Trade Control models cash not as a passive ledger entry, but as a directional signal embedded in the schema1. Every transaction carries a polarity2—positive, negative, or neutral—which determines its operational role. This polarity replaces conventional constructs like customer/supplier roles, document types, and invoice logic.
This inversion means that the system doesn’t need to define customers, suppliers, or document types explicitly—they are inferred from the direction of cash.
Every transaction is tagged with a Cash Code, which defines:
These Cash Codes are grouped into Categories, which form recursive hierarchies. A Category can contain:
This structure enables schema-native reporting without hard-coded logic. Crucially:
There is no innate thing called Net Profit, Gross Profit, or Indirect Costs.
These are constructed by the user, who defines which Category represents Net Profit.
Trade Control models this in the Production Layer, which has no conception of what Net Profit is. It simply models transactions. The user defines meaning through Category structure. A recursive function collects all Cash Codes connected to the Category tree—and adds them up.
Because computers are very good at adding up, this process is lightning fast. Net Profit can be calculated in milliseconds from the Genesis Transaction, without needing to traverse external ledgers or interpret legacy constructs.
Trade Control supports three primary types of Category3:
Tax types (VAT, income tax, corporation tax) are assigned at the Cash Code level, and misclassification (e.g. salary as zero VAT) can corrupt reporting. Because tax is embedded at the schema level, Trade Control enables:
Cash Expressions use Excel-style formulas, referencing Category names instead of cell ranges. This allows dynamic reporting and future accrual modelling. Examples include:
Because polarity drives everything, nodes can be connected into trading networks without needing explicit customer/supplier definitions. Order book profit and current balance are calculated by summing live tasks and payments. Business intelligence is transaction-grained and schema-native.
Trade Control treats cash as a directional signal that drives operational logic. By embedding polarity, tax, and category structure into the schema, it enables recursive modelling of profit, compliance, and liquidity—without relying on conventional constructs like invoices or account codes.
Cash is not abstract. It is embedded, directional, and operational. Trade Control treats it as a signal—not a possession.
