Connections to the Real World

The information contained in a chart of accounts purports to describe the entire enterprise—albeit in terms of financial entities and transactions. The enterprise entity/relationship model also purports to describe the entire enterprise, but in terms of the business entities and transactions. Payment of an invoice against a purchase order is a business transaction, linked to the Parties involved and the Assets and/or Activities purchased. It is also a financial transaction, linked to the Accounts and Cost Centers involved. Clearly, this is a single transaction, so for information systems to be coherent, the two expressions of it must be properly linked. This entails linking Cost Centers to the Internal Organizations ...

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