How would the process of generating a cash disbursements journal from the REA data model presented in Figure 18-4 and Table 18-1 differ from the process for creating a sales journal?
Howwould the process of generating a cash disbursements journal from theREA data model presented in Figure 18-4 and Table 18-1 differ fromthe process for creating a sales journal?
The method of making a cash disbursement journal varies differentlywith the process of developing a sales journal (Petty,Keown, Martin, & Burrow, 2015). From the beginning,the procedure involved in creating a cash disbursements journal, fromfigure 18-4 and figure 18-1, is much simpler than the method used tomake a sales journal. In this mention, I perceived that the cashdisbursements journal only encompasses an enterprise’s payments totheir suppliers. Nevertheless, while making these expenditures, thepayment of the company`s workforce, are usually noted distinctly withother payments made to suppliers (Petty et al., 2015). In addition tothe disparities, the view that the figures and information detailedin the cash disbursements journal only include the mode ofdisbursement and the date of the transaction. Other facts are thepayee details, the amount being paid, a short description of thepurpose of the payment, and the payment identifier (the cheque numberor the EFT business transaction no). Notably, all the requisites,necessary to provide information required by the cash disbursementsjournal, are all found in the cash event recording table. This factis disparate from the sales journal, whose information is dispersedin many event recording tables (Petty et al., 2015).
Whytake the time to develop separate REA diagrams for each businesscycle if the ultimate objective is to combine them into oneintegrated enterprise-wide data model? Why not just focus on theintegrated model from the start?
Perhaps,in this conclusion, I can say that the information required togenerate a cash disbursements journal unlike the sales journal isretrieved from enquiring from one table only. However, the inquirynoted above, will be constrained by the view that the supplier numberand the foreign keys have a given value. This notion construes thatthe supplier value can be null, if all the cash disbursements to berecorded, are meant for a payroll (Petty et al., 2015).
Perhaps,one of the most suitable approaches, to answer this question is toground it by division and conquering. In this take, advancing asingle separate business cycle eases, the establishment of all therelevant events, procedures, capital, and resources for theidentified period. More important, is the mention that, after all thenecessary capital, resources, processes, and agents have beenacknowledged, it becomes easier to ascertain the interactions andconnections amongst all variables in the identified cycle (Pettyet al., 2015). Remarkably, it’s even muchsimpler to dispense cardinalities on the interactions of the REAdiagrams for a particular identified business cycle, as theirrelationships and associations are openly exemplified on thecorporations’ business strategies (Petty et al., 2015).
Moreover, the data modeller demonstrates that asingle cycle REA diagram can be designed for employees who share inactivities (Petty et al., 2015).What`s more, is that the process construes surety that any importantsubject is taken into regard. As a matter of fact, the process ismoulded in a particular way to ensure that all the business policiesand procedures are well represented and working correctly.In this view, working with a single cycle REA diagram makes theemployee review process easier, by excluding information not relevantto any particular employee (Petty et al., 2015).In such a way, when each business cycle REA diagram is right, thedata modeller then comfortably conjoins the separate systems asillustrated in chapters 17 and 18 below (Petty et al.,2015). In fact, the combination can beadvanced without employee involvement, though the process willrequire management expert consultancy to authenticate itsaccurateness and inclusiveness (Petty et al., 2015).
Petty, J. W.,Titman, S., Keown, A. J., Martin, P., Martin, J. D., & Burrow, M.
(2015). FinancialManagement: Principles and applications.Pearson Higher
No related posts.