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3-1

CHAPTER 3
SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
3.1 Identify the DFD elements in the following narrative: A customer purchases a few
items from a local grocery store. Jill, a salesclerk, enters the transaction in the cash
register and takes the customers money. At closing, Jill gives both the cash and the
register tape to her manager.

Data Flows: merchandise, payment, cash and register tape

Data Source: customer

Processes: capture sales and payment data and collect payment, give cash and register tape to
manager

Storage: sales file (register tape), cash register

3.2 Do you agree with the following statement: Any one of the systems documentation
procedures can be used to adequately document a given system? Explain.

It is usually not sufficient to use just one documentation tool. Every tool documents a uniquely
important aspect of a given information system. For example, system flowcharts are employed to
understand physical system activities including inputs, outputs, and processing. In contrast, data
flow diagrams provide a graphic picture of the logical flow of data within an organization.

Each alternative is appropriate for a given aspect of the system. As a result, they work together to
fully document the nature and function of the information system.

Ch. 3: Systems Development and Documentation Techniques


3-2
3.3 Compare the guidelines for preparing flowcharts and DFDs. What general design
principles and limitations are common to both documentation techniques?

Similar design concepts include the following:

Both methods require an initial understanding of the system before actual documentation
begins. This insures that the system is properly represented by the diagram.

Both measures require the designer to identify the elements of the system and to identify the
names and relations associated with the elements.

Both methods encourage the designer to show only the regular flows of information and not
to be concerned with unique situations.

Both approaches require more than one pass through the diagramming or flowcharting
process to accurately capture the essence of the system.

The product of both methods is a model documenting the flow of information and/or documents
in an information system. Both documentation methods are limited by the nature of the models
they employ, as well as by the talents and abilities of the designer to represent reality.
Accounting Information Systems


3-3
3.4 Your classmate asks you to explain flowcharting conventions using real-world examples.
Draw each of the major flowchart symbols from memory, placing them into one of four
categories: input/output, processing, storage, and flow and miscellaneous. For each symbol,
suggest several uses.

The major flowcharting symbols and their respective categories are shown in Fig. 3.8 in the text.

With respect to how the symbols are used, student answers will vary. Possible examples include
the following:

Input/Output Symbols
Document: an employee time card, a telephone bill, a budget report, a parking ticket, a
contract
Display: student information monitors, ATM monitors, the monitor on your microcomputer.
Manual input: cash registers, ATM machines

Processing Symbols
Processing: processing a student payroll program, assessing late fees
Manual operation: writing a parking ticket, preparing a paper report, collecting and entering
student payments

Storage Symbols
Magnetic disk: alumni information data base, a report stored on your PC hard disk
Magnetic tape: archival student information
On-line storage: a student information data base or an airline reservation data base stored
on-line.
File: purchase order file for a department, a student housing contract file

Flow (Miscellaneous)
Communication link: a telephone linkage that connects you to an on-line data base.
Ch. 3: Systems Development and Documentation Techniques


3-4
SUGGESTED ANSWERS TO THE PROBLEMS

3.1 Prepare flowcharting segments for each of the following operations:

Assorted Flowcharting Segments:

a. processing transactions stored on magnetic tape to update a master file stored on
magnetic tape
Old
Master
File
New
Master
File
File
Update
Trans-
actions



b. processing transactions stored on magnetic tape to update a database stored on a
magnetic disk
Trans-
actions
File
Update
Data
base



c. converting source documents to magnetic tape using a computer-based
optical character reader (OCR)

OCR Source
Documents
Conversion of
Documents to
Tape by OCR
Source
Data



d. processing OCR documents online to update a database on magnetic disk

Data
base
OCR Source
Documents
Update
Data base


Accounting Information Systems


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3.1 (continued) Assorted Flowcharting Segments

e. reading data from a magnetic disk into the computer to be printed on a report


Data
File
Report
Report
Generation



f. using a computer or terminal to key data from source documents to a file stored
on a magnetic disk


Source
Documents
Data File
Key Data
Terminal


g. manually sorting and filing invoices numerically


Invoices
Sort
Numerically
Invoices
N


Ch. 3: Systems Development and Documentation Techniques


3-6
3.1 (continued) Assorted Flowcharting Segments

h. using a terminal to enter source document data and send it to a remote location
where an online processing system records it in a database stored on magnetic
disk

Source
Data
Terminal
Online
Processing
System
Data
base




i. a scheduled automatic backup of an internal hard drive to an external hard
drive


Scheduled
Automatic
Backup
External
Hard
Drive
Internal
Hard
Drive



j. using a terminal to query customer sales data maintained on a magnetic disk



Enter Query
Display
Query
Customer
Sales Data
Database


Accounting Information Systems


3-7

3.1 (continued) Assorted Flowcharting Segments

k. enter employee hours recorded on time cards in the payroll transaction file
maintained on disk and update wage data maintained on the payroll master file



Enter Time
Card Data
Time Card
Record time card data on the
payroll transaction file and
update wage data maintained
on the payroll master file
Payroll
Transaction
File
Payroll
Master File
Terminal












Ch. 3: Systems Development and Documentation Techniques


3-8
3.1 (continued) Assorted Flowcharting Segments

l. use a terminal to access a price list maintained on disk to complete a purchase
order. An electronic copy of the purchase order is sent to the vendor and a
backup copy is printed and filed by vendor name

Access Price List, create
electronic purchase order
& print a paper backup
copy
Price
Data
Purchase Order
(paper)
A
Purchase Order
(electronic)
To Vendor


m. update an airline reservation on a Web-based airline reservation system from a
home computer

Request, complete,
and submit an
online reservation
change form
Revise reservation
data on web-based
airline reservation
system
Reservation
File
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3.2 Happy Valley Utility Company

a. Draw a system flowchart of the billing operations, commencing with the
computer preparation of the meter reading forms and ending with the mailing of
customer bills.

Customer
Master
File
Meter Form
Preparation
Meter Forms
Enter
Current
Reading
Completed
Meter Forms
Mark-Sense
Document
Reader
Customer
Meter
Data
Mail to
Customers
Sort By
Cust #
Customer
Meter
Data
File Update
and
Billing
Customer
Master
File
Error List
& Summary
Report
Customer
Bills

Ch. 3: Systems Development and Documentation Techniques


3-10
3.2
b. Draw a system flowchart depicting customer payments processing, starting with
the mail room operations and ending with the two printed reports.

Checks
Remittance
Stubs
Compare
&
Separate
Checks To
Cashier
Correct
Stubs
Incorrect
Stubs
List of
Other
Receipts
Type
Correct
Stubs
Type
Correct
Stubs
Corrected
Stubs
Corrected
Stubs
Customer
Master
File
Error List
& Summary
Report
Report of
Past-Due
Accounts
OCR
Document
Reader
Payments
Posting
Run

Accounting Information Systems


3-11
3.3 Prepare a system flowchart of the process described.

Payroll Processing for Dewey Construction Company:

Paycheck
Job Time
Tickets
Key to
Tape
Encodings
Job Time
Records
Tape
Payroll
Processing
System
Payroll
Master
File
Work in
Process
Master
File
Payroll
Register
Earnings
Statement Error
Transactions
and Summary
3-12
3.4 Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.

From
Claimant
4
3
2
1
Proof of
Loss Form
Assist
Claimant
with Form
Prepare
Separate
Report
Adjuster's Report
4
3
2
1
Proof of
Loss
To
Claimant
N
START
From
Claimant
Notice of Loss
Prepare
proof of
loss, claim
recored
Notice of Loss
Claim Record
4
3
2
1
Proof of
Loss Form
To
Claimant
Adjuster's Report
2
1
Proof of
Loss Authorize
Claim
Payment
Adjuster's Report
1
Proof of
Loss
A
Notice of Loss
Claim Record
N
2
Proof of
Loss
Prepare
Check &
Disbursement
list
2
Proof of
Loss
Disbursement
List
Check
To
Claimant
ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING
To Accounting
3-13
3.5
a. Prepare a document flowchart that indicates the interaction and use of these
documents among all departments at Beccan Companys central facility. It should
provide adequate internal control over the receipt, issuance, replenishment, and
payment of tires and supplies. You may assume that there is a sufficient number of
document copies to ensure that the perpetual inventory system has the necessary
basic internal controls.
b. Using the flowcharting conventions discussed in Focus 3.2, critique the instructor
provided CMA solution. List all the ways the CMA solution violates those
flowcharting guidelines.
Adapted from the CMA Exam. Note: the CMA solution shown does not follow the flowcharting
conventions discussed in the chapter. When the authors use this problem they have the students critique
the CMA exam solution (assignment 3.5b), based upon the conventions discussed in Focus 3.2.
Ch. 3: Systems Development and Documentation Techniques


3-14
3.6
a. Prepare a context diagram and level 0 DFD to document the payroll processing
system at No-Wear Products.

Context Diagram for the payroll processing system at No-Wear Products


Operating
Documents
Human
Resources
Department
Payroll
Processing
System
Employee
Management
Governmental
Agencies
Time Card Data
Employee
Paychecks
Internal
Reports
Withholding
Reports
Personnel Data

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3.6 a. (continued.)
Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.

Operating
Departments
Human Resources
Department
1.0
Process
Employee
Timecards
2.0
Update
Payroll File
3.0
Generate
Paycheck
4.0
Generate
Payroll
Reports
Employee
Management
Governmental
Agencies
Payroll File
Time
Card
Data
Personnel
Changes
Pay
check
Internal
Reports
Withholding
Reports

Ch. 3: Systems Development and Documentation Techniques


3-16
3.6 b. Prepare a document flowchart to document the payroll processing system at No-
Wear Products.

No-Wear Products-Payroll
Payroll
Employees in Functional
Department
Time Card
Record
Time
Completed Time
Card
Completed Time
Card
Enter Time Data
Record Time Data
Payroll File
Process Payroll,
Prepare Checks
and Reports
Paycheck
Management
Report
Federal Tax
Report
Stat Tax Report
Employee
Management
Goverrnment
Enter Payroll
Changes
Process Payroll
Changes
From Human
Resource Dept
Payroll Changes
N
N

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3.7
a. Prepare a context diagram and a level 0 DFD to document accounts payable
processing at S&S.


S&S Accounts Payable
Purchasing
Vendor Management
Receiving
Purchase Order
Accounts Payable
Report
Receiving Report
Invoice
Payment &
Remittance Advice























Ch. 3: Systems Development and Documentation Techniques


3-18
3.7 a. (continued.) Level 0 Data Flow Diagram of S&S Accounts Payable

Purchasing
Vendor
Management
Receiving
Purchase Order
Accounts Payable
Report
Receiving Report
Invoice
Payment &
Remittance Advice
2.0
Collect & Store
Purchase Orders &
Receiving Reports
1.0
Record Payable
Purchase Orders
Receiving
Reports
Vendor Invoices
3.0
Make Payment
Accounts
Payable
Paid
Invoices
Cash
Disbursements
Journal
Vendor
4.0
Prepare
Management
Reports



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3-19
3.7
b. Prepare a document flowchart to document accounts payable processing at S&S.

S&S Accounts Payable
Accounts Payable Controller Owner/Manager
From Purchasing From Receiving From Vendor
Purchase Order Receiving Report Vendor Invoice
A A
Match Purchase
Order,
Receiving
Report,
Invoice
Record
Accounts
Payable
Accounts
Payable
Ledger
Vendor Invoice
Purchase Order
Receiving Report
Invoice
A
Prepare
Monthly
Accounts
Payable
Accounts Payable
Report
A
D C
Purchase Order
Receiving Report
Invoice
Check
A
A
Purchase Order
Receiving Report
Invoice
Prepare
Vendor
Checks
Cash
Disbursements
Journal
Purchase Order
Receiving Report
Invoice
Check 1
B
Check 2
B
Purchase Order
Receiving Report
Invoice
Check 2
Check 1
Review
and Sign
Checks
Check 1
Purchase Order
Receiving Report
Invoice
Check 1
To Vendor
C
Accounts Payable
Report
Review
Accounts
Payable
Report
D
D



Ch. 3: Systems Development and Documentation Techniques


3-20
3.8
a. Develop a context diagram and a level 0 DFD of the acquisition/payment system
at Oriental Trading.


Vendor
Acquisition/
Payment
System
Inventory
System
Purchase Order
Vendor Acknowledgement
Purchase Invoice
Vendor Payment
Receiving Report
Purchase Requisition


Accounting Information Systems


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3.8 a. (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental
Trading:

1.0
Prepare
Purchase
Order &
Notification
Vendor
Inventory
System
2.0
Update
Accounts
Payable
3.0
Pay Vendor
Inventory
File
Vendor
File
Accounts
Payable
Master
File
General
Ledger
Purchase Order
Vendor
Acknowledgement
Purchase Requisition
P.O. Notification
Receiving Report
Payment Authorization
Vendor
Invoice
Check
Receiving Reports
Purchase Orders
Vendor Invoices

Ch. 3: Systems Development and Documentation Techniques


3-22
3.8
b. Prepare a document flowchart to document the acquisition/payment system at
Oriental Trading.

Oriental Trading Acquisition/Payment System
Accounting Department Accounts Payable Purchasing
From Inventory
Purchase
Requisition
Enter Purchase
Requisition
Prepare Purchase
Order
Inventory
File
Vendor
File
Purchase Order
To Vendor
From Vendor
Vendor
Acknowledgment
A
A
Purchase Order
Notification
From Receiving
Department
From Vendor
Receiving Report Invoice
D D D
Match Purchase
Order, Receiving
Report, and
Invoice. Prepare
Payment
Authorization
Payment
Authorization
Purchase Order
Receiving Report
Invoice
Enter Accounts
Payable Data for
Update
D
Update Accounts
Payable Master
File
Accounts
Payable Master
File
Payment
Authorization
Check
To Vendor
General
Ledger Master
File
Purchase Order
Notification
Enter Vendor
Acknowledgment
Prepare Purchase
Order Notification
D
D
Prepare Check,
Update Accounts
Payable and
General Ledger
D
Enter payment
Authorization
B
B



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3-23
3.9
a. Develop a context diagram and a level 0 DFD for the cash receipts system at
S&S.


Customers
Cash Receipts
System
Bank
Management
Credit and
Collections
Payment at
Sale
Remitances
on Account
Deposit
Cash
Receipts
Report
Aged Trial Balance












Ch. 3: Systems Development and Documentation Techniques


3-24
3.9 a. (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S:

Customers
1.0
Process
Payments
2.0
Update
Customer
Accounts
Bank
3.0
Prepare
Reports
Management
Credit and
Collections
Remittance
File
Accounts
Receivable
Ledger
Payments at
Sale
Remittances
on
Account
Endorsed
Checks &
Cash, Deposit
Slip
Remittance
Slips
Aged Trial
Balance
Cash
Receipts
Report

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3-25
3.9
b. Prepare a document flowchart to document the cash receipts system at S&S.

S&S Cash Receipts System
Clerk Treasurer Accounts Receivable
From Customer
Remittance Slip
Update
Accounts
Receivable
Ledger/File
Remittance Slips
D
Accounts
Receivable
Ledger/File
Generate
Weekly
Reports
Cash Receipts
Report
Aged Trial Balance
To Management
To Credit &
Collections
Cash and Checks
To Bank
Endorse
Checks and
Prepare
Deposit Slip for
Cash & Checks
Cash and Checks
Deposit Slip
Cash and Checks
Deposit Slip
A
A
Remittance Slip
B
B

Ch. 3: Systems Development and Documentation Techniques


3-26
3.10 Draw a context diagram and at least two levels of DFDs for the preceding
operations.


Customer
Mail Order
System
Customer
Coupon Order
Phone Order
Cancellation
Payment
Order Inquiry
Product Inquiry
Payment
Inquiry
Invoice
Shipping Notice
Cancellation Response
Order Inquiry
Response
Product Inquiry
Response
Payment Inquiry
Response
























Accounting Information Systems


3-27
3.10. Level 0 Data Flow Diagram for a mail order company:


Customer
Customer
1.0
Process
Order
Transaction
2.0
Process
Shipment
Customer
3.0
Process
Payment
Transaction
Customer
Order File
Product File
Customer
File
Accounts
Receivable
File
phone order
coupon order
order inquiry
order
cancellation
product inquiry
cancellation response
product inquiry
response
order inquiry
response
valid order
product
details
valid
order
invoice
shipping
notice
customer
details
product
details
billed
order
payment
inquiry
billed
order
payment
payment
inquiry
response

Ch. 3: Systems Development and Documentation Techniques


3-28
3.10. Level 1 Data Flow Diagram for a mail order company:

Order File
Product File
1.1
Process
Order
1.2
Process
order
cancellation
Customer
1.3
Process
order inquiry
1.4
Process
product
inquiry
Customer
Customer
order
valid order
cancelled
order
order
cancellation
cancellation
response
order inquiry
inquiry
response
product
inquiry
product
inquiry
response
order
details
product
details

Accounting Information Systems


3-29
3.11
a. Prepare a context diagram and at least two levels of DFDs for this operation.

Student
Course
Registration
System
Instructor
Registration request
Course enrollment
reports
Fees notice
Prerequisite notice
Course closed notice
Student acceptance
notice



Level 0 Data Flow Diagram for a course registration system:



Student
1.0
Register
student
2.0
Prepare
course
enrollment
reports
Instructor
accounts receivable file
student records file
class lists file
course records file
Registration
details
fees
notice
prerequisite
notice
course closed
notice
student
acceptance
notice
course enrollment
report

Ch. 3: Systems Development and Documentation Techniques


3-30
3.11 a. (continued) Level 1 Data Flow Diagram for a registration system:


accounts receivable file
student record file
course file
class list file
1.1
Check
fees due
1.2
Check
prerequisites
1.3
Check
class
availability
1.4
Register
student
Student
paid
registration
details
fees notice
valid
registration
details
prerequisite
notice
closed course
notice
accepted
registration
details
registration
details
student
acceptance
notice















Accounting Information Systems


3-31
3.11

b. Prepare a document flowchart to document this operation.

Registration System
Registrar
Enter Registration
Request
Check for unpaid
fees
Accounts
Receivable
Check Course
Prerequisites
Student
Transcripts
Check course
availability and
add student to
class
Class
Enrollment
Print Student
Registration Report,
Update Accounts
Receivable, Print Course
Enrollment Reports
Student
Registration
Report
Registration
Request Form
Course Enrollment
Report
Instructors
If fees are owed, registration is
cancelled and the registration report
becomes a bill for unpaid fees. If a
requested class is full, the report
indicates course closed. If the
student is accepted into the
course(s): course day, time, and
room are printed next to the course.
Fees and tuition are printed on the
report.
From Student
N
To Student

Ch. 3: Systems Development and Documentation Techniques


3-32
3.12 You recognize weaknesses in the existing system and believe a document flowchart
would be beneficial in evaluating this clients internal control in preparing for your
examination of the financial statements.
a. Complete the flowchart given in Figure 3-12, for sales and cash receipts of
Charting, Inc., by labeling the appropriate symbols and indicating information
flows. Adapted from the 1969 CPA Exam


Accounting Information Systems


3-33
3.12a (Continued)

Ch. 3: Systems Development and Documentation Techniques


3-34
3.12
b. Using the guidelines for preparing flowcharts in Focus 3-2 and the flowcharting
symbols shown in Figure 3-8, critique the flowchart shown in Figure 3-12. List
the ways the flowchart violates the guidelines or uses improper symbols.

The flowchart in Fig. 3.12 violates the General Guidelines for Preparing Flowcharts in the following
ways.

1. The text uses the Terminal symbol (the oval) to indicate an external party. Figure 3.12 uses a
large arrow to indicate items coming into the system (mail, cash, and items received from the
bank). It uses a line with an arrow that stops in a small vertical line, accompanied by To
customer (or To Bank), to indicate items exiting the system.

2. The solution has the mail clerk, the sales clerk, and the inventory control clerk in one column.
Three columns would be better.

3. Additional comments (Prepare remittance advice if needed) are not enclosed in an annotation
box.

4. Each manual processing symbol does not have an input and an output. For example, the symbols
under mail clerk and sales clerk do not have an input.

5. The file symbol (the triangle) does not need the word File in it. The symbol itself conveys that it
is a file.
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3-35
3.13 Bottom Manufacturing Corporation Charge Sales System

a. List the procedures or the internal documents that are labeled letters c to r in the
flowchart of Bottom Manufacturing Corporations charge sales system.
Organize your answer as follows (Note that the explanations of the letters a and
b in the flowchart are entered as examples):

Flowchart Symbol Letter Procedures or Internal Document
a Prepare six-part sales order.
b File by order number.

FLOWCHART
SYMBOL INTERNAL CONTORL PROCEDURE
LETTER OR INTERNAL DOCUMENT
a. Prepare six-part sales order.
b. File by order number.
c. Approve customer credit and terms.
d. Release merchandise to shipping department.
e. File by sales order number.
f. File pending receipt of merchandise.
g. Prepare bill of lading.
h. Copy of bill of lading to customer.
i. Ship merchandise to customer.
j. File by sales order number.
k. Customer purchase order and sales order.
l. File pending notice of shipment.
m. Prepare three-part sales invoice.
n. Copy of invoice to customer.
o. Post to (or enter in) sales journal.
p. Account for numerical sequence.
q. Post to customer accounts.
r. File by (payment due) date. (CPA Examination, adapted)

Ch. 3: Systems Development and Documentation Techniques


3-36
b. Using the guidelines for preparing flowcharts in Focus 3-2 and the flowcharting
symbols shown in Figure 3-8, critique the flowchart shown in Figure 3-13. List
the ways the flowchart violates the guidelines or uses improper symbols.

Fig. 3.13 violates the General Guidelines for Preparing Flowcharts in the following ways:

1. The text uses the Terminal symbol (the oval) to indicate an external party. Figure 3.13 uses the
off page connector symbol.
2. Document numbers should be placed in the top right hand corner of the document symbol.
3. Sales order 2 is not shown passing through manual symbols labeled g and i so that it can end up
in the file shown at the bottom of the shipping column. The same thing happens in the other
columns.
4. Sales order 4 is filed in the finished goods department, yet the shipping column (third set of
symbols in the column) shows sales order 4. This should be sales order 2, not 4.
5. The line showing information being posted to the accounts received ledger should come out of
symbol q and should be a dotted line. The line to the sales journal (below symbol o) should also
be a dotted line.
6. In the shipping column, when the three Bills of Lading are created, the arrow downward to
symbol i should come from copy 2 of the Bill of Lading, not copy 3. The same applies to the
sales invoice in the Billing Column (arrow from copy 1).
7. Instead of using annotation symbols to tell how documents are filed, use the letter D for date, N
for numerically, and A for alphabetically. When more than one document is being filed (symbols
j, l, and bottom of Billing Column) or the method of filing is unclear (symbol r, file sales invoice
by payment due date) an annotation symbol can be used.

Additional items to improve efficiency of flowchart
1. Symbols p and q could be combined into one symbol.


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3-37
3.14
a. Prepare and file a tax return with the tax owed to the Internal Revenue Service.

Context

Prepare
Taxes
Employer
IRS
Withholding Form
IRS 1040 Form






Level 0

1.0
Collect Tax
Documents
Employer
IRS
2.0
Prepare IRS
Form 1040
Withholding Form
Tax
Documents
IRS Payment and
Form 1040

Ch. 3: Systems Development and Documentation Techniques


3-38
3.14 (continued)

b. A customer pays an invoice with a check. Accounts receivable is updated to
reflect the payment. The check is recorded and deposited into the bank.

Context

Cash
Receipts
Customer
Bank
Payment
Deposit






Level 0
Customer
Bank
2.0
Record
Customer
Payment
Accounts
Receivable
1.0
Record Cash
Receipts
Cash
Receipts
3.0
Prepare
Deposit
Payment
D
e
p
o
s
i
t
Payment Data
Payment


Accounting Information Systems


3-39
3.14 (continued)

c. A customer places an online order to purchase merchandise. The order is
approved, filled, and sent to the customer with an invoice.

Context

Customer
Order Entry
System
Purchase Order
Invoice
Merchandise


Level 0
Customer
1.0
Receive
Order
2.0
Approve Order
Purchase Order
4.0
Prepare
Invoice
Invoice
Open Orders
3.0
Fill and Ship
Order
Approved
Orders
Shipped Orders
Sent Invoice
Copies


Ch. 3: Systems Development and Documentation Techniques


3-40
3.14 (continued)


d. An inventory request is received by the purchasing department. The purchasing
department prepares and sends a purchase order to the appropriate vendor.

Context

Inventory
Department
Purchasing
System
Vendor
Inventory Request
Purchase Order






Level 0
Inventory
Department
1.0
Record
Purchase
Request
Open Purchase
Requests
2.0
Prepare
Purchase
Order
Approved
Vendor List
Vendor
Inventory Request
Purchase Order
Inventory


Accounting Information Systems


3-41
3.14 (continued)


e. A vendor invoice is received, reviewed, and compared against the appropriate
purchase order, then paid and filed.

Context

Vendor
Cash
Disbursements
Invoice
Payment






Level 0
Vendor
1.0
Receive
Invoice
Open
Invoices
2.0
Approve
Invoice
Open
Purchase
Orders
Invoice
3.0
Prepare
Payment
Payment
Payment approval







Ch. 3: Systems Development and Documentation Techniques


3-42
3.14 (continued)

f. A bill of lading for ordered inventory is received from a vendor, recorded,
checked against the appropriate purchase order, and filed.

Context

Vendor
Receiving
System
Bill of Lading






Level 0

Vendor
1.0
Record Bill of
Lading
Bill of Lading
2.0
Compare Bill of
Lading with
Purchase Order
Open Purchase
Orders
Bill of Lading










Accounting Information Systems


3-43
3 .15 Prepare a program flowchart to help Melanie program this process.

Start
Input Weight
(W), Height (H)
Body Mass Index (BMI) = W/H^2
BMI <
18.5
Weight Status
(WS) =
Underweight
BMI > 25 WS = Overweight WS = Normal
Print W, H,
BMI, WS
End
Yes
No
No Yes

Ch. 3: Systems Development and Documentation Techniques


3-44
3.16
1. Statements are prepared and sent to customers from data contained in
the accounts receivable data store.
K
2. A customer sends a sales invoice to the accounts payable process.
D
3. A check is manually prepared from data on a vendor invoice.
G
4. The cash receipt process updates the cash receipts data store.
H
5. A sales invoice is manually prepared and sent to a customer.
I
6. A report is prepared from data stored on magnetic tape.
C
7. Billing data are entered online and used to update the sales order file and
the customer master file.
A
8. Data from a cancelled invoice are used to update the cash disbursements
ledger.
J
9. A sales order is prepared manually. Copy 1 is sent to the warehouse and
copy 2 is filed.
B
10. An accounts receivable aging report is prepared from the accounts
receivable master file and the cash receipts master file, both stored on
disk.
E
11. An error listing and batch total are compared and filed.
F


3.17 Students are to replicate the flowchart presented in the problem using documentation software
such as Visio, Microsoft Word, Microsoft Excel, etc.

3.18 Students are to replicate the data flow diagram presented in the problem using documentation
software such as Visio, Microsoft Word, Microsoft Excel, etc.



Accounting Information Systems


3-45
SUGGESTED ANSWERS TO THE CASES

3-1 You are the systems analyst for the Wee Willie Williams Widget Works (also known as Dub
5, which is a shortened version of 5 Ws). Dub 5 produces computer keyboard components.
It has been producing keyboards for more than 20 years and has recently signed an
exclusive 10-year contract to provide the keyboards for all Dell personal computers. As the
systems analyst, you have been assigned the task of developing a level 0 DFD for Dub 5s
order processing system. You have finished gathering all the information you need to
develop the first-pass DFD and now want to complete the diagram.

Level 0 DFD for Dub 5:
Customer
1.0
Credit
Review
2.0
Enter
customer
orders
3.0
Check
Inventory &
Prepare
Packing Slip
4.0
Prepare
Invoice
Customer
Credit file
Open Orders
Customer
Inventory
Order
Approved
orders
Warehouse
Packing Slip
Shipping Notice
Invoice
Accounting
Invoice Copy
Order Rejection
Invoice

Ch. 3: Systems Development and Documentation Techniques


3-46
3-2 Level 1 DFD for Dub 5:

1.1
Check Credit
1.2
Check Current
Order against
Credit Limit
1.3
Prepare Credit
Application
Customer
Credit File
Customer
Account
Approved Order
Rejected Order
Rejected Order
Lacking Credit
Approval
Over Credit Limit
Notice
Credit Application
Customer Order

Note: The Order Rejection notice shown on the context level diagram and the level 0 diagram can take
two forms: The Over Credit Limit Notice or the Credit Application. These two items are shown on the
level 1 DFD.