An Architecture for Future Computer-Based Accounting Systems: Generating Formula Accounting Journal Entries from Tps Databases Using the Resources and Exchange Events (Ree) Accounting Model
Peter Beaufort Seddon · SSRN Electronic Journal · 1997
Assuming that almost all the data necessary for the generation of accounting reports is already captured by a firm's computer-based transaction processing systems (TPS), this paper asks: How can we best support the analysis of the detailed transaction data already captured by the firm's TPSs for the generation of accounting reports?. The solution proposed is that a program called an Interpreter should analyze data extracted from the TPS databases and generate formula accounting (FA) journal entries. Data requirements for the Interpreter are presented in the form of a conceptual accounting data model called the Resources and Exchange Events (REE) model. The REE model provides an integrated logical view of the TPS databases, that simplifies automatic generation of journal entries. Rules that need to be encoded in the Interpreter program for it to generate journal entries are discussed. To demonstrate the feasibility of the architecture, a prototype system was constructed.