Party be any real Person or Organization.
Party sites are locations for Party or Organization.
Relationships are generally used to construct hierarchical structure of Organizations.
Party becomes a Customer/Account, once a selling relationship is established.
An account should typically have at least one active ‘bill_to’ site. It helps for accounting and reporting purposes.
When creating Parties, what all party sites can be or should be created as Parties.
Generally, if you want to see activities for site level separately from your parent level party, you should create that Site as a separate Party/Entity.
An account is a separate entity. Create account only where you have selling relationship i.e. only for customers. It identifies selling attributes e.g.payment terms, shipping and billing preferences etc. of the relationship.
You can have multiple accounts, for each relationship between external party and your business entity. It enables you to have multiplesets of selling attributes e.g. payment terms etc.
You can build relationship between accounts and have one account to pay for another.
If transaction needs to be segregated within a party to perform. granular analysis based on selling or business relation,separate accounts with a party should be created.