Concept behind loottbles (did I get it right)?

[Thalix]

Just to make sure I understood the loot concept (even if I use tools to add loot, I want to understand how it works):

- Create a new record in lootdrop for the Id. The field 'name' doesn't matter.
- Create new record(s) in lootdrop_entries. Here you put the items you want to drop for this lootdrop.
- Create a new record in loottable. You can set coin-loot for this set. Connects the loottable to lootdrop_entries
- Create new record(s) in loottable_entries. Sets the drop chance of this set. Connects the loottable with a specific npc_type.

1. Is that how it works?
2. What about the table 'global_loot'? If I set the field 'skip_global_loot' to 'false' in the table 'npc_type' and set the field 'loottable_id' in 'npc_type', is both used then?