Why a card purchase does not move cash

Open the Mid-Market Group demo (Demo library) to follow along.

This shows the asset-versus-liability rule: a charge on a credit card raises what you owe but does not move cash. Cash moves only when you pay the card.

1. Open Mid-Market Group - Parent (Demo). Note the liability account Corporate Amex.
2. Find the definition Parts purchases: a monthly outflow charged to Corporate Amex, not to a bank account.
3. Run a projection. The parts charges do not pull the cash balance down when they post: they increase what is owed on the card.
4. Now look at Monthly card payment and the actual Pay down the card: paying the card from Operating is when cash actually leaves.

Takeaway: outflows on a liability account defer the cash impact to the payment. Projected cash counts asset balances only.

In-app documentation, version 1. Generated from the product documentation source, so this matches the app exactly.