Question

In: Accounting

Why is it not necessary to model activities such as enteringinformation about customers or suppliers,...

Why is it not necessary to model activities such as entering information about customers or suppliers, mailing invoices to customers, and recording invoices received from suppliers as events in an REA diagram?

Solutions

Expert Solution

REA Data Model:

REA is an apparatus that has assets, occasions, and operators. The REA information model is used to make information bases that are fundamental for exchange handling just as for the need of the executives investigation.

These information bases incorporate the accompanying occasions:

• Changing the quantity of assets.

• Indicate responsibilities to future trade occasions.

• When the executives need to design, assess and control any new exercises those data ought to be given. In any case, the exercises referenced in the inquiry don't meet any of these necessities.

The data identified with the Customer and provider is spared in separate lines of the client table and provider table.

• Most of the data is entered at the hour of formation of information base likewise when the client table and provider table are populated.

• Later, new lines would be entered when the administration needs to design, assess, and control occasions like:

o A business call.

o When another client approaches for a request.

o Placing another request with another provider.

A portion of the information handling exercises like report arrangement and arranging information from a structure are not unequivocally displayed on the grounds that these exercises neither change data for an asset not for the exercises that administration needs to control. Maybe, the data in the merchant receipt will be available in the buying history of the organization's information base too.

Along these lines, it isn't important to create an action unequivocally through the sends or recording them as receipt due to the occasions in the REA information model. Numerous organizations are proposing their providers to quit sending the solicitations. This is because of the Enterprise Resource Planning (ERP) framework like Accounting Information framework.


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