Accounting Unit

The Accounting Unit entity represents something that can be measured, and is qualified by the Accounting Unit Type classification entity. The Accounting Unit entity can then be associated with any other fundamental concept, such as an arrangement or an involved party. This association represents the link to what is tracked by the accounting unit.

Figure 1. Data model for Accounting Unit
Data model for Accounting Unit
You can use accounting units to track, for example the total number of:
  • Loan repayments that are made in the current quarter on F. Bloggs’ home loan account
  • Credit events that are triggered by customer J. Soap
  • Transactions that are processed by the ATM in High Street in the current month
Three accounting units are described in this diagram, with three accounting unit types that indicate what is measured and a link through an associative entity to the object of the measurement.