Core Concepts
Understand the fundamentals of Soledgic's accounting system.
Ledgers
A ledger is an isolated set of books for your business. Each ledger has its own:
- Accounts (platform revenue, creator balances, cash, etc.)
- Transactions and entries
- API key for authentication
- Settings (fee percentages, currency, etc.)
Most organizations have a single ledger, but you might create separate ledgers for different business lines or subsidiaries.
Test & Live: Each ledger is paired—one for test mode and one for live mode. They share a ledger group ID but have separate data and API keys.
Double-Entry Accounting
Soledgic uses double-entry accounting, the gold standard for financial record-keeping. Every transaction creates at least two entries that balance out:
Example: Recording a $29.99 sale with 20% platform fee
| Account | Debit | Credit |
|---|---|---|
| Cash | $29.99 | — |
| Platform Revenue | — | $6.00 |
| Creator Balance (Jane) | — | $23.99 |
| Total | $29.99 | $29.99 |
Debits always equal credits. This ensures your books always balance and provides a complete audit trail.
Accounts
Accounts are buckets that track different types of money. Soledgic creates these automatically when you create a ledger:
Platform Revenue
Your platform's earnings from fees on sales. This is your actual income.
Creator Pool
Total amount owed to all creators. Broken down into individual creator accounts.
Cash
Your bank account balance. Increases with sales, decreases with payouts.
Processing Fees
Payment processor fees (Stripe, PayPal, etc.). Tracked as an expense.
Tax Reserve
Withheld taxes (backup withholding, etc.). Held until remitted to tax authorities.
Transactions
A transaction is a business event that affects your ledger. Each transaction:
- Has a unique ID and reference ID (your external identifier)
- Contains one or more entries (debits and credits)
- Is immutable—once created, it cannot be modified
Transaction Types
| Type | Description |
|---|---|
sale | Revenue from a customer purchase |
refund | Money returned to customer |
payout | Payment to a creator |
expense | Platform operating expense |
adjustment | Manual correction or bonus |
reversal | Undo a previous transaction |
Immutability
Soledgic uses an immutable ledger pattern. Once a transaction is recorded, it cannot be deleted or modified. This provides:
- Audit trail — Complete history of all financial activity
- Compliance — Meets requirements for financial record-keeping
- Trust — Data integrity you can rely on
Need to fix a mistake? Use a reversal transaction to undo the effects. The original transaction remains in the ledger for the audit trail, but its effects are negated.
Revenue Splits
When a sale is recorded, Soledgic automatically splits the revenue between your platform and the creator:
The split percentage is configurable per ledger or per transaction. You can also configure additional deductions like tax withholding.