REA_Intro.pdf

Slides from Bill McCarthy and a few others.

Transcript

1. Intro to REA Selected slides from Bill McCarthy, the father of REA - and a few slides from other people.
2. Economic Event Economic Agent stockflow duality Economic Resource participation R E A
3. Once upon a time at the cookie store …… an accounting story
4. Cookie-Monster (the monster) and Elmo (the baker) meet in the (real or virtual) marketplace, thus setting the stage for an Economic Exchange
5. Cookie-Monster and Elmo engage in a SALE (transfer of Cookie Inventory)
6. Cookies Sale entreprene ur Economic Resource outsideParticipa te stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow insideParticipat e custom er insideParticipate outsideParticipate
7. Cookie-Monster and Elmo engage in a PAYMENT (transfer of Cash)
8. Cookies Sale entrepreneur outsideParticipate stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow Cash- Receipt insideParticipate customer entrepreneur insideParticipate outsideParticipate
9. Economic Resource insideParticipa te stockFlow Economic Agent Economic Agent Economic Event outsideParticipat e WHAT? WHEN? WHO? The What, When, Who, and Why Translation of a Business Process WHO? dualit y WHY? Economic Event
10. Alice purchased eggs from Jones Company some and Economic Resource insideParticipa te stockFlow Economic Agent Economic Agent Economic Event outsideParticipat e direct object subject verb prepositional phrase Normal Sentence Translation of the REA Metamodel
11. Financial Reporting View Other Views of Enterprise Event-chains Enterprise Value Chain (non-legacy ERP) distributed business transaction repository Value Network (Independent view) . source document Financial Statements transactions & master files Legacy Accounting Systems (A = L + OE) Enterprise Value Chain (legacy ERP) Value Network (Trading Partner view) firm–b firm–a firm–b firm–a firm–c Enterprise Value Chain (legacy ERP) Enterprise Value Chain (legacy ERP) distributed Value Network (legacy hybrid) firm–b GL is-a
12. typify typify responsible reciprocal toPromise stockFlow fromParticipate toParticipate fulfill specify specify fromPromise policy policy Economic Event Type duality reserve reserve typify policy Economic Contract bundle trigger Economic Commitment specify Economic Agent Economic Resource Type Economic Resource Economic Event Economic Agent Type The Policy Layer The Scheduling Layer partyNegotiate
13. REAContracts Adding sematics to business contracts Jesper Kiehn (Simon Peyton-Jones)
16. other materials Deliverable Contribution (project step) Project Contribution (project step) labor equipment ideas stockFlow duality duality prototypes designs creating value transfer or use of project value to party outside the payment or value enhancement distribution to individual value creators based on value accounting system duality stockFlow distributing value Figure 4 – Accountability Layer for an Open Value Network (Source: McCarthy et al. 2018)