iso 15944-4 (the rea ontology) ontology = categories of interest in a domain and the relationships...

ISO 15944-4 (the REA ontology)• ontology = categories of interest in a domain and the

relationships among them• REA is a business enterprise (economic & accounting)

ontology with:– Exchanges– Policies– Plans

• For interoperability, REA is used:– in ISO Open-edi (ISO 15944-4)

– UN/CEFACT – as specialization module for the UMM

• For enterprise system, see Workday model• Standards use follows academic work of Geerts and

McCarthy• Interoperability use needs to move up the Obrst scale,

but frame-based semantics enable collaboration state machine

Normative business process pattern of REA model

Economic Event

Economic Agent

stockflow

duality

Economic Resource

participation

Cookie-Monster (the customer) and Elmo (the entrepreneur) meet in the (real or virtual) marketplace, thus setting the

stage for an Economic Exchange

Cookie-Monster (the customer) and Elmo (the entrepreneur) engage in a

SHIPMENT (transfer of Cookie Inventory)

Give

Take

Economic Resource

inside participatio

n

outside participatio

n

stock-flow

Economic Event

Economic Agent

Economic Agent

Economic Agent

Economic Agent

Economic Resource

duality

Economic Event

stock-flow

inside participatio

n


n

Cookie-Monster (the customer) and Elmo (the entrepreneur) engage in

a PAYMENT (transfer of Cash)

Give

Take

Economic Resource

inside participatio

n


n

stock-flow

Economic Event

Economic Agent

Economic Agent

Economic Agent

Economic Agent

Economic Resource

duality

Economic Event

stock-flow

inside participatio

n


n

Product#

Description

Price

QOH

P-1 Chocolate Chip

1.05 200

P-2 Chocolate .95 205

P-3 Peanut Butter

1.00 97

P-4 Pecan 1.10 257

Invoice#

Receipt Timestam

p

Amount Applied

I-1 2JUL0830 14.75

I-2 3JUL0800 2.00

I-2 5JUL0800 18.00

I-3 8JUL1145 9.90

I-4 8JUL1145 9.20

Invoice# Dollar Amoun

t

Date

Salesperson

Employee#

Customer #

I-1 14.75 1JUL E-1234 C-987

I-2 20.00 2JUL E-1235 C-888

I-3 9.90 3JUL E-1236 C-999

I-4 9.20 5JUL E-1237 C-999

Product# Invoice# Quantity

P-2 I-1 5

P-3 I-1 10

P-3 I-2 20

P-4 I-3 9

P-1 I-4 4

P-3 I-4 5

COOKIES

SALE

COOKIES-stockflow-SALE

SALE-duality-CASH_RECEIPT

Story of why this invoice amount to $14.75 ??

• Who ?• What ?• When ?

• Over what time period ?– Present and past

– Policy future

– Scheduled future

The REA Model (ISO Open-edi accounting & economic ontology) is a pattern for a business process

What actually occurred

What could be or should be

Rtype Etype Atype

Resource Event Agent

Color-coded time expansion

Harry

Jane

Named Set of Objects

Tom

Dick

Ashley

Typ

ifica

tio

n

Salespeople

Tom

Dick

Ashley

Abstraction

Harry

Jane

Named Set of Objects with Labeled Clusters

Group & Name Clusters Cashiers

Named Set of Groups

Cashiers

Salespeople

Economic Agent Type

Economic Agents

Operational Level

Planning & Control level

Economic Resource

EconomicEvent

Economic Agent

stock-flow participation

Economic Resource

Type

Economic Event Type

Economic Agent Typepolicy

typify typify typify

policy

meronymic

0..*1..1

PK

receive

duality

provide

0..*

stockflow

{incomplete, disjoint}

«EventType»ExpeditionType- expeditionTypeName PK

- expedExpectedTimeLength- standardUndiscountedSlotFee- expeditionTypeCapacity

«EconomicResource» SupplyItem

- supplyItemTypeNumber PK- supplyItemPrice- supplyItemQOH--

«EconomicResourceType»

SupplyItemCategory- supplyItemCategoryName PK- monthlySaleAmountOfSIC---

«EconomicAgentType»

EmployeeType

- employeeType PK- startingWageForEmpType- countOfEmployeesForType--

«EconomicEvent»

Expedition- expeditionNumber PK- slotsFilledForScheduleExped- actualDuration- scheduledExpeditionDate

«EconomicEvent» ExpeditionTicket

- ticketNumber PK- discountedSlotCharge- total$AmountOfSupplyItems- countOfSlotsOnThisTicket


AircraftType- aircraftTypeName PK- aircraftSeatingCapacity- aircraftFuelCapacity--

«EconomicResource» Aircraft

- aircraftEngineNumber PK- dateAircraftManufactured- aircraftName CK--

«EconomicAgent»

Employee- employeeNumber PK- employeeName-

«EconomicAgent»

ExpeditionWorker

- employeeNumber PK--

«EconomicAgent»

Guide- employeeNumber PK- dateQualifiedAsAGuide-

«EconomicAgent» BookingAgent

- employeeNumber PK- bookingAgentCommRate-

«EconomicAgent»

Pilot- employeeNumber PK- dateOfInitialPilotLicense-

«EconomicAgentGroup» People

- peopleName PK- approximatePopulation-

«EconomicAgent»

Client- clientNumber PK- clientName-

«EconomicEvent» CashReceipt

- remittanceAdvceNum PK- $AmountOfRemitAdvice- clientCheckNumber

«BusinessLocation»

Location- locationName PK- locationMapCoords CK-

distance- distanceBetween policy-sequence

- sequenceOfLocationOnTour

policy- qualifies- hoursFlown

stockFlow- quantityOfItemOnThisTicket

policy-count- countOfEmployeeType

«EconomicResource» Cash

- cashAccountNumber PK- cashAccountBalance-

receive

provide

participat1stockflow

participate

participate

policy

policy

typify

typify

typify1

0..*

0..*

0..*

site

0..*

0..*

0..*

0..*

0..*0..*

0..*

0..*

0..*

1..1

0..*

0..*0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

1..*

1..*

1..*

0..*

0..*

0..*

0..*

0..*

1..1

1..1

0..1

1..1

1..1

1..1

1..1

0..10..*

0..*

lead

groupgroup

0..* 0..*

0..1 0..1

0..*

typify

0..1

start finish

meronymic

0..*1..1

PK

receive

duality

provide

0..*

stockflow

{incomplete, disjoint}

«EventType»ExpeditionType

- expeditionTypeName PK- expedExpectedTimeLength- standardUndiscountedSlotFee- expeditionTypeCapacity

«EconomicResource» SupplyItem

- supplyItemTypeNumber PK- supplyItemPrice- supplyItemQOH-


SupplyItemCategory- supplyItemCategoryName PK- monthlySaleAmountOfSIC

«EconomicAgentType»

EmployeeType- employeeType PK

- startingWageForEmpType- countOfEmployeesForType

«EconomicEvent»

Expedition- expeditionNumber PK- slotsFilledForScheduleExped- actualDuration- scheduledExpeditionDate

«EconomicEvent» ExpeditionTicket

- ticketNumber PK- discountedSlotCharge- total$AmountOfSupplyItems- countOfSlotsOnThisTicket


AircraftType

- aircraftTypeName PK- aircraftSeatingCapacity- aircraftFuelCapacity

«EconomicResource» Aircraft

- aircraftEngineNumber PK- dateAircraftManufactured- aircraftName CK-

«EconomicAgent» Employee

- employeeNumber PK- employeeName

«EconomicAgent» ExpeditionWork

er- employeeNumber PK

«EconomicAgent»

Guide- employeeNumber PK- dateQualifiedAsAGuide

«EconomicAgent» BookingAgent

- employeeNumber PK- bookingAgentCommRate

«EconomicAgent»

Pilot- employeeNumber PK- dateOfInitialPilotLicense

«EconomicAgentGroup»

People

- peopleName PK- approximatePopulation

«EconomicAgent»

Client- clientNumber PK- clientName

«EconomicEvent» CashReceipt

- remittanceAdvceNum PK- $AmountOfRemitAdvice- clientCheckNumber

«BusinessLocation»

Location- locationName PK- locationMapCoords CK

distance

- distanceBetween policy-sequence

- sequenceOfLocationOnTour

policy- qualifies

- hoursFlown

stockFlow

- quantityOfItemOnThisTicket

policy-count

- countOfEmployeeType

«EconomicResource» Cash

- cashAccountNumber PK- cashAccountBalancereceive

provide

participatestockflow

participate

participate

policy

policy

typify

typify

typify

0..*

0..*

0..*

site

0..*

0..*

0..*

0..*

0..*0..*

0..*

0..*

0..*

1..1

0..*

0..*0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

0..*

1..*

1..*

1..*

0..*

0..*

0..*

0..*

0..*

1..1

1..1

0..1

1..1

1..1

1..1

1..1

0..10..*

0..*

lead

groupgroup

0..* 0..*

0..1 0..1

0..*

typify

0..1

start finish

What actually occurred

What could be or should be

Rtype Etype Atype

Resource Event Agent

Color-coded time expansion

What is planned or scheduled

Commit Event

Rtype

Etype

Atype

Negotiation

Identification

Planning

Post-Actualization

Actualization

Extended Business Process Model (ISO 15944-1

Accounting Model

Whole Business

Process Model

commitment reciprocal

fulfills

commitment

fulfills

economic event

duality economic event

Economic Event

Economic Resource

Economic Agent

stockflow provide

receive

Economic Commitment

reciprocal

fulfills

duality

Resource Type

typifiesspecifies

Event Type

Agent Typespecifies

specifies

typifies

typifies

participate

policy

policy

policy

1. Green – “What has occurred” – REA, duality, stockflow {consume, produce}, participation {provide, receive}

2. Yellow – What could be or should be – TYPES, typify, policy

3. Purple – What is planned or scheduled – COMMITMENTS, specify, fulfill, reciprocal, triggers

- manufacturingRunNumber PK- actualTotalT&MCost- toDateRunLaborCost- toDateRunMaterialCost- actualQuantityProduced

«EconomicEvent»Manufacturing Run

-operationTypeName PK

-standardSequence

«EventType»Operation Type

-employeeTypeName PK-startingWage

«AgentType»Employee Type

- scheduledOperationNumber PK

- scheduledSequence

«EconomicCommitment»Scheduled Manufacturing Operation

quantityOfRawMaterialPerUnit

policyBM

-scheduledMinutes

specify1

-minutesparticipate

-minutesUsed

used

-laborMinutesPerUnit

policyOL

-standardUnitCost-qOH

«EconomicResourceType»Raw Material Type

-rawMaterialCatalogNumber PK

-minutesNeededPerUnit

policyTM

-dateAcquired

«EconomicResource»Raw Material

-rawMaterialTagNumber PK

-quantityOwned

«EconomicResourceType»Tool-Machine Type

-toolMachineTypeDescription PK

-standardUnitCost

-qOH

«EconomicResourceType»Medical Equipment Type

-medicalEquipmentCatalogNumber PK

-standardGramWeight

-dateAcquired

«EconomicResource»Tool-Machine

-toolMachineNumber PK

-totalMinUsedSinceAcquis

-scheduledMinutes

specify

-scheduledQuantity

specify

- productionOrderNumber PK -budgetedTotalLaborCost-budgetedTotalMaterialCost

- projectedQuantityProduced

«EconomicCommitment»Scheduled Manufacturing Run

- budgetedTotalTool&MachineCost

-quantityUsed

used

-minutesparticipate

-minutesparticipate

- initiationTimestamp PK

- actualDuration

«EconomicEvent»Manufacturing Operation

- actualSequence

duality

participate

specify

produce

participate

typify

policyBM

fulfill

1..1

1..*

-medicalEquipTagNumber PK-actualGramWeight

«EconomicResource»Medical Equipment

-employeeNumber PK-employeeName

«EconomicAgent»Employee

-wage-dateHired

-employeeNumber PK

«EconomicAgent»Machinist

-employeeNumber PK

«EconomicAgent»Assembler

-employeeNumber PK

«EconomicAgent»Electrician

-employeeNumber PK

«EconomicAgent»Scheduler

-employeeNumber PK

«EconomicAgent»Supervisor

reciprocal

fulfill

typify

typify

typify

consume

participate

specifyspecify

1..1

1..1

1..1

1..1

1..1

0..*

0..*

0..*0..*

0..*

0..*

0..*

0..*

0..* 0..*

0..*

0..1

0..1

0..1

0..1

0..10..1

1..*

1..*

1..*1..*

1..*

1..*

1..*

{complete, disjoint}

0..*

0..*

0..*

0..*

0..*

0..*

0..*

1..1

1..1

1..1

1..1

1..*

1..*

1..*

0..*

0..*

0..*

0..*

0..*1..1

1..1

0..*

1..*

1..*

typify

1..1

0..*

• Who ?• What ?• When ? • Over what time period?• Why? (duality + sf = value chain)


A business process takes one or more kinds of input and creates an output that is of greater value to the

customer .

Conversion Process

labor

cookie ingredient

s

Acquisition Process

cash

cookies Revenue Process

cash

A value chain is a purposeful network of conversions and exchanges aimed at assembling the individual components of a final product (i.e., its portfolio of attributes) of value to

the customer

• Who ?• What ?• When ? • Over what time period?


• How? (through a series of small events that move business processes through to completion)

• Why? (duality + sf = value chain)

A business process takes one or more kinds of input and creates an output that is of greater value to the

customer .

Conversion Process

labor

cookie ingredient

s

Acquisition Process

cash

cookies Revenue Process

cash

A value chain is a purposeful network of conversions and exchanges aimed at assembling the individual components of a final product (i.e., its portfolio of attributes) of value to

the customer

• publish catalog

• make sales contact

• negotiate customer order

• ship goods (ee)

• send invoice

• accept payment (ee)

Workflow is a series of business events that progress a business

process through its phases, leading to eventual completion (ordering is determined by state machine

mechanics).

BT Phase Example Business Event

Planning Seller publishes Catalog

Buyer sends CatalogRequest to Seller

Seller sends Catalog to Prospective Buyer

Identification Buyer sends AvailabilityandPriceRequest to Seller

Seller returns AvailabilityandPriceResult to Buyer

Negotiation Buyer sends Offer to Seller

Seller sends CounterOffer to Buyer

Buyer accepts details of CounterOffer on Shipment and proposes PaymentSchedule

Seller accepts PaymentSchedule, completing Contract specification (alternatively, another CounterOffer would loop or a NonAcceptance would suspend or abandon the Business Transaction)

Actualization Seller sends an AdvanceShippingNotice when goods are prepared for shipping

Buyer sends ReceivingReport to Seller when inspected goods are accepted

Seller sends an Invoice to Buyer after parts are shipped

Buyer sends RemittanceAdvice to Seller with information about payment of the Invoice

Post-Actualization

Buyer sends WarrantyInvocation to Seller

An Example Business Process with Business Events Grouped in ISO 15944-1 Phases

Economic Event

Economic Resource

Economic Agent

stock-flow inside

outside

Economic Agreement

Economic Commitment

Economic Claim

materializes

settles

fulfills

establish

duality

Economic Resource

Type

typifyspecifies

Economic Event Type

Economic Agent Type

specifies

specifies

typify

typify

reciprocal

Business Processgoverns

Business Event

Business Process Phases

workflowValue Chain

networked

aggregate

EconomicResourceType

Candidate<<BusinessEvent>>

publishCatalogPlanned

<<BusinessEvent>>

sendAvail&PriceRequest

Proposed <<BusinessEvent>>

sendOffer

Identified

<<BusinessEvent>>

returnAvailabilityAndPriceResult

<<BusinessEvent>>

acceptOffer

Specified <<BusinessEvent>>

sendReceivingReport

Actualized

State Machine Diagram for Economic Resource Type

BUYER SELLER

<Business Event>

publishCatalog

<SharedBusinessEntityState>

:PlanningPhase

[InService]

<Business Event>

sendCatalog


:EconomicResourceType

[Candidate]


:PlanningPhase

[WaitingStart]

<Business Event>

generateResourceNeeds

<Business Event>

sendCatalogRequest


:EconomicAgent

[Candidate]

<Business Event>

receiveCatalog


:PlanningPhase

[Complete]

BUYER SELLER

<Business Event>

sendAvailabilityAndPriceRequest

<InternalBusinessEntityState>

:Order

[Prepared]

<Business Event>

sendOffer


:NegotiationPhase

[InService]

<Business Event>

receiveOffer



[Proposed]

<Business Event>

prepareOrder



[Planned]


:IdentificationPhase

[InService]

<Business Event>

returnAvailabilityAndPriceResult



[Identified]


:IdentificationPhase

[Complete]

BusinessProcess

BusinessProcess

BusinessProcess

Enterprise #1

BusinessProcess

BusinessProcess

BusinessProcess

Enterprise #3

Enterprise #2

BusinessProcess

BusinessProcess

BusinessProcess

Collaboration Perspective: Trading Partner vs. Independent

Independent view of Inter-enterprise events

Trading Partner view of Inter-enterprise events (upstream vendors and downstream customers)

Dotted arrows represent flow of goods, services, and cash between different companies; solid arrows represent flows within companies

Japan expert contribution to 15944-4, 22 Oct 2001, Victoria BC ,

embedded accounting & economic semantics

means better interoperability

“Scruffie” “Neat”The world consists of: 1. Classes or objects that are

• particulars--universals;

• occurrents--continuants;

• concrete--abstract;

2. associations between these entities/objects that are of the form• <particular , universal> e.g. is-instance-of,

• <particular , particular> e.g. is-part-of (also u-u)

• <universal , universal> e.g. isa (is-subtype-of)

3. declarations, procedures, and constraints

Need progress towards formal logic that enhances frame semantics with completeness, decidability, etc.

«EconomicEvent»

CashDisbursement

«EconomicResource»

Cash

stockflow3

«EconomicEvent»

ServiceAcquisition

duality1

+ -

stockflow1

stockflow2


Service(not usually materialized)

«ResourceType»

ServiceType

-quantity or amount

typify

«EconomicEvent»

ServiceConsumption- «EconomicEvent»

Some Inflow


AggregateResource

duality2 stockflow4

+

1. duality2 is often done by matching or absorption costing

2. Service acquisition event in the payroll cycle is signaled by:

• Time Card for hourly

• time period passage for salary (combination of period & person)

3. Use of services is often embedded in the actual worker’s event participation

Conceptual Congruency -- typical cases 1. typify2. fulfill3. parallel inputs 4. stockFlow (of services) 5. portfolio construction

A

B

association

1..1

1..1

-employeeNumber-buyerRating

«EconomicAgent»Buyer

-rawMaterialProductNumber

«EconomicResource»RawMaterial

-stepRequisitionNumber

«EconomicCommitment»ScheduledStep-standardQuantityForStep

specify1

1..*

0..*

-quantity-unitCost

stockflow

1..*

0..* 0..1

fulfill

-unitPrice-quantity

specify2

1..*

0..*

-vendor#-vendorAddress

«EconomicAgent»Vendor

1..1

0..*

participate2

1..1

0..*

provide(participate)

-jitAnalysisDocument#-jitAnalysisProcessDuration-

«BusinessEvent»JIT-Analysis

0..*

1..*

participate3

0..*1..1

participate1

0..*

1..1

1..*

0..1

analyzes

0..1

-purchaseOrder#-dueDate-POamount$

«EconomicCommitment»PurchaseOrder

0..*results

0..*

0..1

sourceOf

0..*

receive(participate)

-shipmentReceivingReport#-arrivalDate

«EconomicEvent»Shipment

UML – patterned use of meronymic associations to reflect component structures

<<EconomicEvent>>

Expedition

expeditionNumber PK schedExpeditionDate slotsFilled

componentOf

0..*1..1

PK

<<EconomicEvent>>

ExpeditionTicket

ticketNumber PK discountSlotCharge numberOfSlots countOfSlotsOnTicket

Associations with Plane, Pilot, Guide, Location

Associations with Client, Supply Items, Booking Agent

Other REA component possibilities:

• Agent: Team – TeamMember

• Resource: ResourceBundle -- ResourceComponent

iso 15944-4 (the rea ontology) ontology = categories of interest in a domain and the relationships...

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