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Zheng Wang
PROJECT
MASTER OF SCIENCE
ACCOUNTANCY
at
SPRING
2009
ACCOUNTING INFORMATION SYSTEM DESIGN
FOR A REVENUE CYCLE
A Project
by
Zheng Wang
Approved by:
Date /
I
ii
Student: Zheng Wang
I certify that this student has met the requirements for format contained in the University
format manual, and that this Project is suitable for shelving in the Library and credit is to
~Ir,~
Monica Lam, Ph.D., Associate Dean for Graduate and External Programs Date
iii
Abstract
of
by
Zheng Wang
technology resources together with traditional accounting controls and methods to provide
In this project, Resource-Event-Agent diagram (REA) is used as a tool for conceptual data
modeling, and Data Flow Diagram (DFD) is used as a tool for process modeling. The
simple REA and DFD Diagrams are used to explain what they are and how to design them.
information system is demonstrated for the revenue cycle of the Wale's Wholesaler. In the
example, REA model and DFD model for the revenue cycle are established first. Then
these two models are converted to Microsoft Access relational database using primary keys
iv
and foreign keys. In addition, Microsoft Access forms are designed for recording,
V
TABLE OF CONTENTS
Page
Chapter
1. INTRODUCTION .......................................................................... 1
4. SUMMARY ........................................................................................28
References ................................................................................................29
LIST OF TABLES
Page
Vlll
LIST OF FIGURES
Page
5. Figure 5 Event Recording Level O DFD for Wale's Wholesaler Revenue Process ....... 17
lX
1
Chapter 1
INTRODUCTION
The purpose of this project is to design an Accounting Information System (AIS) for Wale's
Wholesaler's business revenue cycle. Wale's Wholesaler is a hypothetical food and beverage
wholesaler that purchases goods in large lots from producers, breaks bulk, repacks and distributes
In this project, Resource-Event-Agents (REA) is used as a tool to design logical data model for
Wale's Wholesaler, and Data Flow Diagram (DFD) is used as a tool to design logical process
model. REA and DFD diagrams are then mapped to relational tables and forms in a Microsoft
This project is completed under the direction of Professor Xiong, Yan. I appreciate her guidance
Chapter2
the system of records a business keeps to maintain its accounting system. This includes the
purchase, sales, and other financial processes of the business. An AIS combines the study and
practice of accounting with the design, implementation, and monitoring of information systems.
Such systems use modern information technology resources together with traditional accounting
controls and methods to provide users the financial information necessary to manage their
organizations.
Figure I shows an example of the data inputs and information outputs from an accounting
information system.
transaction daia
_I I
j .. : ~~statements
.!
- IOVOtCeS
-1 Accounting System f · .f receipts
amendments to data f
I I
-: management information
,...-.,,,,.;;;x;;;; Z I IA <•»
AISs cover all business functions from backbone accounting transaction processing systems to
Financial reporting system starts at the operational levels ofthe organization, where the transaction
processing systems capture important business events such as normal production, purchasing, and
selling activities. These transactions are classified and summarized for internal decision making
Cost accounting systems are used in manufacturing and service environments. These allow
organizations to track the costs associated with the production of goods and/or performance of
services. In addition, the AIS can provide advanced analyses for improved resource allocation and
performance tracking.
Management accounting systems are used to allow organizational planning, monitoring, and
control for a variety of activities. This allows managerial-level employees to have access to
advanced reporting and statistical analysis. The systems can be used to gather information, to
develop various scenarios, and to choose an optimal answer among alternative scenarios.
The development of an AIS includes five basic phases: planning, analysis, design,
implementation, and support. The time period associated with each of these phases can be as
short as a few weeks or as long as several years. The first phase is the planning of the project.
This entails determination of the scope and objectives of the project, the definition of project
responsibilities, control requirements, project phases, project budgets, and project deliverables.
The analysis phase is used to both determine and document the accounting and business processes
4
used by the organization. Such processes are redesigned to take advantage of best practices or of
the operating characteristics of modern system solutions. The design phase takes the conceptual
results of the analysis phase and develops detailed, specific designs that can be implemented in
subsequent phases. It involves the detailed design of all inputs, processing, storage, and outputs of
the proposed accounting system. The implementation phase consists of two primary parts:
construction and delivery. The support phase has two objectives: I) to update and maintain the
AIS and 2) to continue development by continuously improving the business through adjustments
Resources, Events, Agents (REA) is a model of how an accounting system can be reengineered
for the computer age. The REA model was first conceptualized in a 1982 Accounting Review
paper as a framework for building accounting systems in a shared data environment that
anticipated the collaborative information systems settings of the present, both within enterprises
and between enterprises. It describes a business as a set of economic resources, economic events
The model's core feature was an object pattern consisting of two mirror-image constellations
that represented semantically the input and output components of a business process. The
REA acronym derives from that pattern's structure, which consisted of economic Resources,
REA treats the accounting system as a virtual representation of the actual business. It creates
computer objects that directly represent real-world-business objects. There is a separate REA
model for each business process in the company. A business process roughly corresponds to a
and financing.
Use of the REA approach can yield: (l)more efficient operations by helping identify
non-value-added activities, by storing financial and nonfinancial data in the same central database,
and greater support for management decisions; (2) increased productivity through the elimination
The key elements of REA model are resources, events and agents. Economic resources are
defined by ljiri [1975, pp 51-2] to be objects that (1) are scarce and have utility and (2) are under
the control of an enterprise. Cash and inventory are the example of economic resource. Economic
events are defined by Yu [1976, p 256] as 'a class of phenomena which reflect changes in scarce
economic events are sale, purchase and cash receipts. Economic agents include persons and
agencies who participate in the economic events of the enterprise or who are responsible for
subordinates' participation, including internal agents and external agents. Employees, such as
salespersons, cashiers, are internal agents. The venders and, customers are external agents.
There are many types of relationships in the REA framework: (1) stock-flow relationships, (2)
duality relationships, and (3) participation and control relationships. Relationships between
---- -------- -----------------
economic events and economic resources are called stock-flow relationships because they either
increase or decrease the resource--there is inflow or outflow of the resource as a result of the
event. In an economic exchange context, every resource increasing ( decreasing) economic event
will eventually have a corresponding resource decreasing (increasing) economic event. This
coupling between resource increasing and decreasing events is referred to in REA terms as a
duality relationship. Duality relationships link each increment in the resource set of the enterprise
with a corresponding decrement. (Ijiri, 1975, Ch.5). Increments and decrements must be members
of two different event entity sets: one characterized by transferring in (purchase or cash receipts)
and the other characterized by transferring out (sale or cash disbursement). Control relationships
are 3-way associations among (1) a resource increment/decrement (event), (2) an inside party, and
(3) an outside party. The responsibility relationships indicate that higher level units control and
information system. It is one of the most commonly used systems-modeling tools. DFDs show
the flow of data from external entities into the system and how the data moved from one process
to another. They are composed of four simple components: processes, flows, stores, and
terminators. The first component of the DFD is known as a process. It shows a part of the system
that transforms inputs into outputs. The process is represented graphically as a circle. Its name
will describe what the process does. A flow is represented graphically by an arrow into or out of a
process. It is used to describe the movement of chunks, or packets of information from one part of
7
the system to another part. The store is used to model a collection of data packets at rest. The
notation for a store is two parallel lines. A terminator is graphically represented as a rectangle,
represent external entities with which the system communicates. Typically, a terminator is a
Database
Usually, the overall DFD is organized in a series of levels so that each level provides successively
more detail about a portion of the level above it. The context diagram shows the overall context
of the system and its operating environment and shows the whole system as just one process. It is
a top level data flow diagram, and only contains one process node that generalizes the function of
the entire system in relationship to external entities. The level O diagram shows the main
processes of the system. Each of these processes can be broken into further processes. A process
model will have one, and only one, level- I diagram. A level O diagram must be balanced with its
parent context level diagram. Each process in the level O diagram is decomposed into an
even-lower-level (level 1) diagram containing its subprocesses, then continues on the subsequent
Chapter 3
Wale's Wholesaler (Wale) is a food and beverage wholesaler, located in the south Bay Area
California. It purchases goods in large lots from producers, breaks bulk, repacks and distributes in
small lots to local grocery stores. The revenue process of Wale's Wholesaler is very simple and
classic. Upon employment each salesperson is assigned to serve a separate group of customers. When
customer data are initially entered into Wale's information system, the customer is immediately
assigned to a salesperson. The new salesperson may works with a senior salesperson for a period. The
salespersons contact customers including potential customers by call or personal visits. These
contacting may get orders from customers. The sales order is transmitted to distributing team. The
distribute clerks distribute merchandise from warehouse to customers. One distribution may
contain one or several sales. One sales order may be distributed more than once if the items
ordered are not currently in stock. Then cashiers collect accounts receivables. Although the vast
majority of cash receipts come from customers (any particular cash receipt would be from only one
customer) for sales, some cash receipts come from other sources (e.g., bank loans). For this project,
we assume that all cash receipts are from customers. Every cash receipt is processed by exactly one of
Wale's several cashiers and is deposited into one of Wale's bank accounts. Some merchandise may
be returned for some reason. The return clerks process the return and issue allowance.
The key events relating to this revenue processes can be summarized as following:
9
As a result of applying the first eight steps, we will have a REA diagram, context diagram and a
level O DFD, and a set of tables. Then in step 9, we use Microsoft Access to implement a database
Let's now specify a detailed process of developing a REA model and related set of DFDs by
What is occurring is the significant event in the business cycle. The significant events related to
revenue processes in Wale's Wholesaler include: (1) Contacting existing and potential customers,
(2) Taking sales orders from customers, (3) Distributing ordered merchandise to customers, (4)
Collecting account receivables from customers after merchandise are distributed to them and (5)
Processing returns from customers and allowances to customers. In a REA diagram, the events
entities should be arranged in the middle with the earliest event at the top and the last at the
bottom.
When we consider the resource, we are looking for what is being used or obtained? Resources
typically have an "asset" connotation, such as inventory, cash. It's possible that there are multiple
resources associated with a single event. In this project there are three related resources:
inventory merchandise, cash and returned merchandise. Inventory is not a classical resource in
"sales call" event, but the main purpose to contact costumers is to get inventory sold. Inventory
decreases as a result of "sales order" event. Cash receipt leads to cash increase. The returned
merchandise is a result of"return and allowance" event. In the REA diagram, resources are drawn
11
to the left of events. A label is used to describe the relationship between the resource and the
event.
Agents are those who are involved in the business process. Agents could be within or outside the
organization, internal or external. Customers are the main external agents in the revenue process.
Customers are contacted by salesperson, sales orders are made to customers, and merchandises
are distributed to customers. The company receives returns and collects cash from customers.
Internal agents included in the project are salesperson, distribution clerk, cashiers and return clerk.
Salespersons contact the existing customers and the potential customers and take the sales orders.
Distribution clerks distribute the ordered merchandise. Cashiers collect accounts receivables.
Return clerks accept and process returns and allowance. There are also other employees in the
company, such as purchase representative, receiving clerks. But they are not involved in business
revenue process. However, all employee data would be stored in one employee table. In the REA
diagram, agents are drawn to the right of the events and a label descriptive of the relationship
The relationship between the events, resources, and agents identified in stepl to 3 must be
specifically identified. The "inventory" resource is related to the "salesperson" and "customers"
agents through the "contact customers" and "sales order" events. The "inventory" resource is also
12
related to the "distribution clerks" and "customers" agents through the "distribution" event. The
"cash" resource is related to the "cashiers" and "customers" agents through the "cash receipts"
event. The "returned merchandise" resource is related to the "returns clerks" and "customers"
agents through the "return and allowance" event. There is no direct relationship between
inventory and cash resources. Returned merchandise represents inventory that is sold early but is
returned later for all kinds of reasons. Not all inventory sold would be returned by customers.
There is no direct relationship between any two agents. There are interrelationships between
events. "Contact customer" event may result in a "sales order" event. The delivery of
merchandise ordered is a relationship between "sales order" event and "distribution" event. The
payment of distributed merchandise directly connects the "distribution" and "cash receipts"
events. There is also a direct relationship between "distribution" and "return and allowance"
events, for the merchandise delivered might be returned for any reason.
A basic diagram will result from application of the first four steps. Now we can expand the basic
diagram into an REA diagram by adding the optionality and cardinality of relationships. A
salesperson might have no customer contacts or have many customer contacts. Each customer
contact must be performed by at least one salesperson (two or more salespersons may visit
customers together). Each contact may talk about many inventory items, or none (some contact
might for other reasons). Each contact may result in one or more sales order. It's also possible
there is no sales order at all. Every sales order comes from one or several contacts. The loyal
customers may call salesperson to place orders without contact. One customer may have either
13
one or many sales orders or no orders. One salesperson can take more than one sales orders or no
order (new salesperson). A sales order must be placed by one customer and taken by one
salesperson. Every sales order may have at least one distribution. It is possible that the items
in-stock are not enough to fulfill one order. That will result in two or more distributions. Each
distribution may have at least one order. Sometimes, Wale combines two orders in one
distribution. Each distribution may have at least one inventory item. One type of inventory can be
on many distribution or no distribution (the item is never sold). Every distribution is exactly
distributed by one clerk, and one clerk can deliver many distributions, or none (new hired clerk).
A customer may be related to many cash receipts and every cash receipt is associated with one
customer. One cash receipt is related to at least one distribution, and one distribution has at least
one cash receipts. One cash receipt is collected by exactly one cashier, but one cashier can have
many cash receipts or none (new cashier). A customer may have one or more returns, but one
return is made by exactly one customer. Every return clerk may process many returns, or none
(new clerk). However, every return is taken by exactly one return clerk. A distribution may result
in many returns or no return. A customer may return many items from different distributions. So
one return may related to many distributions. One returned merchandise must relate to at least one
return.
Each resource, event and agent has a number of attributes. Attributes related to the "inventory"
resource include item number, price for sale, quantity on hand, reorder point, item name and
description. The attributes for the "returned merchandise" have a little different, including item
14
number, name, quantity returned, reason for return. For cash resource, it is necessary to record
Regarding the "contact customers" event, it is necessary to record the contact date, time, the
salesperson who made the contact, the customer to whom the contact was made, and the contact
result. The attributes of the "sales order" event include sales order number, date, items ordered
(name, price, quantity), salesperson who takes the order and customer who places the order. For
distribution events, the attributes include sales order number, the name and quantity distributed,
date, distribution clerk. The "cash receipts" event has following attributes: Check number,
customer, amount, date and cashier who make the receipt. Regarding the "returned merchandise"
event, it is necessary to record the customer who makes the return, date, returned item and
quantity, reason for return, returns clerk who accept the returns. It is also important to record the
All internal agents have the same attributes, including employee number, name, hired date,
birthday, address, telephone number, salary and the department. The customers' attributes include
customer number, name, contact information, account balance, and the credit limits.
Based on the above six steps, the REA diagram can be constructed now. For ease of exposition,
the Attributes are omitted. Resources are shown in the left column, events are shown in the
middle, and agents are shown in the right column. The "O" indicates an optional relationship. The
15
"1" indicates a mandatory participate relationship. The "N" indicates the "many" relationship.
INVENTORY
(0,N) (0,N)
(O,N)
'-'-'-"'-"-.,..-1,1)
Distribution
,,,__-T__ (1, 1
(1,N)
?lli'ffl!ff
ol
(!,~)
r--:::7(1,N)
l:=...J--c >--....-'-4 COLLECTIONS
RETURNED (1,N)
MERCHANDISE
Each significant event will need a recording process. Contact customers, sales orders, distribution,
cash receipts and returns and allowance are the events in this project requiring recording
information processes. Inventory, cash and returned merchandise are resource entities requiring
16
maintenance information processes. Customers and employees are the agent entities requiring
maintenance information processes. There are a lot of documents and reports that must be
generated through a reporting process, such as sales invoice, distribution documents, receipts of
The entire system can be view as one overall business revenue process. Inputs to process are
received from customers and employees. Outputs of system, information about order
acknowledge, receipts, credit-memos, go to customers. Based on this high level event, a context
Customers
order----
/ acknowledge Customers
Selespe,sons
Revenue
processing /
L~ c e i p t s
Re<
Distribution ~ii-memos
Clerk
Collecllon
~etalls
Retum~
~ etails
Re!ums clerk
The context diagram only shows input to and output from the overall system. A level O DFD can
show further details about process. In particular, recording process Level O DFD should be
constructed for the events on the REA diagram, maintenance process Level O DFD should be
constructed for all resources and agents on the REA diagram, and reporting process Level O DFD
should be constructed for all reports to be generated. These Level O DFDs show the specific steps
involved in the overall process and the data stores accessed and updated. Figure 5 is the recording
ISal!!spersons
) {
I- - - - - -
Ordsr Comacl
elalls 111.'ti!I!~
---------
Items distributed
table
Items ,elul"led
tabl~
A&j
Relurn~NKI
Returr11111 allowances table
ma1r11andn.e 1ablii
Figure 5: Event Recording Level O DFD Diagram for Wale's Wholesaler Revenue Processes
18
Now, we will convert the above REA diagram to relational tables--designing the data repository.
(2) Attributes are created for each entity and the primary key in each entity is identified,
(4) The primary key of the entity on the "one" side of a relationship is posted to the table of the
(5) A separate table is created for the relationship itself for entities participating in a many-to-many
relationship with the primary key of each table being posted to the new relationship table to form a
Figure 6: Tables
Table 1: Inventory
Foreign Key
Table 2: Cash
19
Foreign Key
Foreign Key
Attributes Contact ID, Date, Time, Employee ID, Customer ID, Result
Attributes Sales Order ID, Date, Item ID, Employee ID, Customer ID, Item Quantity
Table 6: Distribution
Attributes Distribution ID, Employee ID, Customer ID, Sales order ID, Date, Item ID,
Quantity
20
Foreign Key Employee ID, Customer ID, Item ID, Sales Order ID
Table 8: Returns
Attributes Returns ID, Item ID, Quantity, Reason, Date, Distribution ID, Customer ID,
Employee ID
Table 9: Employee
Attributes Employee ID, Name, Date Hired, Contact Information, Gender, Date of Birth,
Salary, Department
Foreign Key
Attributes Customer ID, Name, Discount Term, Credit Limit, Contact Information,
21
Balance
Foreign Key
Foreign Key
Attributes Return ID, Item ID, Quantity returned, Reason for return
Foreign Key
The first step in the implementation process is to create tables and designate the primary key. By
Double-click on "create table on design view", we get a table, then define each field. Following
22
are screen shots from Microsoft Access. Figure 7 and 8 are the design view and datasheet view of
General !-,ge>,lc~. .
fields~~
!Format
ilnput Mask
;Caption_________-C-------------
Default Value
!validation Rule
:ValidatiOfL!~::d - - - - ~ - - - - - - - - - ------
'R~quired_________~:N __o____________
1Allow Zero Lengt=h'-'-----CY..ce.c.s_ _ _ _ _ _ _ _ _ __
1
,Indexed Yes ~-4?:..Q.~plica~._ __
;Unicode Compression ,YeJ____________
. ~J...~Q-~~---------! Of!.____________
:IME Sentence Mod_e _,N_o_n_e_ _ _ _ _ _ _ _ __
iSmart T~_gs
....,....;.;.
,Af.' ·~~tlitte1' ~ ,. ~~"<;.~\aW.Jl1:.:•.~f<<j;J~:.t...(..:J,.,,1;,;~~·aaf!f$t~~h~~t.,;.',~;;..:,-)1c ,:/. h.:(i-'hf.iit:Yi,:. i/,/~(,;,b;: §;t<!JJ~~'...-,.,~i!11~)i~-1.t...i
,i,,:;,,~c:dr_;}!~~.!~~(,h'.td,h ;;.i~ t.
.~..;._HHI-----J ~~ shop . . . $?. !300. op . 1308 E !!:~..Ga,iaJl'!P J~1: Simt~u;t~~;-~4. . . , ~!?9.~P ...
· 'ffi, 4002 ·····- Carson ' s Marl$1, 896. 00 .. 968 HendersonAve .. stlllilyvale. ___CA_... 94q[6.
· ~._400]_____£,ali.h__an~t~ar.i::y $3,500. oo. 244 J7~h_gr~~.L ___ li_ar.i_Jose CA 951_~0____
r£ 4004 ______\'loods__ gas_ stat'. __ $1, 288. 00 __ 355_ VI Frement.. Ave .. Stlllilyvale __ ,CA ____ 94087___
.· r£ ,_4005 Mini llart _______ $J379. 00 201 _Pometory_Ave. _ Santa _Clara.. CA ____ 950_!?1____
.~ 4,~Q'L·_:__ =~ -~;i_~~ =~~k;i': : ·:~$ 2.-siaj):O:-_j_9'7<i.'iiu:~-~i ~;;_ Blvc:l ·.. ~ant;. ~i~~ fA~:·:.-_-:950_5(L--· :
· r±:,4006 . Disks Shop · $2,944.00 _10855 Western Ave San Jose 'CA 95123
ffi, 4008________ Dasah _market....... $5,.879. 00 _50505_ Stevens_ Creel Cupertino .. CA ____ 95014___ .
·- ,.~
•' .;!Fitem' [!B • ,, ", ... ;.,,,,Jt!l:JlJ:,.,.,,,.,cc,,".'"'''i,,.,c.,; ;~rx~:,.~.. .rz.. ~tJ.;:-,,. ~-~.PF,4~r",~-L~lfn9.2!,,,,,-;:,
1ffi 1111111 icoca--·Cola
---------·------~·- Classical
-·---·----·· Soda 2 .
-··-----······- . $1. 50 ..., ~----1000.
....
••- -
lOO'Coca Cola
-·· .. ·--- • $1. 20
., ........ .
8::70002 ___.Arizona_Arnold Iced Tea_42 ___ $1._00 ·-·•·lOOO__________lOOArizoJ!li.... $0.,70__
.J~]OQ.03_____Agu~_Hllll__Pyr-_j.Jied _W~t~ ..24~---- .$Ji. 5Q ....... __ ~OQ ____ ·- .. _19 Aquafill!l ____$6,.. 90 _
'ffi '.7.QO_O~ ... _ -- !l~!Jl?;,.!\'.~~}'_ s~_ci1. _!{~t_<::hl,lp_ f _____ $2, ~(3 .•... _!:iOO . ___ .. ....~9 Il_ei~ •· $2.__1_9 __
r±:70005 ___,Cheetos Crtmchy 13 Oz --··- $3.59______ 1000 ___________ 100Cheetos __ $3.20 ..
E£ 70006 _____ ·Lays Classic _11 Oz -··--·--· ______ $3. 00 ______1000 ·-· ·•--·- 100. ___________ $2,_50_.
··. ~JOOQJ ____ ~l,ld__l,.igi1_LLiJ!l!! __B_e~r..J._2~l2_.L H3._4!1..... __ 50Q _____ ... _5QBud 1.._ight $12.00 __
ffi 70008 ___ Kelloggers_Nutrigrain__Chen ___ $4. 49.,_____ 1000 ________ 100 KeHoggers $4. 00 _
r±: _70009____ Carnation Instant_ breakfas1 _$5._59 ____ 1000_____ ___ 100 Carnation___ $4. 49
~ '[9Q_l_O___ ...~!!!l_e_r~l __lI_i_l_ls _<:h_!:~;r,·J~s Ce!".L.. $], !59_, ____ 1ooq __ ..... !_OO_Ghec::;ri~s_____$3_. QO ..
After all the tables are created, we have to establish the relationship between these tables. Figure
8 shows the relationships of tables in our project. It maps to the REA diagram: the resource tables
in the left, the event tables in the middle and the agent tables in the right. The tables are
<:ontzctC0-,
. ~D>:.
lmtentory Date
Tiae 00
lt•D .Ji)
!aployee l • '
00 •,·
·-·
Sele' s Pri0
Quantity ..
lcldren
City
a;-...,.;.
u<h
Soles ord(J
-.m Eaployee l Cmtomer
AccRD.t laab• -l•
·-·
Cusloaer l •
Balmce
Bm Account B1
0
.
--·
Addnss
Custoaa {~\
!aployee 1- '
.!aounl
Reh.med.;_ c,o
i:t. . D
·-·
Quan.tiliH
Vmdar
lleuon
Date
• r7
Based on the above table structure, we can consider the various information processes involved
(i.e., recording, maintenance, reporting processes) and how they are implemented in Microsoft
Access. Step 3 is related to the recording and maintaining information processes. Step4 is related
3. Create forms
In this project, there are five significant events: contact costumer, sales order, distribution, cash
receipt and returns and allowance. For each event, a recording process database form is required.
25
The "Sales Order Form" shown below will be used to record information about the sales order
event. This form maps to process 2.0 (record sales order) in the Level ODFD.
Date I01/28/2008
Customer ID 14001
Salesperson ID !6001
Sales~tem
Item ID
Figure 12 and 13 are single table database forms. These forms related to maintaining information
process. Maintaining processes will be needed for each resource and agent entity on the REA
diagram. Figure 11 and 12 only show one resource (inventory) and one agent (employee). Each
form can be used to add, delete or update information about inventory and employee.
26
Quantity 1000)
Aeorder point 100j
Vendor !Coca Cola
Cost ! $1.20 i
► Employee ID
Name
r•
;Alice Brooks
Hired Date : 6/30/2006!
Accounting and other non-finance reports are generated through queries in Access. The reporting
process merely extracts data from one or more tables to provide the information that user required.
For example, we want to get a list of customers whose account balance is greater than $2000. A
query can be performed on the Customer table by specifying a criteria on the Account Balance
field. The following figure 14 and 15 show the Access query design view and the report for the
example.
Name ~
Account Balance
Address
Name
\Snac~2 _!l~p______ --~$2_, 900. 00 ...
1Cash and Carry Mart $~, 500. 00
-~------•_.D_i_s_k_s_S_h_op $2,_944.00
4007 ;Korea Market $2,888.00
4008 ;nasah market $5,879.00
Chapter 4
SUMMARY
This project presented a database view of business revenue cycle. An overview of related
business processes was first presented. A logical data model was then developed using the REA
approach. Applying the conversion rules, the REA model was converted to relational tables. From
a process modeling perspective, both a context diagram and a Level 0 data flow diagram (DFD)
were constructed. An Access implementation of the design was then demonstrated. Tables and
the relationships between tables in Access were described. A variety of Access forms for
implementing recording, maintaining, and reporting processes were also shown. Finally, the
process of generating a non-accounting report was shown. Using Access queries, listing of
REFERENCES
McCarthy, W.E. 1982. The REA accounting model: A generalized framework for accounting
McCarthy, W.E. 2003. The REA Modeling Approach to Teaching Accounting Information
Systems. Issues in Accounting Education: Vol. 18, No.4 November 2003 pp.427-441
http://en.wikipedia.org/wiki/Resources,_Events,_Agents
http://en.wikipedia.org/wiki/Data_flow_diagram
http://openlearn.open.ac.uk/mod/resource/view.php?id=16l611
http://www.enotes.com/business-finance-encyclopedia/accounting-information-systems
http://yourdon.com/strucanalysis/wiki/index.php?title=Chapter_9