Class_5_designing_an_REA_Model_lecture_n

Class_5_designing_an_REA_Model_lecture_n - Designing an REA...

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Designing an REA Model Class 5 Sept 19
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The REA pattern Economic Event Economic Agent stockflow duality Economic Resource participation
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Economic Resource insideParticipate stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow Elementary REA model for exchange process outsideParticipate outsideParticipate insideParticipate
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Economic Resource insideParticipate stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow Elementary REA model for exchange process outsideParticipate outsideParticipate insideParticipate
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Economic Resource fromParticipate stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow fromParticipate toParticipate toParticipate
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Product# Description Price QOH P-1 Chocolate  Chip 1.05 200 P-2 Chocolate .95 205 P-3 Peanut  Butter 1.00 97 P-4 Pecan 1.10 257 Invoice# Payment  Timestamp Amount  Applied I-1 2JUL0830 14.75 I-2 3JUL0800 2.00 I-2 5JUL0800 18.00 I-3 8JUL1145 9.90 I-4 8JUL1145 9.20 C-999 E-1236 3JUL 9.90 I-3 C-999 E-1237 5JUL 9.20 I-4 C-888 E-1235 2JUL 20.00 I-2 C-987 E-1234 1JUL 14.75 I-1 Buyer#   Seller# Date Dollar  Amount Invoice# Product# Invoice# Quantity P-2 I-1 5 P-3 I-1 10 P-3 I-2 20 P-4 I-3 9 P-1 I-4 4 P-3 I-4 5 COOKIES SHIPMENT COOKIES-stockflow-SHIPMENT SHIPMENT-duality-PAYMENT Story of why this invoice amount to $14.75 ?? M0 Level – (partial) REA model for exchange process
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Economic Resource Economic Event  participation stock-flow Inside       Economic Agent Outside       Economic Agent Economic Resource outside participation inside participation stock-flow Economic Event Economic Agent Economic Agent Use of binary relationships exclusively  participation
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1 Step 1: Identify the Economic Exchange Events Identify the pair of events that reflect the basic economic exchange (give-to-get duality relationship) in that cycle.
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Economic Resource fromParticipate stock-flow Economic Event Economic Agent Economic Agent Economic Agent Economic Agent Economic Resource duality Economic Event stock-flow fromParticipate toParticipate toParticipate
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Rule 1: Every event entity must be linked to at least one resource entity. Events must be linked to at least one resource that they affect. Some events affect the quantity of a resource: If they increase the quantity of a resource, they are called a “get” event. If they decrease the quantity of a resource they are called a “give” event.
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