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Introduction The term REA defines mainly three categories i.e., Resources, Event, Agent.

So, Resources are those things that have economic value to the organization, it includes two entities such as Cash and Inventory. Event is the various business activities about which management wants to collect information for planning or control purpose. There are two entities Sales and Receive cash. Agent is the people and organization that participate in events and about whom information is desired for planning, control and evaluation purpose, such as Employee and Customer. (Hall2013, p 482-483) Feinman REA model of Sales/ Collection process Place Order Costumer

Inventory

Reverses

Take Order

Sales Clerk

Shipping Clerk

Ships Ship Product

Costumers

Increases Cash Receive Cash

Remits

Cash Received Clerk

In the above diagram it shows the flow of work to the different department, how they linked between each other to perform a single task, It shows that When Customer to the Feinman computers order the goods by internet or by hard copy (FAX), the system automatically places order to the Feinman then after order taken be generate in the system. Second step is to check inventory level which can or cannot be fulfilled the order given my agent. If it shows green light then process order has been done and sales clerk to be informed. Third step has to be Ship the goods to the customer and the mean time reduces the inventory level that has to be recorded. When the goods receive by ship clerk then after customer, final step has to be payment cycle, either way cash or credit. If is done by Cash it will receive the cash and increase in cash account otherwise it will go to the cash remittance clerk or Account receivable.(Cengage learning 2008)

Determining Cardinalities of Relationships The final step in drawing an REA diagram for one transaction cycle is to add information about relationship cardinalities. Cardinalities describes the nature of the relationship between two entities by indicating how many instances of one entity can be linked to each specific instance of another entity.. So, the relationship between the customer agent entity and sales agent entity in REA diagram of FEINMAN COMPUTERS represents a set. The customer entity represents the set of individual sales transactions that occur during the current fiscal period. Thus, in a relationship database each row in the sales table would store information about a specific sales transaction. Cardinalities define how many sales transaction can be associated with each other and conversely, how many customer can be associated with each sales transaction.(Black & Brown 2010,p 290) Cardinalities are represented by the pair of symbol next to an entity, the four row possible combination of minimum and maximum cardinalities. The Minimum cardinality can be either zero (0) or one (1), depending upon whether the relationship between the two entities is optional. The Maximum cardinalities can be either one or many depending upon whether each instance of entity A can be linked to at most one instance or potentially many instances of entity B.(Jones 2009,p 30)

Symbol

Cardinalities Minimum=0; Maximum=1

Example A

Meaning Each instance of entity A may or may not be linked to any instance of entity B, but can be

Minimum=1; Maximum=1

Minimum=0; Maximum=many

Minimum=1; Maximum=many

linked to at most one instance of entity B. Each instance of entity A must be linked to an instance of entity B, and can only be linked to at most one instance of entity B. Each instance of entity A may or may not be linked to any instance of entity B, but could be linked to more than one instance of entity B. Each instance of entity A must be linked to at least one instance of entity B, but can be linked to many instances of entity B.

Let us now use the information from above table, the cardinalities of Sales and Customer relationship. The minimum and maximum cardinalities next to the Customer entity are both one. This pattern is the same as that in row two. Thus, the minimum cardinalities of one next to the Customer entity indicated that each sale transaction must be linked to some specific customer. The maximum cardinalities of one means that each sale transaction can be linked to at most only one specific customer. This reflects normal business practices, only one legally identifiable customer is held responsible for a sale and its subsequent payment .Now look at the cardinalities pair next to the Sale entity as in row three in table , the minimum cardinality is zero, and maximum cardinality is many. The zero minimum cardinalities means that the relationship is optional, a customer does not have to be associated with any specific sale transaction. This allows Feinman computers to enter information about prospective customers to whom it can send. The maximum cardinalities are many indicating that a specific customer may and Feinman will be associated with multiple sale transaction. As we see in row four minimum is one and maximum is many, this means that every customer order or sale transaction must involved at least one inventory item but many involve multiple different item. The minimum cardinalities of zero reflect the fact that an order may not yet have been turned into an actual sale transaction. The maximum cardinalities of one indicate that Feinman shop fills all customer order in full rather than making a number of partial deliveries.(Romney & Steinbart 2009, p 559) The department of primary keys and attributes come from an understanding of each tables purpose, which result from a detailed analysis of user deeds the database designer should select a

primary that logically and unequally defines the nonkey attributes in the table. In some cases, this accomplishment with a simple sequential code, such as invoice number, check number, sales order number. In other situation block code, group codes, alphabetic codes and mnemonic codes are better choice. Some table attributes are common to all organisations and can be derived from common sense and adherence to best practices. Other attributes are unique to specify application and can be derived only from thorough and detailed analysis of individual user views. Each attribute assigned to a table should, however appear directly of indirectly in one or more user views. If data stored in a table are not used in a document, report, or calculation that is reported in some way, then they serve no purpose and should not be part of the database. Tables , Keys and Attributes Table name Inventory Primary Keys Item number Foreign key Attributes Description, Warehouse location , Quantity on hand, Reorder point, on order quantity, Available for sale, unit cost , Retail cost, Turnover ratio, Lead time, Usage rate, EOQ , Order quantity, Stock out history, Scrap history Cash Account number Verify availability Inquiry number Customer and Date, Start time , End time Balance

employee number Take order order number Inquiry number Costumer number Employee number Ship product Invoice number Order number Costumer number Employee number Receive cash Remittance number Costumer number Employee number Costumer Amount Check number ,Data, Invoice amount, Shipped date, Due date , Close date Order date, promised date, terms of trade

Costumer

Costumer name

Name,

Address,

line of credit,

Available credit, Current Balance, Last payment date Employee Employee number SSN , Name , Address, Date of birth, job title, Time hired, Pay rate, Vacation time accrued Inventory link Inventory link verify Item number Inquiry number order Item number Order number Quantity Requested , Quantity on Hand , Sale, Quantity Ordered

Inventory ship link

Item number Invoice number

Quantity Shipped , Actual Price

2)

REA MODEL OF K.CANNON

Flags items
Inventory Order product

Process
Purchasing Clerk

Receives Cause

Ships
Supplier

Increase
Receive Product

Receiving Clerk

Prepares

Duality Receives
Supplier

Decrease
Cash Disburse cash

Process
Cash Disbursement Clerk

In the above diagram it shows the flow of work to the different department, and show how they work together for a single task. Yes it shows the relation between departments. First of all when order is recognised, and recognizing the need of inventory, and clerk choose the supplier among the alternatives and do the order. The inventory title indicates the records will be adjusted to show the items are on order. At this stage they just place for goods but havent received yet means invent ory level will not increase The association between supplier and order product indicates that each order goes to only one supplier and that particular supplier have zero or many orders during periods. The second events entity is receive products, which is an economic event that causes a change in an economic resource. It increases the inventory. Goods are received from supplier and receiving clerk processes them. Which involves in counting, inspecting, transporting the products in into warehouse. The cardinality between order products and receive products implies that any point of time, an order may exists that has not been yet received. The third events represent is disburse cash. This is the economic event, in this event it causes the cash resources to be decreased. The association with the supplier entity implies that each disbursement during the period. The association with the supplier entity implies that each disbursement during the period. The association between disburse cash and receive products implies that each product receipt is paid in full but many receipts may be combined and paid with single disbursement to reduce check Tables , Keys and Attributes Table name Inventory Primary keys Item Number Foreign keys Attributes Description, warehouse location, Quantity on hand, Record point, Unit cost, stock history, economic order quantity, Available for sale, supplier number, retail price, lead time Balance Supplier number

Cash Order product Receive product Disburse cash Order product Receive

Accounts number Purchase order

Order date, expected delivery date, expected total price Receive report Supplier number, employee Date received, Carrier, Total Cash Disb. Number, number, purchase order amount Due, Due Account number number, Check number Check number Supplier number, Amount, date Purchase order Receive report Supplier number Order date, expected delivery date, expected total price Supplier number, employee Date received, Carrier, Total

product

Cash Disb. Number, number, purchase order amount Due, Due Account number number, Check number Supplier number Name, address, Terms of trade, Vendor lead time, carrier used, on time delivery record, incomplete shipment records, Damaged shipment records, Price dispute records Name, address, date of birth, Job title, and date hired, pay rate, vacation time accrued.

Supplier

Employee

Employee number

References :
Black ,A & Brown,P 2010, common characteristics, New University Press, Canada Jones, B 2009, alternate markets an introduction, New University Press, Canada Romney MB & Steinbart PJ 2009,accountin information systems, Pearson Prentice Hall, UK Hall JA 2013, introduction to accounting systems, Southern Western, Canada Cengage learning 2008, , introduction to accounting systems , view may 29,2013 http://www.uamont.edu/FacultyWeb/Hammett/PDF/AIS%20Solutions/Chapter%2010%20SM.pdf
Accounting Information System, 8th Edition, James A. Hall, chapter 10, page470 and 472.