Several accounting firms are collaborating on the design of UML models and XML notation for ArapXML, formulated in response to an OMG RFP issued earlier in 2001: Account Receivable - Account Payable AR/AP Facility. Request For Proposal. The Project "includes research, discussion, documenting use cases and requirements, and finally, publishing XML and UML specifications. ArapXML is a pure document format for representing General Ledger data as simply, completely, and efficiently as possible. It contains no security features, method calls, etc. It is equally usable with Java, linux, or COM, or scripting languages. ArapXML enables exchange of transactions based on classic double-entry accounting. It is designed for individuals and companies who use software or services from multiple vendors to conduct business. ArapXML is based on UML models. It consists almost entirely of a subset, or synonyms, of ebXML core component vocabulary. It is interoperable with established e-commerce vocabularies such as EDI. ArapXML applies an objective approach to determine the integration needs of small business and individuals as well as large companies, by reference to accounting history, accounting patterns, and existing software. ArapXML aggregates receivables and payables from multiple systems or BSPs, whenever the decision is made to manage and settle them at a single place. This activity can be performed by the owner using an existing local application, as well as a web-based GL or payments and settlements provider. The ArapXML schema is not biased in favor of web-based accounting ASPs or BSPs. It exports as well as imports."

Problem statement: "There are thousands of good, functional applications available on the internet. The Internet is the operating system and web apps are the programs. When the owner has two or more business applications, the total cash, payables, receivables, and tax reporting requires consolidating into a general ledger someplace. The alternative to component architecture is the monolithic system from a single vendor. ArapXML supports the component vision in a small way, by providing a document format for general ledger transactions... Now that we have the internet, the N-squared problem arises because of the number of applications which must communicate with each other. Any healthy scenario having widespread use of the internet by SMEs implies a large number of specialized, vertical applications from multiple providers... The purpose and scope of a 'General Ledger' most commonly includes financial reporting, tax reporting, and maintaining external balances (cash, and payables and receivables or control over the subledgers that maintain them). arapXML enables exchange of transactions based on classic double-entry accounting. It is designed for individuals and companies who use software or services from multiple vendors to conduct business."