Model financial positions and effects
Financial Domain Modeling helps a financial practitioner, business modeler or service designer establish whose financial position a model describes, what events can change it and how a service contributes to a participant’s result. Its five methods connect parties, rights and obligations, contractual flows, actual effects and service use.
| Working question | Start with | Result |
|---|---|---|
| What financial position does this record describe? | FDM.1 - Recover the Financial Position Behind a Record | The relevant rights, duties and record claims for the stated party. |
| Which party or group has this financial position? | FDM.2 - Choose Party and Group Boundaries for Financial Modeling | Boundaries that distinguish the debtor, entity or group and the cash it can use. |
| Which contractual events and payments can follow? | FDM.3 - Derive Events and Conditional Flows from Financial Contract Terms | A schedule of contractual events and conditional flows, distinguished from actual flows. |
| What did the approval, posting or payment actually change? | FDM.4 - Establish What a Financial Action Changed | The established financial effect and any remaining obligation under the applicable rules. |
| How does this financial service help the participant? | FDM.5 - Trace a Financial Service to a Participant’s Result | A connection from the service output to its use and the participant’s result, such as admission or financial benefit. |
Use Semantic Integration Engineering when separately governed meanings or identities need reconciliation. Financial Domain Modeling supplies the financial interpretation; the relevant decision practice uses it.