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Subject: RE: description for REA diagram



>Bob Haugen said,
>>* Notify of Shipment results in a Shipment (an Economic Event)
>>  which should fulfill one or more of the Purchase Order Line Items.
>>
>>* Process Payment results in a Payment (an Economic Event)
>>  which pays for the Shipment (the REA "duality" relationship).

Todd Boyle asked:
>Questions:  

>Under what circumstances does Shipment (an Economic Event)
>result in the creation of an account receivable or claim, 
>(an Economic Resource) as its duality relation?

If the EconomicContract terms specify pay-on-receipt.
The claims would be processed in the trading partners' 
internal business systems.  

>If this example business process does not create an account
>receivable, then, what business process DOES create one?  And,
>how can the student decide between cases that do/don't create
>a receivable?

If the Economic Contract specified pay-on-invoice, 
then the business process would have another collaboration,
e.g. Process Invoice.  If the contract specified self-
invoicing, then there would be a Self-Invoice collaboration.
In either case, the receivable would be created based on
the invoice.

If students were reading the business process diagram
and explanation, they would know from the additional
note that I will put in based on this dialog.

I did not put an invoice in the process because, while
claims are part of REA, they are not yet part of the
UMM metamodel which is the foundation for ebXML
business process models.  We expect them to be
added to UMM at the next UN/CEFACT TMWG
meeting.

Regards,
Bob Haugen


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