting subject group identification number) should also be used as the identification number of that journal entry. Similarly, under the revenue category, any new journal entries can be continuously added. Accordingly, we have provided identification numbers for each journal entry used to record other types of accounts, as shown in the table below; when any new journal entries are introduced in the future, an identification number can be further assigned to each new journal entry according to the system described in Step Two.

[0253] Step 3. As part of this claim, this system stipulates that the third (last) digit of the BAT-ID should be a numerical identification number to reflect the nature of the business accounting transaction (BIT / BOT) and also to indicate the identity status of the other party involved in the transaction (as a payer or payee), as follows:

[0254] A table of one-digit identification numbers for transactions: BIT / BOT

[0255]

[0256] Table 7.2: Business Accounting Transaction Identifier (BAT-ID) System: This system provides a method for creating a BAT-ID for any BAT accounting transaction. The BAT-ID consists of three digits and should be generated according to the three steps described above, with the following meanings:

[0257]

[0258] Table 7.3.A: BAT Transaction Categories and their BAT-IDs / Extended BAT-IDs, the relevant journals used to record the transaction, and the basic / personal accounting subject group categories to be affected: As an example, this system provides 19 BAT-IDs as standard BAT-IDs, and the system also provides a mechanism to further create new BAT-IDs based on the above four steps.

[0259]

[0260]

[0261]

[0262] The system is shown in Figures 10 and 11.

[0263] Table 7.3.B: Extended BAT-ID derived from BAT transactions in currency trading

[0264]

[0265]

[0266] Input Mechanism for BAT-ID and Extended BAT-ID: As mentioned earlier, this system provides the function of recording BAT transactions based on BAT-ID / Extended BAT-ID. This identification number can be entered into the accounting system running on the ASRAT system in any of the following ways:

[0267] - Scanning device: BAT-ID / Extended BAT-ID can be written on accounting vouchers and collected by scanning.

[0268] - Manual entry: BAT-ID / Extended BAT-ID can be manually entered in ASRAT-based accounting systems.

[0269] - Select from the list: The ASRAT-based accounting system will present a list of all BAT-IDs / extended BAT-IDs (as shown in Table 7), from which the user can select.

[0270] Once a BAT-ID / Extended BAT-ID is obtained through any of the above methods, the user will automatically enter the corresponding journal to record the transaction data.

[0271] Part 8 of the instruction manual: Identification number allocation system for accounting subjects under various business accounting transactions: The identification number of an accounting subject should consist of 11 or more digits. Additional digits exceeding 11 may be added as needed to accommodate the size of the organization's books.

[0272] I. The logic for defining the basic accounting subject identification number in this system is as follows:

[0273] i. The first digit indicates the account type; the second digit is the transaction number under that account type. The first two digits combined represent the identification number of the basic accounting subject group or journal.

[0274] ii. The last two digits (the third and fourth digits) represent the sub-account group identification number under the basic accounting subject group, set according to the serial number.

[0275] iii. The last two digits (the fifth and sixth digits) represent the identification number of the further sub-sub-sub-group under this sub-sub-sub-group (if required by the user), generated according to the serial number under each sub-sub-sub-group. If no further sub-sub-sub-group is needed under a certain sub-sub-sub-group, the fifth and sixth digits should be "00", indicating that there is no sub-sub-sub-sub-group at this level, and the accounting subject is directly set up under this group or the main sub-group.

[0276] iv. The following five digits represent the specific accounting subject identification number under each group / subgroup, which is assigned by the user according to the serial number.

[0277] II. Allocation system for relevant personal accounting account identification numbers:

[0278] i. The first four digits of this type of identification number should be the same as the four-digit identification number of the “Relevant Personal Account Subgroup” listed in Table 7.1.C.

[0279] ii. The last two digits (the fifth and sixth digits) represent the identification number of the further sub-sub-subgroup under the relevant individual accounting subject sub-group (if required by the user), and should be generated according to the serial number under each sub-group. If no further sub-groups are needed under a certain sub-group, the fifth and sixth digits should be "00", indicating that there are no further sub-groups under that sub-group, and the accounting subject is directly established under that sub-group.

[0280] iii. The following five digits represent the specific accounting subject identification number under each group / subgroup, which is assigned according to the serial number of each group / subgroup.

[0281] Based on the above system, identification numbers for various BAT transactions can be assigned according to the table below. This table is only an example of some accounting items.

[0282] Table 8: Identification Number Assignment System for Accounting Subjects under Each Group / Subgroup: This system allows users to create identification numbers for any accounting subject under the relevant BAT category's accounting subject group / subgroup identification number field.

[0283] The system steps are as follows: Step 1: Select the group / subgroup established in Table 7.1.B or Table 7.1.C of Part 7 of the instruction manual. Step 2: Obtain the identification number of the relevant accounting subject. This identification number should be a serial number, prefixed with the aforementioned group / subgroup identification number, and generated according to the above system rules:

[0284] The following is an example of creating an account identification number under a basic account group / sub-account group:

[0285]

[0286] The system shown in Figure 13

[0287] Example of creating an account identification number under a relevant individual account group / sub-account group

[0288]

[0289] The system shown in Figure 14

[0290] Similarly, users can create accounting subjects under each group / subgroup according to their own needs.

[0291] Part 9 of the Specification: Classification System for Journal Accounting Transactions and Setting of Identification Numbers: As described in Part 1 of the Specification, in addition to business accounting transactions arising from business dealings with others, there are other types of transactions called Journal Accounting Transactions (JAT), which are recorded in the journal. As part of the claims of this invention, we propose a "Classification System for Journal Accounting Transactions (JAT)," which divides JAT into three major categories according to their compilation purpose, as follows:

[0292] - In order to reflect the profit and loss of a certain accounting period on an accrual basis, several accounting entries need to be prepared at the end of the year.

[0293] Most year-end JAT entries need to be reversed in the following year.

[0294] - In addition to the closing entries and opening entries, there are some accounting entries that need to be treated as JAT, in which no one else is directly involved as the payer or payee.

[0295] JAT Category 1: Period-End Closing Journal Transactions (JAT): JAT transactions related to period-end events and used to complete accounting on an accrual basis belong to the period-end closing JAT category, also known as "cJAT". cJAT transactions are further classified as follows:

[0296] -Entries relating to goods that have not been sold or used at the end of the year, and entries for recording ending inventory, may be assigned the code cJAT01.

[0297] - Journal entries that accrue revenue that is attributable to or belongs to the current year. Such cJAT transactions involving revenue accrual may be assigned the code cJAT02: Revenue Accrual.

[0298] - Journal entries that accrue expenses that are attributable to or belong to the current year. Such cJAT transactions involving expense accrual can be assigned the code cJAT03: Expense Accrual.

[0299] -Accounting for prepaid expenses cJAT04

[0300] -Amortization of deferred revenue expenses cJAT05

[0301] -Amortization of start-up costs cJAT06

[0302] -Recognize deferred tax liability cJAT07

[0303] -Recognize deferred tax asset cJAT08

[0304] - Accrual of fixed asset depreciation cJAT09

[0305] - Other journal entries related to the end of the period: All other JAT transactions related to the end of the period can be classified into this category and referred to as "Other cJAT Transactions", including any JAT accounting transactions related to the end of the period.

[0306] JAT Category 2: Opening Journal Transaction (oJAT): JAT entries used to reverse the previous year's closing cJAT entries are called opening JAT entries, also known as oJAT. The cJAT01 to cJAT04 entries prepared in the previous year should be reversed in the ledger as opening JAT entries in the following year.

[0307] - The oJAT entry used to recognize beginning inventory in the books can be called oJAT01.

[0308] - oJAT entries used to reverse revenue accruals from the previous year. Such oJAT transactions involving the reversal of revenue accruals from the previous year may be referred to as oJAT02: Reversal of Revenue Accruals.

[0309] - oJAT used to reverse cJAT entries related to expense accruals in the previous year. Such oJAT transactions involving the reversal of expense accruals in the previous year can be referred to as oJAT03: Reversal of Expense Accruals.

[0310] - Reversing the prepaid expenses accrued in the previous year can be referred to as oJAT04

[0311] - Reversing other closing entries from the previous year can be referred to as oJAT05

[0312] JAT Category 3: General JAT Transactions: When accounting entries need to be prepared and there is no direct involvement of others as payers or recipients in the transactions involved in the entries, they should be treated as general JAT transactions. Such JAT transactions can be referred to as "gJAT". Examples of gJAT transactions include: Allotment of share subscription money. When share subscription money is received, it is a monetary transaction, that is, share subscription money is received from others. Transactions related to the receipt of share subscription money should be recorded in the bank journal as BAT transactions.

[0313] - Subsequently, when the share subscription money is converted into share capital, the transaction does not directly involve a payer or a recipient. The received share subscription money should be accounted for through journal accounting transactions.

[0314] We divide general JAT transactions into several categories, as shown in Table 9, as standard sub-categories of gJAT transactions, to standardize the JAT accounting system and associate such JAT category transactions with relevant accounting subject groups. According to the same system, new gJAT categories can be further created as needed. The advantages of dividing JAT transactions into different categories and sub-categories are as follows:

[0315] I. Facilitating understanding: Classifying JAT transactions by specific nature helps users understand the purpose of each type of transaction and better understand the accounting impact of such transactions.

[0316] II. Facilitating bookkeeping by standardizing the recording of most JAT transactions: Classifying transactions helps standardize the data entry process, enabling the recording method of most JAT transactions to be preset, as shown in Table 9 below. The system should have the following functions:

[0317] - Automatically debit and credit relevant accounting subjects based on the selected transaction identification number. Minimize the participation of data operators in selecting accounting subjects, thereby reducing the probability of errors.

[0318] - Data entry operators / users only need to understand the description / details / information of the transaction to be recorded, and then select the relevant identification number from the drop-down menu corresponding to the transaction category. After selecting the transaction, the accounting subjects to be debited and the accounting subjects to be credited for the transaction should be automatically displayed, thus enabling error-free and efficient data entry for journal accounting transactions.

[0319] This system provides a seven-digit transaction identification number for JAT transactions, and its logic is as follows:

[0320] - Step 1: The first digit is "9", indicating that the transaction is a JAT transaction.

[0321] - Step 2: The first four digits, including the first digit "9", are used to represent the accounting subject subgroup, determined by account type and in accordance with Table 7.1.C.

[0322] - Step 3: The last digit is the serial number of the accounting subject under each type of JAT transaction.

[0323] Table 9: JAT Transaction Categories, Their Transaction Identification Numbers, Related Affected Accounting Subjects, and the Classification and Identification Number Allocation System for JAT-Related Transactions:

[0324]

[0325]

[0326]

[0327]

[0328]

[0329]

Claims

1. A computer-based system for recording various business accounting transactions based on a unique identifier (BAT / Extended BAT-ID), characterized in that: - A server computer equipped with a processing unit. - A scanning device. - A network port, - One or more data storage units, and one or more access units, and an accounting system built based on the ASRAT system described in this invention, comprising: a) A system for assigning a unique identifier (BAT-ID / or extended BAT-ID) to each type of business accounting transaction, for assigning identifiers to multiple business accounting transactions within a specific category, configured as follows: - The single digit of the identification number indicates the account type to which the BAT-related transaction belongs; - The first two digits (including the first digit) represent the identification number of the underlying accounting ledger or the journal used to record such transactions; - The last digit represents the identification number of the nature of the business transaction involved in each type of Business Accounting Transaction (BAT), used to determine whether the other party's identity status is that of the payer or the payee; When a user selects to record transactions based on a 3-digit BAT-ID system, it also includes... - The last four digits of the personal accounting sub-ledger group that needs to be debited / credited; Users can choose to record transactions based on the 7-digit extended BAT-ID system. b) A system for recording business accounting transactions based on BAT-ID or extended BAT-ID, wherein the BAT-ID or extended BAT-ID is obtained via "scanning device as an input mechanism or via any other input mechanism", and the system is configured to identify the BAT-ID and / or extended BAT-ID specified / recognized by the user for the accounting document to be recorded, and record it as a business accounting transaction, wherein:

1. When a user selects to record transactions based on BAT-ID and receives BAT-ID input via scanning or any other input mechanism (as described in paragraph C below), the system is configured to automatically perform the following operations: - The system drives the selection of the relevant designated journal entries to record accounting transactions for this type of business. - The system drives the selection of predefined "basic accounting general ledger account groups / subgroups" for debiting or crediting accounting transactions of this type. - The system drives the selection of the identity status of accounting personnel involved in this type of business transaction based on the nature of the transaction, whether they are payers or payees; - The system drives the selection of a predefined "relevant personal accounting account group" for debiting or crediting such business accounting transactions. - And provides a specified format applicable to this type of BAT category transaction for filling in the required details. and / or 2. When a user selects to record a transaction based on the Extended BAT-ID and receives the Extended BAT-ID input via scanning or any other input mechanism (as described in paragraph C below), the system is configured to automatically perform the following operations: - The system drives the selection of the relevant designated journal entries to record accounting transactions for this type of business. - The system drives the selection of predefined "basic accounting general ledger account groups / subgroups" for debiting or crediting accounting transactions of this type. - The system drives the selection of the identity status of accounting personnel involved in this type of business transaction based on the nature of the transaction, whether they are payers or payees; - The system drives the selection of a predefined "relevant personal accounting subgroup" for debiting or crediting such business accounting transactions. - And provides predefined formats applicable to accounting transactions of this type of business to fill in the required information. III. Complete the transaction record (data entry) process. - Only by providing further details / information / values / data related to this type of business accounting transaction in the given predefined format, and - Select the relevant accounting entries from the predefined accounting entry group / subgroup selected by the system driver. c) Input mechanism: — BAT-ID or extended BAT-ID can be obtained by the system through any of the following input mechanisms: - Scan the BAT-ID or extended BAT-ID marked by the user on the accounting document, and / or - Manually enter the BAT / Extended BAT-ID in the system, and / or - Select the relevant category from the list of all BAT-IDs or extended BAT-IDs configured in the user's accounting system.

2. The system according to claim 1, wherein, A system with a digital portal that creates BAT-IDs, extends BAT-IDs, and creates identification numbers for accounting ledger groups and / or subgroups based on business accounting transaction categories. Digital portal access requires an OTP password. The portal is divided into the following modules, and operation is performed according to the diagrams not provided for each module: -Module 01: Accounting Transaction Classification System (Figure 04). -Module 02: Business transaction classification system based on the subject matter and nature (Figure 05). - Module 03: Business Accounting Transaction Classification System (Figure 06). - Module 04: System for assigning 2-digit identification numbers to journal entries (Figure 07). - Module 05: Create a system with a 3-digit BAT-ID (Figure 08). - Module 06: Create a system with a 7-bit extended BAT-ID (Figure 09). - Module 07: A system for assigning a 2-digit identification number to each type of business accounting transaction (Figure 11). -Module 08: A system of 4-digit identification numbers for sub-accounts of each basic accounting account group (Figure 12). -Module 09: A system for assigning a 2-digit identification number to the relevant personal accounting ledger group for each type of business accounting transaction (Figure 13). - Module 10: A system for 4-digit identification numbers of sub-accounts of relevant personal accounting account groups (Figure 14). - Module 11: A system that provides an 11-digit (or more digits selected by the user) identification number for accounting entries within basic subgroups / groups under various business accounting transactions (Figure 15), and - Module 12: A system that provides an 11-digit (or more digits selected by the user) identification number for accounting entries in relevant subgroups / groups of individuals under various business accounting transactions (Figure 16).

3. The system according to claim 1, wherein the system is used to create a unique identifier "BAT-ID" and an extended BAT-ID for each type of business accounting transaction, which serve as the basis for recording BAT-related transactions in a specified journal, wherein predefined BAT / extended BAT IDs of various categories serve as standard IDs for BAT-related transactions of a given common category.

4. The system of claim 1, wherein the system is used to introduce new journals as part of an accounting system, for recording each type of BAT-related transaction into a designated journal, thereby introducing five new journals as described below (the claims for each of these five journals are independent for each journal):

1. A system for recording BAT-related transactions of the SIT category (for "service purchase" or fees incurred to obtain any service) into a new journal called "Service Purchase and Fee Journal".

2. A system for recording BAT-related transactions of the SOT category (for the nature of "providing services" or selling services) into a new journal called "Service Sales Journal".

3. A system for recording BAT-related transactions in the OIT category (involving income derived from owned fixed assets / owned investments) into a new journal called "Other Income Journal". IV. A system for recording BAT-related transactions (for the purchase / sale of fixed assets) of the FIT / FOT category into a new journal called "Fixed Asset Journal".

5. A system for recording BAT-related transactions (purchases / sales for investment) in the IIT / IOT category into a new journal called "Investment Journal".

5. The system according to claim 1, a system for assigning an identification number to each journal used for recording accounting transactions.

6. The system according to claim 1, a system for classifying business transactions based on the subject matter of the transaction, and a coding system for these categories.

7. The system according to claim 1, a system for classifying business accounting transactions based on the subject matter and nature of the transaction, and a coding system for these transactions.

8. The system according to claim 1, a system for assigning standard identification numbers to accounting ledger groups and related subgroups, enabling users to decide for themselves to provide identification numbers to related ledgers.

9. The system of claim 1, a system for classifying accounting transactions into BAT / JAT categories based on whether any other person is involved in the transaction, whether as a giver or a receiver.

10. A journal accounting transaction classification system, and providing identification numbers for it.

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