CHAPTER8Accounting and Budgeting
Many accounting functions are very similar across enterprises. Enterprises need to record transactions, post these transactions to each internal organization's chart of accounts, set up budgets, track variances to their budgets, and report on the results of their business operations.
An accounting and budgeting data model needs to maintain financial information to answer many important questions that affect an enterprise's existence:
- What is the financial position of the enterprise, and how did this change from previous periods?
- What types of transactions occurred in each period, and how much of each transaction occurred? For instance, what payments were made to which invoices, and what invoices are still outstanding?
- What expenses were incurred during various periods?
- What effect did transactions such as depreciation, capitalization, and amortization have on the enterprise?
- What budgets were set up, and how did the enterprise perform compared to these budgets?
This chapter illustrates data models with the following types of information:
- Chart of accounts
- Business transactions versus accounting transactions
- Accounting transactions
- Accounting transaction detail
- General ledger account associations and subsidiary ledger accounts
- Asset depreciation
- Budget definition
- Budget revision
- Budget review
- Budget scenario
- Use and sources of budgeted money
- Budget versus general ledger
Chart of Accounts for Internal Organizations
Generally, the first step in ...
