Chpt_Supp_3_outline_-_Commitments

Chpt_Supp_3_outline_-_Commitments - CHAPTER 17 Instigations...

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CHAPTER 17 – Instigations and Commitments Several events usually occur before an economic transaction occurs: 1. Inquiry 2. Promise 3. Exchange We can expand the basic REA pattern to include these additional events: Economic Event Economic Event duality Resource flow2 Resource flow1 Commitment executes Instigation fulfills EXTERNAL AGENT Agent INTERNAL AGENT Agent part1 part2 part3 INTERNAL AGENT Agent part4
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We have two new relationships to name: Fulfills Executes Economic Events versus Business Events Economic events – Business events – Instigation Events Examples of instigation events: *NOTE: Instigation events also occur in the production cycle. In this case, an internal agent inquires into possible production jobs. No external agents are ever involved in the production cycle. Specialized software or modules have been developed to track instigation events in the revenue and expenditure cycles: The revenue cycle
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The expenditure cycle
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