Analytical study of 25 different ledger accounts transactions
The current invention is a software apparatus for journaling accounting transactions into a multi-dimensional data structure and for extracting those transactions from the multi-dimensional data structure and generating ledger accounts, balance statements and the other components of the Generally Accepted Accounting Principles GAAP.
A user either enters an acounting journal entry directly into the Multi-dimensional Accounting Engine or indirectly from another program or external file. The Multi-dimensional Accounting Engine converts the entry from its flat without dimension form into a multi-dimensional data structure such as the data structures prevalent in data warehousing.
The user can then use the Multi-dimensional Accounting Engine to, on demand, generate ledger acounts, balance sheets and financial statements. All of the recommendations of the GAAP can be generated dynamically using this invention. This invention relates to general accounting principles and analytical study of 25 different ledger accounts transactions software.
It will most likely be classified in Classin either Subclass 10 or Subclass Various accounting software applications have been developed and marketed. However, all of these applications have followed the conventional model that has dominated the accounting profession for over five-hundred years. According to that model, each business transaction is recorded in three different places.
The transaction is entered once in a journal an historical record of all transactions and then it is entered in two accounts in the general ledger. In one of the general ledger accounts it is recorded as a debit and in the second general ledger account it is recorded as a credit. The accounts in the general ledger are then treated as the primary source of transaction information in accounting, with the journal being used primarily as a backup to the general ledger accounts.
The Multi-dimensional Accounting Engine takes a revolutionary new approach to accounting. It treats the journal itself as the sole source of information for generating accounting reports and does not even enter the information in general ledger accounts.
In the conventional accounting analytical study of 25 different ledger accounts transactions, the general ledger accounts serve the purpose of categorizing the business transaction. In the Multi-dimensional Accounting Engine this categorization is performed through the dimensions in the underlying multi-dimensional data structure.
A dimension in analytical study of 25 different ledger accounts transactions computer data structure is an index that is used to access a piece of data. In a single dimension data structure an index of 4 accesses the fourth element in the row that makes up the single dimension. In a two dimensional data structure, the row index of 6 and the column index of 8 accesses the eighth element of the sixth row in the two dimensions that make up the data structure.
Any number of dimensions can be analytical study of 25 different ledger accounts transactions to the data. In the Multi-dimensional Account Engine, the function performed by the ledger accounts is satisfied by dimensions.
Each transaction has a debit dimension, a credit dimension, a calendar date dimension, and a description dimension, as well as any number of other dimensions that the business uses to categorize the transaction. This revolutionary multi-dimensional approach to accounting makes the Mulit-dimensional Accounting Engine a unique invention that has no precedent in the business world. A database search of the United States Patents was made and a large number of U.
No patent was found that conflicted with the current invention. The following is a list of those patents that had something in common with the current invention, although none of these patents approximated the intent, scope and purposes of the current invention:. This invention is a system for tracking the buying habits of consumers and creating direct advertisements that are sent to individual consumers based on the consumers' past purchases.
A database is used to store information on the consumers and each consumer is associated with at least one product cluster. Specific consumers are then targeted according to the cluster information. Although this invention provides the user with an analysis of consumer information, it performs this function by clustering data.
Furthermore, the Multi-dimensional Accounting Engine is primarily intended for journaling accounting analytical study of 25 different ledger accounts transactions and its ability to analyze customer behavior is ancillary to its primary function. An accounting system that is directed towards small businesses. The system processes predefined business transactions.
Each transaction contains a core part and an auxiliary part. The core part defines a specific accounting process and the auxiliary part contains data specific to the transaction. The two parts are assigned the same unique identifier number and then stored in two different storage mediums.
Any transaction can then be retrieved and reassembled using the unique identifier number. The core part defines analytical study of 25 different ledger accounts transactions accounts are affected by the transaction and generates updates to those accounts. In actuality, this patent has nothing in common analytical study of 25 different ledger accounts transactions the Multi-dimensional Accounting Engine other than the fact that it is a tool used for the accounting practice.
It does not use a multi-dimensional data structure and so does not use the analytical powers of dimensional slicing in order to dynamically generate the accounting reports. A business accounting system that allows transactions to be input at various remote locations and further allows access to the system by an agent of the business, such as an accountant, who is also at a remote location. The system provides a menu of financial transactions and itemization codes to facilitate the input of data.
The system is used to prepare and print income, expense, assets and liability analytical study of 25 different ledger accounts transactions. Again, this patent only relates to the Multi-dimensional Accounting Engine in that they both are used for accounting purposes and generate accounting reports.
It does not use the multi-dimensional data structure that the Multi-dimensional Accounting Engine does and does not offer the analytical power that the Multi-dimensional Accounting Engine does in generating accounting reports and other information creating analytical study of 25 different ledger accounts transactions.
A customer analysis system that assigns customers to demographic groups according to similar characteristics. The demographic groups are analyzed to predict customer behavior based upon past customer behavior, product preference, and propensity to respond to direct mailings.
In accordance with the present invention a complete accounting system can be managed by a single software engine that accepts business transactions and produces, at the user's request, all of the standard accounting reports.
The accounting reports are produced from an underlying data structure that categorizes data in any number of dimensions. Each dimension represents a different way of categorizing the transaction. Implicit in this model are the four dimensions necessary for the accounting process, the debit dimension, the credit dimension, the calendar date dimension, and the description dimension.
The objects and advantages of the present invention are:. All the accounting and bookkeeping functions of a business are reduced to the minimal effort of simply recording each business transaction.
Once the business transaction is recorded in the engine, all the accounting reports are performed automatically using the multi-dimensional aspects of the stored data. The Multi-dimensional Accounting Engine can be configured to maintain any number of additional dimensions besides the standard accounting dimensions of the debit account, the credit account, and the time.
Each additional dimension offers the business a different way to categorize the business transactions for the purpose of market analysis, expense tracking, and other interesting ways of forming information. Accounting analytical study of 25 different ledger accounts transactions can be dynamically generated as needed, rather than periodically e. Furthermore, the user can specify the range of time used in the analysis e.
Since general ledger accounts do not have any real existence in the Multi-dimensional Accounting Engine there is no duplication of data, a practice that is inherently dangerous and causes information systems to become inconsistent and conflicting.
It is important to note that general ledger accounts can be generated dynamically as reports if the user desires them. Because of the additional power that the multi-dimensional data model lends to the practice of accounting, the Multi-dimensional Accounting Engine can provide businesses with the analytical power to maintain inventory, design market approaches and predict future earnings in addition to what is currently accomplished by existing accounting paradigms.
The main embodiment of the present invention is illustrated in FIGS. A 1 introduces the concept of a multi-dimensional data structure to the reader. It is this data structure that lies at the heart of the invention and therefore should be understood clearly by the reader. A 2 is the real static description of the Multi-dimensional Accounting Engine. A 1 is a diagram of a typical multi-dimensional data structure.
If implemented in a realtional database each box in the figure would be a table the multi-dimensional data structure can be implemented in another form other than a relational database.
The primary characteristic of the design in FIG. Analytical study of 25 different ledger accounts transactions 1the fact table is represented by the box number 2. The dimension tables are represented by the boxes numbered 68101214and Each record in the fact table contains one or more amount fields e.
Further indexes in the fact record would reference records in the remaining dimension tables. Groups of the dimensions can be used in combination with each other to categorize the analytical study of 25 different ledger accounts transactions in the fact table.
A 2 is an illustration of the static specification of this invention. Each box in FIG. A 2 is a software component analytical study of 25 different ledger accounts transactions one or more objects, in the inventions object-oriented architecture.
Each component is named and numbered and given a short description. This component converts conventional, non-dimensional data, typical of accounting journal entries, into data analytical study of 25 different ledger accounts transactions has dimensions and is ready to be loaded into the underlying multi-dimensional data structure.
The data that is input into this component has a monetary amount as do all accounting transactions as well as the name of the account that is debited by the transaction and the name of the account that is credited by the transaction and the date of the transaction.
The Dimensional Transformer component is responsible for converting the name of the debit account to an index number in the debit dimension of the multi-dimensional data structure. It also is responsible for making this same conversion of the name of the credit account to an index in the credit dimension.
Any additional dimensions are handled the same way by the Dimensional Transformer component. The user is free to define his own definitions for the input data and is free to define the dimensions of the underlying data structure. The Dimensional Transformer is configured with both definitions and how they are mapped to each other before the journal entries are entered.
The definitions of the input data is given to the Dimensional Transformer by one of the two input components, either the User Interface component or the Bulk Loader component The definition of the underlying multi-dimensional data structure is read in from an external file. The Bulk Loader component first passes a definition of its input data to the Dimensional Transformer It then begins to pass large numbers of journal entries, in bulk, to the Dimensional Transformer The Star component contains a structure that is isomorphic with the underlying data structure.
For each dimension in the underlying data structure there is a dimensional component that is managed by the Star component. Examples of these dimensional components are the Debit componentthe Credit componentthe Calendar Date componentand the Description component Each of these dimensional components know how to convert input data into an index into the corresponding dimension in the underlying data structure.
The Dimensional Transformer component uses these dimensional components to actually perform the transformation of the individual dimension. The Data Module component is the software entity that manages the underlying multi-dimensional data structure.
The components numbered, and are logically simple components that use the multi-dimensional aspects of the Data Module component to produce accounting reports. The Dicer component is a module that allows the non-technical user to dynamically piece together dimensions in order to make an ad hoc analyitical study.
The Slicer component allows a user to choose between a number of pre-written analytical studies that have been developed by the user at an earlier time and that are stored with the Multi-dimensional Accounting Engine. This invention is operated from two perspectives, the perspective of the user who enters or journals business transactions FIG.
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What is a General Ledger? In other words, a book in which accounts are kept. Not ready for University study then browse over Journal Entry — General User Guide.
Clubs- Ledger Accounts are important. The ledger differs from other books in the way columns are drawn to record transactions as follows:. A note on suspense accounts About types of different accounts in ledger books and chart of accounts in accounting systems and more about Assets, Liabilities, Capital, Incomes and Expenses.
In a real business, there are so many accounts to keep and each account may need lots of space to record transactions for the whole accounting year. Almost half have more than accounts that are reconciled on a.
Financial Accounting and Reporting is the analytical study of 25 different ledger accounts transactions. On the general journal, enter the ledger account number in.
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