Glossary

Here, you will find the definitions of the terms that are used throughout our documentation:

A

Account

An account represents the core elements within the Ledger. Each account is specifically tied to one Instrument and contains various sub-accounts, each with its unique role.

Account type

The primary function of the account. An account can be one of the following types:

• Deposit

• Savings

• Loans

• Marketplace

• Credit card

• Settlement accounts

• Bucket accounts (or Virtual accounts)

• External accounts

C

Chart-of-accounts

Also known as accounting routes, the chart-of-accounts determines how ledger values are settled and accounting route flows are defined. Each leg of the transaction is represented by a tag in a one-to-one correspondence and is grouped by a chart-of-accounts-group.

Child-account

A child-account is also known as a sub-account. These accounts are subordinate to a primary account.

E

Entity

An Entity is the owner of the accounts. They can be a Natural Person or a Legal Person.

I

Instrument

An instrument refers to the payment method utilized in financial transactions recorded in the Ledger. It encompasses many authorized assets and currencies, such as BRL, EUR, BTC, and commodities like soybeans and household appliances.

L

Ledger

A ledger is a systematic record-keeping tool that tracks and organizes financial transactions within an Entity's Accounts.

Each Organization can have multiple Ledgers.

O

Organization

The company that will use Midaz.

Operation

In the context of Ledgers, operations are unilateral and atomic, meaning they cannot be divided into smaller units. For instance, in a transaction where money is transferred from one account to another, there would be three atomic operations:

• a debit operation in the origin account

• a credit operation in the destination account

• a credit operation in the transaction fee deposit account

P

Parent Entity

The Parent Entity is the entity that is connected to an Account but they are not the Account Holder. They are usually someone who won't use the account itself, but still need to have access to the transactions, balances, and information of the account.

Portfolio

A Portfolio is a collection of Accounts. It combines various accounts and instruments similar to a physical wallet that holds different currency notes.

Product Id

The Product ID refers to the concept of customer segmentation based on specific user policies.

T

Transaction

At the heart of a ledger lies a transaction, which involves transferring balance from one account to another. This can also include multiple operations, such as n:n transactions.

For example, if a user specifies that a $3 fee will be charged during a P2P transaction, the transaction would have an origin (the account of the user who sent the balance) and two destinations (the account of the user who received the balance and the account that stores the tariff values).

Transaction template

Transaction templates are models designed to ensure consistent flows of transactions such as PIX, regardless of the user initiating the transaction.