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CHAPTER 17 SPECIAL TOPICS IN REA MODELING INTRODUCTION Questions to be addressed in this chapter: How are REA data models developed for organizations other than retail stores? How are REA data models developed for the HRM/payroll, manufacturing, and capital asset transaction cycles? This chapter extends the basic concepts of the preceding two chapters to other types of businesses and transaction cycles. MANUFACTURERS AND DISTRIBUTORS We’ve already focused on taking customer orders, filling those orders, and collecting payment. Manufacturers, distributors, and other types of businesses often engage in additional activities that management wants to monitor, such as sales calls on customers and picking and packing orders. Using the preceding diagram, review the following relationships and concepts with students: - The call on customer event represents s visit by a salesperson to a customer. - Review relationship and cardinalities between call on customer and take order events. Traditionally, we associate the order with the call that actually precipitated it. - The fill order event represents the picking and packing. - Review relationship between take order and fill order . Chapter 17: Special Topics in REA Modeling 1 Customer Employee (Salesperson) Customer Employee (Warehouse) Employee (Shipping) Carrier Employee (Cashier) Customer Call on Customer Take Customer Order Fill Customer Order Ship Order Receive Cash Inventory Cash
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- Review relationship between fill order and ship order . Attribute Placement --The primary key of the shipping event is the shipment number. The bill of lading number is another attribute in the shipping event. The bill of lading number is not the primary key because it can be null for deliveries made with the company’s own vehicles. The sales invoice number is another attribute of the shipping event. The invoice number is not the primary key for sales because some companies use electronic invoices or eliminate invoices altogether. Also, if the invoice number were used as the primary key, it would be null until such time as an invoice was actually issued, which may often occur after shipment. Information about prices and costs is stored in several places. The inventory table contains information about the standard (list) price and standard cost of each item because those values are typically constant for the fiscal year. The take order-inventory table contains the quantities ordered for each item, as well as the actual price and accounting cost assigned to each, because these change during the year. The REA diagram identifies different employees who participate in each event by their job functions. Makes it easier to use the diagram as a guide to verify whether duties are properly segregated. However, only one employee table is required, which includes the attribute “job title” to identify each employee’s primary function. SALE OF SERVICES
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