'MOVE' Command Explanation

[nyusternie]

I have so far enjoyed the experience of learning about Bitcoins, mining, etc. I've setup a bitcoin daemon in hopes of developing a few apps and services in the near future. However, there is one thing that has been bothering me for a few days now and I can't seem to find an answer for.

There is a 'move' command in the client/API calls list that will "Move from one account in your wallet to another". I read somewhere that this DOES NOT flow through the block chain. If that is the case, then HOW can you actually use those coins in the new account/address when there is no public record of the transfer.

Thanks for your help