Algorithm

The algorithm that keeps track of the fairness between the owners.

There are two balances for each owner:

• Money: The amount of money an owner has exclusive VAT. When negative, the owner is in dept to the other owners.
• VAT: The amount the owner has to pay/get from the IRS. When negative, the owner is in dept to the IRS. However, negative VAT means the amount is present at the company bank, so this amount can be spent on expenses. When positive, the owner will get the amount back from the IRS.

Incomes

1. Increase all owner money balances (according to owner percentage).
2. Decrease all owner VAT balances (according to owner percentage).

Expenses

Payed by owner

1. Increase the owner money balance by the price exclusive VAT.
2. Decrease the owners money balances (according to owner percentage).
3. Increase the owners VAT balances (according to owner percentage) by the VAT of the price.

Payed by company