FDM.Preface:2 - How the methods connect

FDM.1 recovers a financial position and distinguishes it from its descriptions. FDM.2 chooses the parties and grouping needed by the question. Either can provide an already sufficient answer. A lender explaining which entity owes an amount does not have to model an entire service.

FDM.3 uses adequate parties and terms to derive contractual events. A schedule describes what those terms require under their conditions. Scenario assumptions can produce an expected or conditional flow account; actual occurrences produce a performance account. FDM.4 establishes the effect of an actual event or action and can return a remaining obligation, a discrepancy or an unresolved institutional question.

FDM.5 follows a service output through its use to the participant’s intended financial result. It requests a position or effect model when that connection is unclear. Conversely, an accurately modeled financial change can raise the question of whose result it serves. These connections select the next needed result; they do not require all five methods for every use.

There is also a connection within the modeler’s present work. While interpreting a payment under contractual terms, the modeler can be deriving a remaining obligation and thereby constructing an account of the borrower’s position. Use B.1.5.EW — Recover How Constituent Actions Enact Encompassing Work when it is unclear how the present operation performs the encompassing work or which capability is missing. FDM.4:5.2 shows why correct subtraction can leave that work undone. A banking transfer being modeled is a separate occurrence, even when the modeler observes it while working.