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.
   

   View Slide

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

   View Slide

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

   View Slide

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

   View Slide

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

   View Slide

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
   

   View Slide

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

   View Slide

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
   

   View Slide

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
   

   View Slide

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
    

    View Slide

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
    

    View Slide

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
    

    View Slide

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

    View Slide

14. View Slide

15. View Slide

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)
    

    View Slide