REA Online Version

REA Online Version - Agenda REA The REA Data Model REA is a...

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Agenda REA
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The REA Data Model REA is a specialized version of ERD. The REA data model is a conceptual modeling tool specifically designed to provide structure for designing AIS databases.
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Basic REA Template Resource A inflow Get Resource A Participates in Participates in Internal Agent External Agent Give up Resource B Resource B Participate s in Participates in outflow Economic Duality Internal Agent External Agent
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The Foundation of the Business Process Model - Economic Exchanges Economic Exchange Economic Exchange – Two related economic events where we acquire one resource in exchange for another Economic exchanges are important because they involve the most fundamental events where value is added in the business. Therefore, the first part of Therefore, the first part of this course will focus on these events only. this course will focus on these events only. Examples: Examples: give cash, get inventory; give inventory, get cash; get cash from investor, give dividend to investor; borrow money from bank, give money to bank; give cash, get building; give cash, get services
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Components of an Economic Exchange Two related events Each event is associated with a resource – one event increases resources (get), the other decreases or uses resources (give); get and give may, and usually do, involve different resources Each event usually involves one internal agent and one external agent; in an exchange, generally the same external agent is associated with both events Goal is to understand what the events, resources and agents are, and the nature of the relationships between them
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An AIS Viewed as a Set of Give-to-Get Exchanges Give Inventory Get Cash Give Cash Get Inventory Give Cash Get Employee’s Time/Service Give Cash Get Cash Get Finished Goods Inventory Get Employee’s Time/Service Give/Use Raw Materials Give (Use) Machine Time & Services Revenue Cycle Expenditure Cycle Human Resources/Payroll Cycle Financing Cycle Production Cycle
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Basic REA Template for an Economic Exchange -- Revenue Goods Delivery Cash Receipt Cash Rects Clerk Customer Shipping Clerk Inventory Cash by to by for give get from
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Basic REA Template for an Economic Exchange – Expenditure Goods Receipt Cash Payment Cash Pmts. Clerk Vendor Receiving Clerk Inventory Cash by from by for get give to
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Basic REA Template for an Economic Exchange – Payroll Get Employee Service Time Ticket Cash Payment Payroll Clerk Employee Production Supervisor Employee Service Cash by from by for get give to
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Types of Entities An entity is any class of objects about which data is collected. The REA data model classifies entities into three distinct categories: 1 R esources acquired and used by an organization 2 E vents engaged in by the organization 3 A gents participating in these events
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Resources are defined as those things that have economic value to the organization. What are some examples?
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This note was uploaded on 10/25/2011 for the course AIS 141 taught by Professor Yanxiong during the Fall '10 term at CSU Sacramento.

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REA Online Version - Agenda REA The REA Data Model REA is a...

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