Chapter 7

Accounting
Team 07:
Guru Prasad
Nikku
Ted Beckstead
Manas Sharma
Kia Naziri

Agenda
An introduction to Accounting
General ledger schema
Periodic snapshot
Transactional schema

Budgeting Process
Logical flow
Fact tables

Summary

Accounting
Accounting is the information system that measures business activities, processes
data into reports, and communicates results to decision makers

Source: Wiley publications.

Topics to be covered:
General Ledger Book
Financial Statements
Balance sheet
Income statement
General ledger from 1828

A general ledger is a book/ERP contains all the accounts for recording

transactions relating to a company's assets, liabilities, owners' equity, revenue,
and expenses.

Image source: Wikipedia

Primary Data
Warehouse

Primary

~ General Ledger

General Ledger Schemas

Use two complementary
schemas
Capture different views of the General Ledger
business process.

1. Periodic Snapshot
State of accounts at the end of each
fiscal period
(month, quarter, year)

Aggregated state of accounts.

Most used

2. Transaction
Detailed journal entry transactions
When details needed.

Periodic Snapshot
Fact:
one row
per accounting period
per account

Measures:

Period
Period
Period
Period

End Balance
Debit Amount
Credit Amount
Net Change Amount

Grain: level of detail available in the chart of accounts.

Notes:
Currency: Store fact in multiple currencies
(1) local currency, (2) standardized corporate currency

Periodic Snapshot :
Dimensional Model
New Dimensions:

1. Accounting Period

Accounting period information

2. Account

Specific account information

3. Ledger

Name of subledger

4. Organization

Organization unit assigned to

account

Notes:
Date dimension: Role playing dimension with multiple hierarchies
(1) standard calendar, (2) corporate calendar, (3) accounting calendar

Transaction Schema
Fact:
one row for every general ledger
journal entry
a single transaction has at least
two entries
(double-entry
bookkeeping)

Measures:

Journal entry amount

Notes:
Currency: Store fact in multiple currencies
(1) local currency, (2) standardized corporate
currency

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Transaction : Dimensional
Model
New Dimension
1. Debit-Credit
Indicator
Quantifies the
fact as debit
or credit
Each
transaction
will have two
Notes: rows

Date dimension: Role playing dimension with multiple hierarchies

1. credit
(1) standard calendar, (2) corporate calendar, (3) accounting calendar

2. debit

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Budgeting Process
The budget process is the way an
organization goes about building its
budget.
Most modern systems include the
capability to include budget data into the
G/L
Need alternative mechanism if the G/L
either lacks this capability or has not
been implemented
Series of events

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Logical flow

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Budget fact table

Each row identifies
allowed spending by
an organization in the
company, for a
specific purpose
during a particular
time frame
Grain
Instead of status of
each line item, is the
net change of the
budget line item

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Commitments fact table

Main motive
monitor commitments
and compare them to
the annual budget to
manage spending
Commitment
document

Purchase order
Work order, or
Contract
Commitment Party

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Payments fact table

Relationship b/w
commitments and
payments manages the
companys cash
Commitment fact table
dimensions, plus
Payment dimensions
Type of payment
Payee

Fact Payment Amount

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What we
learned

Accounting
A general ledger
(G/L) is an account
or record used to
sort and store
balance sheet and
income statement
transactions.

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What we
learned

Schema
CEOs drill down on detail
of financial statements.
From Wall street to
Silicon Valley!

1.Periodic Snapshot
(summarized)
2.Transactional Data (similar to
OLTP)
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What we
learned

Budgeting
Budgeting Flow
Budgeting update

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Bus Matrix in Accounting

Processes
Main
Dimensions

Sche
mas
Budge
ting

1
2
3

Updat
ing
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Thank You!
Just Kidding! Go
watch GAME of
Read Ch. 7 of Kimbal
Thrones new
season.
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