Accounts receivable and accounts payable are just another type of inventory. They must be tagged.

'Inventory' includes: ACCOUNTS RECEIVABLE.

Somebody said that in my head the second after I published that last post. I got very excited. This was a new idea but I understood it right away.

This isn't just about tagging the dollars that you have saved in your safe. You also have to know the cost of all the dollars that people owe to you, and the cost of all the dollars that you owe to other people.

It would be meaningless if somebody owed you a thousand refrigerators and you had no idea how much they were worth. Or if YOU owed someone a thousand refrigerators. It would be obvious that you would want to know the exact price of those refrigerators so that you would know what they owed you.

There is no 'master item' that doesn't need a tag. Currency is not a master item. It is always valued in terms of something else. It does not have an inherent value of its own that you don't have to bother referring it or comparing it to something else. Its value is always a ratio: dollars/food, dollars/gasoline, and so on.

Every item in inventory needs a tag. The tag is a historical record of what this item was worth when you bought it. Its worth is measured by a ratio of that item to several other useful things, like dollars/food, dollars/land, dollars/labor, etc. AT THE TIME WHEN YOU BOUGHT IT in the past.

Currency (money) is just another inventory item.

Accounts receivable and accounts payable are a type of inventory. Money someone owes you, and money that you owe to someone else, is just another type of inventory.

I got excited about this idea because I understood it right away. ('Right away' means after I've spent all of the years since the year 2000 reading lots of books and websites about money, and after doing a Schaum's Outline of Bookkeeping and Accounting. So it wasn't really 'right away.')