Accounting Principle of the Balance of Payment:

Under the balance of payments international transactions are classified as either credit (positive) or debits (negative). A credit transaction involves the receipt of payment from a foreigner. A debit transaction is a transaction that involves the making of payment to a foreigner.

The export of goods and services, unilateral transfers (gifts) received from foreigners and capital inflows are recorded as credits (+). On the other hand, the import of goods and services, unilateral transfers (gifts) made to foreigners and capital outflows are recorded as debits (-).