Permanent Accounts and Balance Types

Bkper account types define two things at once:

• whether the balance carries forward continuously or is read within a period
• whether the account increases on the From side or the To side of a transaction

This guide explains those two dimensions together so you can read balances correctly.

If you need the broader model first, see Core Concepts — Account Types and Balances.

The Two Dimensions That Matter

Every account in Bkper has:

1. a time behavior
2. a balance direction

Time behavior

Accounts are either:

• Permanent — balances carry forward continuously
• Non-permanent — balances are interpreted within a selected period

Balance direction

Accounts either increase when they appear on:

• the From side of a transaction
• the To side of a transaction

These two dimensions combine into the four account types used in Bkper.

The Four Account Types

Account type	Time behavior	Increases on	Typical examples	Main question it answers
Asset	Permanent	To	Bank, cash, inventory, receivables	What do I have right now?
Liability	Permanent	From	Loans, credit card debt, suppliers	What do I owe right now?
Incoming	Non-permanent	From	Sales, salary, interest	How much did I earn in this period?
Outgoing	Non-permanent	To	Rent, payroll, supplies, fuel	How much did I spend in this period?

Permanent Accounts

Permanent accounts are the balance-sheet accounts in Bkper:

• Asset accounts
• Liability accounts

Their balances do not reset when the month or year changes. They accumulate continuously and show your financial position at a point in time.

A Bank account is a typical permanent Asset account. Each incoming transfer increases its balance, and each outgoing payment decreases it. A Loan account is a typical permanent Liability account. Each new borrowing increases the liability balance, and each repayment reduces it.

Permanent accounts answer position questions such as:

• How much cash do I have now?
• How much inventory do I hold now?
• How much do I still owe?

From Balances: Liability and Incoming Accounts

Accounts with a From balance increase when they appear on the From side of a transaction.

This includes:

• Liability accounts
• Incoming accounts

Use this pattern when the source side of the movement is what should grow.

Typical examples:

• a Loan Payable account increases when borrowed money comes from that liability account into the bank
• a Sales or Salary account increases when income flows from that account into a bank or cash account

These accounts often answer period or obligation questions such as:

• How much revenue did I generate this month?
• How much salary income did I receive this year?
• How much do I still owe on this liability?

To Balances: Asset and Outgoing Accounts

Accounts with a To balance increase when they appear on the To side of a transaction.

This includes:

• Asset accounts
• Outgoing accounts

Use this pattern when the destination side of the movement is what should grow.

Typical examples:

• a Bank account increases when money arrives in it
• an Expense account increases when money is assigned to that spending category

These accounts often answer questions such as:

• How much cash is in this bank account now?
• How much is still receivable from customers?
• How much did I spend on fuel this month?

How This Appears in Bkper

In Bkper, account type determines both the color and how the balance should be interpreted.

The Accounts

The Transactions

When reading a balance, ask two questions:

1. Is this account permanent or non-permanent?
2. Does it increase on the From side or the To side?

Those two answers tell you whether you are looking at:

• a position that carries forward
• or activity within a period

Why This Matters

Understanding this model helps you:

• choose the right account type when creating accounts
• interpret balances without relying on debit/credit memorization
• understand why Assets and Outgoing accounts grow on the To side
• understand why Liabilities and Incoming accounts grow on the From side
• read reports and grouped balances correctly

Next Steps

• Learn the underlying movement model in Double-Entry Bookkeeping
• Review the big picture in Core Concepts
• See how time-based balances work in Closing a Period