In conventional ERP systems, financial visibility is structured around accounting periods. The Balance Sheet1 is a snapshot of net worth taken at fixed intervals, while the Profit & Loss (P&L)2 account accumulates trading activity over time to calculate taxable profit. These abstractions serve external stakeholders—shareholders, accountants, and the State—not the productive domain itself.
This model introduces latency, distortion, and conceptual inversion. Capital is treated as a static asset, and profit as a harvest to be extracted. The productive domain is subordinated to the interests of external owners, whose force field—legal, territorial, and financial—flips the polarity of trade.
Trade Control reconfigures this logic by modelling Money3 as a dynamic, transaction-grained projection. It answers two questions in real time:
To do this, Trade Control:
The result is a live Balance Sheet, recalculated with every transaction, and a forward-looking P&L, available for instantaneous planning. This enables real-time capital extraction logic, without the need for accounting periods or external reconciliation.
Trade Control models money as a projection9, not a ledger. Cash Polarity determines whether a transaction is inflow or outflow, and whether it contributes to asset charge or trading profit. This allows the system to:
In conventional systems, profit is a reward. In Trade Control, it’s a liability—a debt owed to the owner or the State. This inversion is modelled explicitly, enabling the system to calculate tax and dividends as part of the productive workflow.
Trade Control’s financial logic is not an abstraction layered over production—it is production. Money is modelled as a schema-native projection, enabling real-time calculation of net worth and extractable profit. This reconfigures the relationship between business entities, owners, and the State, replacing medieval accounting logic with a recursive, polarity-driven model of economic agency.
