Acct332 gdb4

Acct332 gdb4 - simple to convert these programs. The IT...

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28 th June 2011 Module 7, Group 7, GDB 4 RE: Describe the difficulties a company would face if they were to replace their current system in lieu of the REA accounting information system. A company will face many difficulties switching to a Resource Event Agent (REA) data model. “The REA data model was developed specifically for use in designing AIS” (Romney & Steinbart, 2009). The basics of the REA is what the acronym stands for Resources that will be connected to an event that has been affected it. The event itself has to be connected to an event. Finally, two agents have to be connected to an event. The company would have to start from scratch in order to switch to a REA accounting information system. Accounting programs that are off the shelf are not designed to do basic functions. They are mostly design to keep checks and balances. They are not designed to make correlations between events just what account it is that will be debited and credited. It is not
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Unformatted text preview: simple to convert these programs. The IT department would have to overhaul the whole system. An Accounting Information System gives more information than any over the counter accounting program. They way the programs handle account receivable is another issue that would have to be worked out. The program would have to be able to determine which method of payment was used and how that would relate to an event. Converting to a REA data model would have many benefits to a company depending on what the company produces and its growth potential. It would not be feasible to recreate a system if the company would not be expanding because it was a family owner business. A company would have to evaluate whether to attack all of the difficulties that would be involved in switching systems. Reference: Romney, M. B., & Steinbart, P. J. (2009). Accounting Information System 11th ED. Upper Saddle River, New Jersey: Pearson Prentice Hall....
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Acct332 gdb4 - simple to convert these programs. The IT...

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