Discuss the concept of duality as it relates modeling an economic transaction

Answer 1

The rationale behind an economic transaction is that two agents each give the other a resource in exchange for another resource. In actuality, the exchange is a pair of economic events, which is expressed via the duality association in an REA diagram. Each economic event is mirrored by an associated economic event in the opposite direction. These dual events are the give event and receive event. From the perspective of the organization function being modeled, the give half of the exchange decreases the economic resource, as represented by the outflow association. The receive half of the exchange increases the economic resources represented by an inflow association. Note that an economic exchange does not require duality events to occur simultaneously. For example, inventory is reduced immediately by the sale to a customer, but cash may not be increased by the customer's remittance for several weeks.