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REA_Intro.pdf

mikorizal
September 17, 2021

 REA_Intro.pdf

Slides from Bill McCarthy and a few others.

mikorizal

September 17, 2021
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  1. Intro to REA
    Selected slides from Bill McCarthy, the father of REA
    - and a few slides from other people.

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  2. Economic
    Event
    Economic
    Agent
    stockflow
    duality
    Economic
    Resource
    participation
    R E A

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  3. Once upon a time at
    the cookie store ……
    an accounting story

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  4. Cookie-Monster (the monster) and
    Elmo (the baker) meet in the (real or
    virtual) marketplace, thus setting
    the stage for an Economic Exchange

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  5. Cookie-Monster and Elmo engage in
    a SALE (transfer of Cookie Inventory)

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  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

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  7. Cookie-Monster and Elmo
    engage in a PAYMENT
    (transfer of Cash)

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  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

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  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

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  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

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  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

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  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

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  13. REAContracts
    Adding sematics to business
    contracts
    Jesper Kiehn (Simon Peyton-Jones)

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  14. 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)

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