@@ -51,7 +51,7 @@ or an educational license. For more information, contact info@nexedi.com
About strategy, executives often mention this word to hide the fact that they have no actual priorities for their ERP implementation.
</p>
<p>
Productivity - sometimes mentionned as efficient user interface - is also a way to escape from defining clear goals in terms of quantitative management. Real productivty derives
Productivity - sometimes mentioned as efficient user interface - is also a way to escape from defining clear goals in terms of quantitative management. Real productivty derives
from automation: an executive who has clear goals with thus explain how he plans to change organisation with the ERP and which part can be automated.
</p>
<p>
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<p>This question aims on identifying the output of the company, encompassing products, services or trading goods. Give the highest possible detail on what is sold (with hierarchy), where it is sold and to whom it is sold.</p><p>It is also possible to use ERP5 only for a department or special task in the organisation. In this case both the company's (generally) and the department's (detailed) products have to be documented.</p>
<p>This question aims at identifying the output of the company, encompassing products, services or trading goods. Give the highest possible detail on what is sold (with hierarchy), where it is sold and to whom it is sold.</p><p>It is also possible to use ERP5 only for a department or special tasks within the organisation. In this case both the company's (generally) and the department's (detailed) products have to be documented.</p>
<p>This question aims on identifying the input for the organisation. The input can be used, purchased or recycled by the company.</p><p>If you only use ERP5 for a department or special task in the organisation, make sure to describe the inputs explicitly for both the whole company and the department ERP5 is used in.</p>
<p>This question aims at identifying the input for the organisation. The input can be used, purchased or recycled by the company.</p><p>If you only use ERP5 for a department or special task in the organisation, make sure to describe the inputs explicitly for both the whole company and the department ERP5 is used in.</p>
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</section><sectionclass="illustration">
<h1>Question description</h1>
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<p>This question aims on identifying a process the company is handling successful. Ensure to describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out why this is a benefit for the company.</p><p>Additionally asking the 5-w questions helps ensuring that all facets are considered.</p>
<p>This question aims at identifying a process the company is handling successful. Ensure to describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out why this is a benefit for the company.</p><p>Additionally asking the 5-w questions helps ensuring that all facets are considered.</p>
<p>This question aims on identifying a process the company is handling wrongly. Describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out what could be improved.</p><p></p>Additionally asking the 6-w questions helps ensuring that all facets are considered.<p></p>
<p>This question aims at identifying a process the company is handling wrongly. Describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out what could be improved.</p><p></p>Additionally asking the 6-w questions helps ensuring that all facets are considered.<p></p>
<p>This question aims on identifying possible solutions based on the improvement potential.</p><p>Describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out why it is an improvement.</p>
<p>This question aims at identifying possible solutions based on the improvement potential.</p><p>Describe an explicit process with humans interacting. Give as much detail as possible about the time span for each sub-process and point out why it is an improvement.</p>
@@ -27,9 +27,8 @@ or an educational license. For more information, contact info@nexedi.com
<li>Profits</li>
</ul>
<detailsopen="open">
<p>The goal of this lesson is to teach accounting in a way which will be valid in the next 100 years or more. For that purpose, we introduce in the lesson
the concepts of accounting using a set theory formalism.</p>
<p>We believe that too much fashion, too many fuzzy words are used in the current approaches of accounting education. Students learn about the so-called
<p>The goal of this lesson is to teach accounting in a way which will be valid in the next 100 years or more. For that purpose, in this lesson we will introduce the concepts of accounting using a set theory formalism.</p>
<p>We believe that too much fashion and too many fuzzy words are used in the current approaches of accounting education. Students learn about the so-called
general accounting, which is not general at all and which is usually presented in a way which is specific to each legislation. Students learn about
the so-called cost accounting, which has no relation to costs. Students learn about analytical accounting, with a singular, instead of learning about
accounting analytics, with a plural. Students learn about activity based accounting, which is just one example of accounting analytics.</p>
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<p>The first concept in accounting is the <strong>Account</strong>. An account is a point in an arbitrary N-dimensional discrete space. Some people like to give names to those dimensions, names which will likely become irrelevant in a century. Dimension 1 is called “General Account”. It represents the economic nature of the account: income, expense, inventory, etc. Dimension 2, the “Party”, represents a supplier, a client, a business unit or any 3rd party. Dimension 3, the “Project”, represents a project in a company which does project management. Dimension 4, the “Activity”, represents activities such as gardening. More dimensions could be used to provide more powerful accounting analytics.</p></details></section><section>
<p>Governments, especially in countries of Civil Law, like to define an official space of accounts, called <strong>L</strong>. This space of account contains usually a few thousand standard account names which are required to be used to produce legislation dependent tax reports and exchange data.</p>
<p>This space of account can evolve. Many accountants believe that Dimension 1 of the space of accounts is the space of accounts provided by the government. This creates a lot of troubles each time the legislation changes or whenever a company has subsidiaries in different countries. </p>
<p>Governments, especially in countries of Civil Law, like to define an official space of accounts, called <strong>L</strong>. This space of account usually contains a few thousand standard account names, which are required to be used to produce legislation dependent tax reports and to exchange data.</p>
<p>This space of account can evolve. Many accountants believe that Dimension 1 of the space of accounts is provided by the government. This creates a lot of trouble each time the legislation changes or whenever a company has subsidiaries in different countries. </p>
<p>To solve all these problems, we define here a Legislation L as a mapping between the space of Accounts A and a single dimension discrete space which represents one possible legislation. Thanks to this approach, called indirection, our space of accounts no longer depends on political fashion, as long as A is a superset of L.</p>
<p>In countries, especially in countries of Common Law, governments prefer to define accounting principles through quite ambiguous rules. Those rules are then interpreted by chartered accountants who use their legal expertise to create their own space of account. It is like the Legislation L is provided here by chartered accountants instead of being provided by the government.</p></details></section><section>
<p>An accounting transaction is a finite series of sextuples. Each item is a finite series is called a transaction line.</p>
<p>Each sextuple is made of 3 couples The first couple represents the account of the transaction at the <strong>source</strong> and the amount in the currency of the source. The second couple represents the account of the transaction at the <strong>destination</strong> and the amount of the transaction in the currency of the destination. The third tuple represents the <strong>currency</strong> and the amount in that currency of the transaction.</p>
<p>Let us give an example to explain. If the source represents the supplier and if the destination represents the client. If the supplier sells a product to a client with a price expressed in USD. If the supplier is a company in Germany which operates in EUR and the client is a company in Japan which operates in JPY, the amount of the invoice is expressed in USD. The supplier registers the invoice in its accounting using for example an “Income” or a “Receivable” account and expresses the amount in EUR. The client registers the invoice in its accounting using for example an “Expense” or a “Payable” account and expresses the amount in JPY.</p>
<p>For example if the source represents the supplier and if the destination represents the client. If the supplier sells a product to a client with a price expressed in USD. If the supplier is a company in Germany which operates in EUR and the client is a company in Japan which operates in JPY, the amount of the invoice is expressed in USD. The supplier registers the invoice in its accounting using for example an “Income” or a “Receivable” account and expresses the amount in EUR. The client registers the invoice in its accounting using for example an “Expense” or a “Payable” account and expresses the amount in JPY.</p>
<p>We have just described the simplest universal model of an accounting transaction. In our example, the accounting transaction has 2 lines. One line with Income at the source and Expense at the destination. One line with Receivable at the source and Payable at the destination.</p></details></section><section>
<p>Account Transactions form a finite series called the Journal <strong>J</strong>. Each item of the Journal defines a date <strong>t</strong> and a transaction <strong>T</strong>.</p></details></section><section>
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<p>Legislation reports consist are tax reports which define the subset of accounts on which the total should be made through membership tests on the Legislation function L.</p></details></section><section>
<h1>An Example of Account Partition</h1><imgtype="image/svg+xml"src="http://img.erp5.cn/P-OSOE-Accounting.Mathematician-An.Example.of.Account.Partition.formula?format="/><detailsopen="true">
<p>Accountants like to create partitions.</p>
<p>First, they make a difference between accounts of “our” company, called here Aacme and other accounts. Inside Aacme, they make a difference between accounts called Asset, Liability, Income and Expense. Those accounts represent traditional ways of creating accounts based on legal principles, which are rather universal. Yet, in some countries, Capital is considered as a 5th partition item whereas in others Capital is part of Liabilities. This is just a matter of Habit and Law.</p>
<p>Other ways of partitioning could be introduces of course.</p></details></section><section>
<p>First, they differentiate between accounts of “our” company, called here Aacme and other accounts. Inside Aacme, they make a difference between accounts called Asset, Liability, Income and Expense. Those accounts represent traditional ways of creating accounts based on legal principles, which are rather universal. Yet, in some countries, Capital is considered as a 5th partition item whereas in others Capital is part of Liabilities. This is just a matter of Habit and Law.</p>
<p>Other ways of partitioning could be introduced of course.</p></details></section><section>
<p>Accounts then define words, based on the partitioning. Profit is for example of the sum of transactions lines amounts for accounts which are either Income or Expense. Remember here that Expense is a negative value and Income a positive value, since we do not use Debit or Credit.</p></details></section><section>
