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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.

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Ch. 3: Systems Development and Documentation Techniques

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.

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Accounting Information Systems

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.

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Ch. 3: Systems Development and Documentation Techniques

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

Trans-
actions

Old New
File
Master Master
Update
File File

b. processing transactions stored on magnetic tape to update a database stored on a


magnetic disk

Trans- File Data


actions Update base

c. converting source documents to magnetic tape using a computer-based


optical character reader (OCR)

OCR Source Conversion of


Documents Source
Documents to
Data
Tape by OCR

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

OCR Source
Documents Update Data
Data base base

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Accounting Information Systems

3.1 (continued) Assorted Flowcharting Segments

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

Data Report Report


File Generation

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

Terminal

Data File

Source
Documents
Key Data

g. manually sorting and filing invoices numerically

Invoices Sort Invoices


Numerically

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Ch. 3: Systems Development and Documentation Techniques

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

Online
Terminal Data
Processing
base
System

Source
Data

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


drive

Internal Scheduled External


Hard Automatic Hard
Drive Backup Drive

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

Display

Query
Customer Database
Sales Data

Enter Query

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Accounting Information Systems

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

Payroll
Transaction
File

Terminal

Record time card data on the


Time Card payroll transaction file and
Enter Time update wage data maintained
Card Data on the payroll master file

Payroll
Master File

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Ch. 3: Systems Development and Documentation Techniques

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

Purchase Order To Vendor


(electronic)

Access Price List, create


electronic purchase order Price
& print a paper backup Data
copy

Purchase Order
(paper)

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


home computer

Request, complete, Revise reservation


and submit an data on web-based Reservation
online reservation airline reservation File
change form system

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Accounting Information Systems

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 Enter Completed


Meter Form Meter Forms
Master Current Meter Forms
Preparation
File Reading

Customer Mark-Sense
Sort By Document
Meter
Cust # Reader
Data

Customer
Meter
Data

Customer File Update


Master and
File Billing

Error List
Customer
& Summary
Bills
Report

Mail to
Customers

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Ch. 3: Systems Development and Documentation Techniques

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 Compare
Checks To
&
Remittance Cashier
Separate
Stubs

List of
Correct Incorrect
Other
Stubs Stubs
Receipts

Type Type
Correct Correct
Stubs Stubs

Corrected Corrected
Stubs Stubs

Report of
Past-Due
Accounts
OCR Payments
Document Posting
Reader Run

Error List
& Summary
Report

Customer
Master
File

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Accounting Information Systems

3.3 Prepare a system flowchart of the process described.

Payroll Processing for Dewey Construction Company:

Job Time
Tickets

Key to
Tape
Encodings

Job Time
Records
Tape

Work in
Payroll Payroll
Process
Master Processing
Master
File System
File

Earnings
Statement Error
Payroll Transactions
Register Paycheck and Summary

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3.4 Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.

ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING

Notice of Loss
START

From
Claimant

Prepare
proof of
1 From loss, claim
Proof of Claimant
2 recored
Loss Form
3
4
1 Notice of Loss
Proof of Notice of Loss
2
Loss Form
3 Claim Record
Claim Record
4

Assist Prepare
Claimant Separate
with Form Report 2
N Proof of
Loss
To Adjuster's Report
Claimant

Adjuster's Report

Prepare Disbursement
1 Check & List
1 Proof of Disbursement
Proof of 2 2 list
2 Loss Authorize
Loss Proof of
Claim
3 Loss
Payment
4

To Accounting

1 Adjuster's Report Check


Proof of
Loss

N
To
Claimant
A
To
Claimant

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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.

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Ch. 3: Systems Development and Documentation Techniques

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

Employee
Time Card Data
Employee
Operating Paychecks
Documents

Payroll
Processing Management
System Internal
Reports

Human
Resources
Department
Personnel Data
Governmental
Withholding Agencies
Reports

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Accounting Information Systems

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

Time
Operating Human Resources
Card
Departments Department
Data

Personnel
Changes
1.0
Process
2.0
Employee
Update
Timecards
Payroll File

Payroll File

4.0
3.0 Generate
Generate Payroll
Paycheck Reports
Withholding
Internal
Reports
Reports

Pay
check
Employee
Governmental
Management
Agencies

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Ch. 3: Systems Development and Documentation Techniques

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

No-Wear Products-Payroll

Employees in Functional
Payroll
Department

Time Card

Record Time Data

Record
Time
Enter Time Data
Process Payroll
Changes Enter Payroll
Changes

Completed Time Completed Time


Card Card Payroll File

From Human Payroll Changes


Resource Dept

Process Payroll,
Prepare Checks
and Reports N

Paycheck
Employee

Management
Report Management

Federal Tax
Report

Stat Tax Report


Goverrnment

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Accounting Information Systems

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

Purchasing Receiving
Purchase Order

Receiving Report

S&S Accounts Payable

Invoice

Payment & Accounts Payable


Vendor Remittance Advice Report Management

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Ch. 3: Systems Development and Documentation Techniques

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

Vendor Purchasing Receiving

Invoice
Purchase Order

1.0
Record Payable 2.0
Collect & Store Receiving Report
Purchase Orders &
Receiving Reports

Purchase Orders

Accounts
Payable Vendor Invoices Receiving
Reports

Cash
3.0 Disbursements
Make Payment Journal

Accounts Payable
Report 4.0
Prepare Payment &
Management Remittance Advice
Reports

Paid
Management Vendor
Invoices

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Accounting Information Systems

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 A B Purchase Order

Receiving Report

Purchase Order Receiving Report Vendor Invoice Purchase Order Invoice


Receiving Report Check 2
Invoice Check 1

A A Record Accounts
Review
Accounts Payable
and Sign
Payable Ledger
Checks
Prepare
Vendor
Checks Check 1
Vendor Invoice Prepare
Monthly
Accounts
Payable
Match Purchase Cash
Order, A Disbursements
Journal To Vendor
Receiving
Accounts Payable
Report,
Report
Invoice
Purchase Order

Receiving Report
Purchase Order Invoice
C D
Receiving Report Check 1

Invoice
Purchase Order
Check 1
Purchase Order
Receiving Report Check 2 C

Receiving Report Invoice


Invoice Check Accounts Payable
Report D
B

A
A
Review
D
Accounts
Payable
Report

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Ch. 3: Systems Development and Documentation Techniques

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

Purchase Requisition
Purchase Order

Inventory
Acquisition/
Vendor Acknowledgement System
Vendor Payment
System

Purchase Invoice Receiving Report

Vendor Payment

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Accounting Information Systems

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


Trading:

Inventory Vendor
File File

1.0
Prepare
Purchase
Order &
Notification
Purchase Order
Purchase Requisition

Vendor
Acknowledgement Inventory
Vendor
System
P.O. Notification
Vendor
Invoice
Receiving Report

2.0 Receiving Reports


Update
Accounts
Payable Purchase Orders

Vendor Invoices
Accounts
Payable
Payment Authorization
Master
File

Check 3.0
Pay Vendor

General
Ledger

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Ch. 3: Systems Development and Documentation Techniques

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

Oriental Trading Acquisition/Payment System

Purchasing Accounts Payable Accounting Department

B
From Inventory
From Receiving
A From Vendor
Department
Purchase D Inventory
Requisition File
Purchase Order Payment D
Receiving Report Invoice Authorization
Notification

D D D
Prepare Purchase
Order Prepare Check,
Update Accounts
Enter Purchase Payable and
Requisition Enter payment General Ledger
Authorization

Match Purchase
Order, Receiving
Payment
Purchase Order Vendor Report, and
Authorization
File Invoice. Prepare
Payment
Authorization

To Vendor
Check

From Vendor
Purchase Order

Vendor Enter Accounts To Vendor


D Receiving Report Payable Data for
Acknowledgment
Update
Invoice

Update Accounts
Enter Vendor Payable Master
Acknowledgment File
D

Purchase Order Accounts General


Prepare Purchase
Notification A Payable Master Ledger Master
Order Notification
File File

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Accounting Information Systems

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

Bank
Deposit

Payment at
Sale

Cash Receipts Cash


Customers Management
System Receipts
Remitances Report
on Account

Aged Trial Balance

Credit and
Collections

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Ch. 3: Systems Development and Documentation Techniques

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

Remittance
Customers File
Payments at
Sale
Remittances
on
Account
Remittance
Slips 2.0
1.0
Update
Process
Customer
Payments
Accounts
Endorsed
Checks &
Cash, Deposit
Slip

3.0
Accounts
Bank Prepare
Receivable
Reports
Ledger Aged Trial
Balance

Cash
Receipts
Report

Credit and
Management
Collections

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Accounting Information Systems

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

S&S Cash Receipts System

Treasurer Clerk Accounts Receivable

From Customer A B

Cash and Checks Cash and Checks Remittance Slip

Remittance Slip
B Deposit Slip

Update
Accounts
Accounts
To Bank Receivable
Receivable
Ledger/File
Ledger/File
Endorse
Checks and
Prepare
Deposit Slip for
Cash & Checks

Remittance Slips

Generate
Weekly
Reports

Cash and Checks


D

Deposit Slip
Cash Receipts
Aged Trial Balance
Report

To Management

To Credit &
Collections

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Ch. 3: Systems Development and Documentation Techniques

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

Coupon Order Invoice


Phone Order Shipping Notice
Cancellation
Payment Cancellation Response

Mail Order
Customer Customer
System
Order Inquiry
Order Inquiry Response

Product Inquiry Product Inquiry


Response
Payment Payment Inquiry
Inquiry Response

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Accounting Information Systems

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

phone order cancellation response


coupon order
product inquiry
order inquiry response Customer
1.0
Process
Customer
Order order inquiry
Transaction response
order valid order
cancellation
product inquiry
invoice
Order File
product Customer
details
valid shipping
order notice
customer
details
2.0
Product File Process
Shipment
product
details

billed
order
Customer
File

payment
Accounts inquiry
Receivable Customer
File

billed
order
payment
3.0
Process
Payment payment
Transaction inquiry
response

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Ch. 3: Systems Development and Documentation Techniques

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

Customer
order
cancellation

1.2
1.1
cancelled Process cancellation
Process valid order order order response
Order
cancellation
order

Order File

Customer

order
details
Product File

order inquiry
product
details

1.4
1.3
Process
Process
product
order inquiry
inquiry

product product
inquiry inquiry
inquiry response
response

Customer

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Accounting Information Systems

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

Registration request
Course enrollment
reports
Course
Student Registration Instructor
System

Fees notice
Prerequisite notice
Course closed notice
Student acceptance
notice

Level 0 Data Flow Diagram for a course registration system:

accounts receivable file

Instructor
student records file

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

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Ch. 3: Systems Development and Documentation Techniques

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

accounts receivable file

1.1 student record file


Check
fees due paid
registration
details
course file
fees notice
registration
details
1.2
Check
prerequisites

class list file


valid
prerequisite registration
notice details

1.3
Check
class
accepted
availability
registration
closed course details
notice
1.4
Student Register
student student
acceptance
notice

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Accounting Information Systems

3.11

b. Prepare a document flowchart to document this operation.

Registration System

Registrar

Registration N
From Student Request Form

Enter Registration
Request

Check for unpaid Accounts


fees Receivable

Check Course Student


Prerequisites Transcripts

Check course
availability and Class
add student to Enrollment
class

Print Student
Course Enrollment Registration Report,
Report Update Accounts
Receivable, Print Course If fees are owed, registration is
Enrollment Reports 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
Student course(s): course day, time, and
Instructors
Registration room are printed next to the course.
Report Fees and tuition are printed on the
report.

To Student

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Ch. 3: Systems Development and Documentation Techniques

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

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Accounting Information Systems

3.12a (Continued)

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Ch. 3: Systems Development and Documentation Techniques

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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Accounting Information Systems

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)

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Ch. 3: Systems Development and Documentation Techniques

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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Accounting Information Systems

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

Context

Withholding Form Prepare


Taxes IRS 1040 Form
Employer IRS

Level 0

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

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Ch. 3: Systems Development and Documentation Techniques

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

Payment Deposit
Cash
Receipts Bank
Customer

Level 0

2.0
Record
Customer Accounts
Payment Data Payment Receivable

1.0
Record Cash
Payment Receipts

Payment
Customer Bank

Cash
Receipts
si t
po

3.0
De

Prepare
Deposit

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Accounting Information Systems

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

Purchase Order
Order Entry
Merchandise
Customer System

Invoice

Level 0

1.0
Receive Open Orders
Purchase Order
Order

Customer

Invoice 2.0
Approve Order
Sent Invoice
Copies

4.0
Prepare
Invoice
Approved
Orders

Shipped Orders
3.0
Fill and Ship
Order

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Ch. 3: Systems Development and Documentation Techniques

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 Inventory Request Purchasing


Vendor
Department System
Purchase Order

Level 0

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

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Accounting Information Systems

3.14 (continued)

e. A vendor invoice is received, reviewed, and compared against the appropriate


purchase order, then paid and filed.

Context

Invoice
Vendor Cash
Disbursements

Payment

Level 0

1.0
Open
Invoice Receive
Invoices
Invoice

Vendor

2.0
Approve
Invoice

Payment Payment approval Open


Purchase
3.0
Orders
Prepare
Payment

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Ch. 3: Systems Development and Documentation Techniques

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

Bill of Lading

Receiving
Vendor
System

Level 0

Bill of Lading 2.0


1.0
Compare Bill of
Record Bill of
Lading with
Lading
Purchase Order
Vendor

Bill of Lading
Open Purchase
Orders

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Accounting Information Systems

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

Weight Status
BMI <
Yes (WS) =
18.5
Underweight

No

WS = Normal No BMI > 25 Yes WS = Overweight

Print W, H,
BMI, WS

End

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Ch. 3: Systems Development and Documentation Techniques

3.16
1. Statements are prepared and sent to customers from data contained in K
the accounts receivable data store.
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 A
the customer master file.
8. Data from a cancelled invoice are used to update the cash disbursements J
ledger.
9. A sales order is prepared manually. Copy 1 is sent to the warehouse and B
copy 2 is filed.
10. An accounts receivable aging report is prepared from the accounts E
receivable master file and the cash receipts master file, both stored on
disk.
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.

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Accounting Information Systems

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:

Order
Customer 1.0 Credit file
Credit
Review

Order Rejection
Approved
orders

2.0
Enter
customer
orders
Customer Inventory

3.0
Check Warehouse
Open Orders Inventory &
Prepare
Packing Slip
Packing Slip

Shipping Notice

4.0
Invoice Copy Prepare
Invoice

Accounting

Invoice Invoice

Customer

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Ch. 3: Systems Development and Documentation Techniques

3-2 Level 1 DFD for Dub 5:

Customer Order
Credit File

1.1
Check Credit Customer
Approved Order Account

Rejected Order

Customer
1.2
Check Current
Order against Over Credit Limit
Credit Limit Notice

Credit Application

Rejected Order 1.3


Lacking Credit Prepare Credit
Approval Application

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.

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