Database Design Process and REA Modeling

System analysis

Initial planning for new system feasibility.

Conceptual design

Developing schemas at various design levels.

Physical design

Translating schemas into actual database structures.

Implementation and conversion

Transferring data and training users on new system.

Operation and maintenance

Monitoring system performance and user satisfaction.

Data modeling

Defining a database to represent organizational aspects.

Entity-relationship (E-R) diagrams

Graphical representation of relationships between entities.

Entity

Any item for which information is collected.

REA data model

Model designed specifically for Accounting Information Systems.

Resources

Items of economic value to the organization.

Events

Business activities for which information is collected.

Agents

Participants in events, both internal and external.

REA model

Focuses on transaction processing and value-chain activities.

Give-get duality

Economic duality linking events in REA model.

Cardinalities

Indicate relationship nature between two entities.

One-to-one relationship

Each entity in relationship has maximum of one counterpart.

One-to-many relationship

One entity relates to multiple instances of another.

Many-to-many relationship

Multiple instances of each entity relate to each other.

Give-Get Exchanges

Transactions reflecting economic duality in REA model.

Relevant events

Events significant to the organization's operations.

Basic value-chain activities

Core activities generating revenue and utilizing resources.