Rea Model Project Summer 2017 Continue With Techarati Inc

Rea Model Projectsummer 2017continue With Techarati Inc A Medium Si

Rea Model Project Summer 2017 Continue with Techarati, Inc., a medium-sized computer retail sales company, and use the following summary of the Revenue cycle to complete the requirements below. Techarati sells computers, purchased from various vendors, to both individual and business customers. All customer orders are handled by a sales representative. Once inventory availability is verified, the order is filled and shipped to the customer by a warehouse clerk. If the entire order cannot be filled, the items which are available are shipped to the customer and the remaining items are shipped when they become available.

Customers mail in their payment based on an individual invoice received for each shipment which is due 30 days from the date the customer receives the order. Techarati does not utilize monthly statements. All cash receipts are processed by a cash receipts clerk and are deposited on a daily basis in the checking account. Using the information provided for Techarati, Inc. prepare an REA Data Model for the Revenue Cycle, including cardinalities using the guidelines and appropriate symbols as described in chapter 7 of the textbook. The REA model should be well-formatted, easy to follow, and include appropriate cardinality notations.

Prepare the REA model using LucidChart (submit as a pdf file). ALSO, create the appropriate table structures (chapter 8) which would be implemented in a relational database for this model. See the step-by-step guidelines on how to create an REA model in Lucid Chart with cardinalities and how to add the tables in LucidChart. Use the following format to create the table structures, similar to the approach used in class: Table Name Primary Key Foreign Key(s) Other non-key Attributes … Include at a minimum three non-key attributes for each table and at least 2 non-key attributes for M:N tables. Indicate a primary key for each table, and include foreign keys as necessary.

NOTE: Include the table structures in the same file as the REA model...i.e. Submit ONLY one file for this assignment.

Paper For Above instruction

The Revenue cycle of Techarati Inc. is a critical component of its overall business process, designed to facilitate the sale of computers and ensure proper recording of related transactions. Developing an REA (Resources, Events, Agents) data model provides a comprehensive view of the relationships among resources, business events, and agents involved in this cycle. This paper delineates the construction of an REA model based on the provided scenario, including the creation of relational database table structures with appropriate keys and attributes, and highlights the cardinalities involved.

Development of the REA Data Model

The REA model constructs a graphical representation emphasizing resources, events, and agents that interact within the revenue cycle. In the context of Techarati Inc., resources include inventory items such as computers, cash, and accounts receivable. Events include sales, shipments, and cash receipts, while agents comprise sales representatives, warehouse clerks, and customers.

The core events of the revenue cycle are the sales transaction, shipment, and cash receipt. A sales event occurs when a customer places an order, which is handled by a sales representative. Following sales, a shipment event is generated where inventory items are shipped; this is recorded and associated with the sales event. Upon receipt of the shipment, customers generate a cash receipt event when they pay their invoices, handled by the cash receipts clerk. These relationships are modeled in an ER diagram with cardinalities reflecting real-world constraints.

Cardinalities and Relationships

The relationships between resources, events, and agents are characterized by cardinalities. For example, a resource (inventory) can be associated with multiple sales events, and each sales event involves one or more inventory items (a many-to-many relationship that necessitates an associative entity or linking table). Similarly, each sale is handled by one sales agent, but a sales representative can handle many sales. Customers are linked to sales events, each customer may have multiple sales transactions, and each cash receipt is associated with a specific sale.

Figure 1 (not shown here but envisioned for LucidChart) will incorporate these elements, with symbols indicating cardinalities such as 1:1, 1:M, or M:N. Proper notation ensures clarity and adherence to the guidelines described in the textbook, with careful placement of crow's feet and other notation standards.

Table Structures

The relational tables derived from the REA model serve as the basis for implementing the database. Each table includes a primary key, foreign keys, and at least three non-key attributes. For such an example:

• Table: Customers
• Primary Key: CustomerID
• Attributes: Name, Address, PhoneNumber
• ...

The many-to-many relationships, such as between sales and inventory, are resolved by linking tables, for example, a SalesDetails table with foreign keys referencing Sales and Inventory tables, and additional attributes like Quantity and Price.

Final implementation ensures data integrity, normalization, and supports queries such as sales totals, inventory levels, and overdue accounts receivable, aligning operational needs with robust database design.

Conclusion

Constructing an REA data model for Techarati Inc. clarifies the relationships among resources, events, and agents within the revenue cycle. The graphical and relational representations provide a foundation for system development that improves data accuracy, operational efficiency, and managerial decision-making. By adhering to established guidelines for cardinalities and table structures, this model offers a reliable blueprint for implementing an effective accounting information system in Techarati Inc.

References

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