Systems Development and Documentation Techniques: 3-1 © 2015 Pearson Education, Inc

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 customer’s money. At closing, Jill gives both the cash and the
register tape to her manager.
Data Flows: merchandise, payment, cash and register tape
Date 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.
 Data flow diagrams provide a graphic picture of the logical flow of data within
an organization.
 Business process diagrams show the activities a company engages in to do business and the
diagrams can be used to evaluate internal controls strengths and weaknesses.
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.
3-1
© 2015 Pearson Education, Inc.
Ch. 3: Systems Development and Documentation Techniques
3.3 Compare the guidelines for preparing flowcharts, BPDs, and DFDs. What general
design principles and limitations are common to all 3 documentation techniques?
Similar design concepts include the following:
 All three methods require an initial understanding of the system before actual
documentation begins. This insures that the system is properly represented by the diagram.
 All three methods require the designer to identify the elements of the system and to identify
the names and relations associated with the elements.
 All three methods encourage the designer to show only the regular flows of information and
not to be concerned with unique situations.
 All three require more than one “pass” to capture the essence of the system accurately.
The product of all three methods is a model documenting the flow of information, processes,
and/or documents in an information system. All three 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.
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 symbols are used, student answers will vary. Possible examples include:
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, a computer monitor.
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
 Database: alumni information database, a student information database or an airline
reservation database stored on-line.
 Magnetic tape: archival student information
Flow (Miscellaneous)
 Communication link: a telephone linkage that connects you to an on-line database.
3-2
SUGGESTED ANSWERS TO THE PROBLEMS
3.1 Prepare flowcharting segments for each of the following operations:
a. processing transactions stored on a sequential medium such as a magnetic tape

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

Update File
A sequential medium has to be read and processed from beginning to end and you cannot store
the updated information on the input tape. Instead, you have to create a new master file on a new
tape, as shown above
b. processing transactions stored on magnetic tape to update a database
Trans- actions
Update File Data base
Virtually all databases are stored on a random access device so a record that is to be updated can
be found, updated, and written back to the same hard drive or other random access device.
c. querying a database and printing the query result
Generate Report Report

Data File
3-3
Accounting Information Systems
3.1 (continued) Assorted Flowcharting Segments
d. using a terminal to enter paper-based source document data and send it to a

remote location where a corporate computer updates the company database.
View Data Entered
Terminal
Update Database Data- base
Source Data
Enter Data
e. using a terminal to query your customer sales database
D
Display Query
Query Customer Sales Data

Terminal Customer Sales Database
Enter Query
f. a scheduled automatic backup of a database to an external hard drive
Scheduled Automatic Backup

Data- base External Hard Drive
3-5
g. use a terminal to enter employee hours recorded on time cards to update both
the payroll transaction file and the wage data in the payroll master file
Payroll Trans- action File

View timecard data entered
Terminal
Record timecard data on the payroll transaction file and update wage data maintain
Timecard Enter timecard data
Payroll Master File

h. use a terminal to access a price list in the sales database 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 (electronic)

To Vtoendor
View Price List

Access price list, create electronic purchase order, & print paper backup copy
Sales Data- base
Terminal
Request Price List
Purchase Order (paper)
i. make an airline reservation online from your home computer
Customer Airline
View Reservation Data
Make an airline reservation

Update Reservation fileReser- vation File
Computer
Reservation request
3-7
3.2 a. Prepare a system flowchart of the process described.
Remote
View job- time ticket form location job-
time ticket
Terminal Terminal
Express-mailed
weekly to
headquarters
Enter job-time ticket data
Weekly: Update payroll, work in process, & payroll transaction databases, disburse funds,
Payroll print reports
summary
report
Scan job time tickets
Disburse Funds
Employee Payments
Government Payments
401K company Payments

View payroll data
Work in process database

Payroll database
Payroll transaction file
Employee query
3-9
3.2 b. Prepare a business process diagram for the process described.
Employee Activities Performed
Job Sites Weekly Remote locations
Express mail Enter job-

Enter job-
paper job- time tickets
time tickets
time tickets daily
Data
Processing
Update payroll Create
Disburse funds
database, work in and send
Process job- to employees,
process database, summary
time tickets government,
payroll payroll
401K company
transaction file report
Payroll
Supervisor
Review
summary
payroll
report
Employees
Access payroll
data using
Internet
3-10
3.3 a. Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.
ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING
Notice of Loss
From START
claimant
1
2 Prepare proof
Proof of of loss form,
From
LoPsrsooFf 3
claim record
Claimant
oorfm
Loss 4
1
Proof of 2
Notice of Loss Notice of Loss
LoPsrsoof of 3
Loss 4 Claim Record Claim Record
2
Assist Prepare
claimant Separate Proof of
with form Report N Loss
Adjuster’s
Report
To Claimant
Adjuster’s
Report 2
1 1 Prepare Disburse-
2 2 Authorize Proof of Check &
Proof of Proof of ment List
LoPssroof of
Claim Loss Disburse-
LoPsrsoof of 3 Payment
Loss Loss ment List
4
1
Proof of Accounting
Adjuster’s Check
Loss
Report
To
N claimant To
Claimant
A 3-11
3.3 b. Prepare a BPD to reflect how ANGIC Insurance Company processes its casualty claims.

Claims Department
From Claimant
ReceivePrepare proof of notice ofloss form,
Initiate record of claim
losssend to claimant
Data Processing Department Prepare & disburse payment check

Receive authorized proof-of- loss Prepare cash disbursements list
Receive notice of loss & record of claim
Adjustor
Prepare
Help claimant complete proof- of-loss, agree on adjuster report
loss amount
Claims Department
Receive proof- of-loss, adjustor
Authorize
report
payment to claimant
3-12
Accounting
Review cash disbursement list
3.4 Prepare a BPD that documents Beccan’s business processes.

Retail Store Weekly & rush orders Quarterly
Review Count inventory
inventory, Receive
and reconcile to
place order goods
corporate database
Shipping Clerk
Fill orders, authorize delivery, ship goods
Warehouse Inventory Control Clerk System generates Adjust & approve Maintain & update
purchase purchase perpetual inventory
requisition requisition system
Purchasing Department
Finalize & approve Send PO to
system generated PO vendor
3-13
Warehouse
Receive goods, complete
Receiving Receive system receiving report: date
prepared
Clerk and quantity
receiving report
Accounts From vendor

Payable Reconcile Disburs
Receiv
Get receiving
e P.O., receiving e funds
report & PO
vendor report, invoice to
invoice vendors
3-14
3.5
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
Operating Documents Time Card Data Employee Paychecks
Payroll Processing System Management

Internal Reports
Human Resources Department
Governmental Agencies
Personnel Data
Withholding
Reports
3-15
3.5 a. (continued.)
Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.
3-16
Time Card Data
Operating Departments Human Resources Department
Personnel Changes
1.0
Process Employee Timecards
2.0
Update Payroll File
Payroll File
4.0
3.0 Generate
Generate Payroll
Paycheck Reports
Withholding
Internal Reports
Reports
Pay
check
Employee
Governmental
Management
Agencies
3.5 b. Prepare a document flowchart to document the payroll processing system at No-
Wear Products.
3.6
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 & Remittance Advice Accounts Payable Report

Vendor Management
3.6 a. (continued.) Level 0 Data Flow Diagram of S&S Accounts Payable
Vendor Purchasing Receiving
Invoice
Purchase Order
1.0
Record Payable 2.0
Receiving
Collect & Store Purchase Orders & Receiving ReportsReport
Purchase Orders
Accounts Payable
Vendor Invoices Receiving Reports
Cash Disbursements Journal

3.0
Make Payment
Accounts Payable Report

4.0
Prepare Management Reports Payment & Remittance Advice
Paid
Invoices
Management Vendor
3.6
3.7
a. Develop a context diagram and a level 0 DFD for the cash receipts system
at S&S.
Bank
Deposit
Payment at Sale
Customers Cash Receipts Report Management

Cash Receipts System
Remitances on Account
Aged Trial Balance

Credit and Collections
3-23
3.7 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
1.0 Slips 2.0
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
3-24
3.7 b. Prepare a document flowchart to document the cash receipts system at S&S.
3-25
3.7 c. Prepare a business process diagram for the cash receipts system at S&S

Treasurer From customer
Receive cash and remittance
advices, Endorse checks, and
Prepare deposit slip
Clerk
Deposit
cash in
bank
Accounts Weekly
Receivable Receive
remittance advice, Generate cash receipt
Update accounts report & aged trial
receivable balance using A/R ledger
Management:
Scott &
Susan Review cash
receipts report
Credit and
Collections
Review aged
trail balance
3-26
3.8 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
Customer Customer
Order
Order Inquiry System Order Inquiry
Response
Product Inquiry Product Inquiry
Response
Payment
Payment Inquiry
Inquiry
Response
3-27
3.8. 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
shipping
valid notice
customer order
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
3-28
3.8. Level 1 Data Flow Diagram for a mail order company:
Customer
order
cancellation
1.2
1.1
cancelled Process
Process cancellation
valid order order order
Order response
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
3.9
a. Prepare a context diagram and at least two levels of DFDs for this process.
Registration request
Course enrollment reports
Course Registration System

Student Instructor
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
3-32
3.9 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
3.9 b. Prepare a flowchart to document this process.
Student Registration system
Check for unpaid fees Accounts Receivable
Registration Request
Check Course Prerequisites

Student transcripts
Check course availability & add student to class

Class Enrollment
Calculate fees and tuition, update accounts receivable, send student registration report
the registration report becomes a bill for unpaid fees.

SendIf acourse
requested class is reports
enrollment full, the report indicates “course
ourse(s), then course day, time, and room are printed next to the course. Fees and tuitionCourse Enrollment
are printed on the report.
Report
Instructors
3-34
3.10
a. Prepare and file a tax return with the tax owed to the Internal Revenue Service.
Context
Withholding Form Prepare Taxes

IRS 1040 Form
IRS
Employer
Level 0
1.0 IRS
Collect Tax
Documents
Withholding Form
IRS Payment and Form 1040
Tax Documents
Employer 2.0
Prepare IRS Form 1040
3.10 (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
Customer Bank
Level 0
2.0
Record
Customer Accounts
Payment Data Payment Receivable
1.0
Record Cash
Payment Receipts
Payment
Customer Bank
Cash
Receipts
3.0
Prepare
Deposit
3-36
3.10 (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 System
Merchandise
Customer
Level 0
1.0
Receive Order Open Orders
Purchase Order
Customer
Invoice 2.0
Sent Invoice Copies Approve Order
4.0
Prepare Invoice
Approved Orders
Shipped Orders
3.0
Fill and Ship Order
3.10 (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 DepartmentInventory Request Purchasing System Vendor
Purchase Order
Level 0
1.0 Inventory
Record Purchase Request
Inventory Request Purchase Order

2.0
Prepare Purchase Order
Inventory Department Vendor
Open Purchase Requests

Approved Vendor List
3.10 (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 Invoices
Invoice Receive Invoice
Vendor
2.0
Approve Invoice
Payment Payment approval Open Purchase Orders

3.0
Prepare Payment
3.10 (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
Vendor Receiving System
Level 0
Bill of Lading 2.0

1.0
Compare Bill of Lading with Purchase Order
Record Bill of Lading
Vendor
Bill of Lading
Open Purchase Orders
3 .11 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) =

Yes Underweight
No
WS = Normal BMI > 25 WS = Overweight

No Yes
Print W, H, BMI, WS
End
3.12
DFD’s
1. Statements are prepared and sent to customers from data contained in B
the accounts receivable data store.
2. A vendor sends a sales invoice to the accounts payable process. C
3. The cash receipt process updates the cash receipts data store. A
FLOWCHARTS G
4. A check is manually prepared from data on a vendor invoice.
5. The system prepares a check that is mailed to the customer. I
6. A report is prepared from data stored on magnetic tape. F
7. Billing data are entered into a system and used to update both the sales D
order data base and the customer data base.
8. Data from a cancelled paper invoice are used to update the cash J
disbursements file.
9. The system prepares two copies of a sales order; one copy is sent to the H
customer and the other is filed.
10. An accounts receivable aging report is prepared from the accounts E
receivable master file and the cash receipts master file.
3.13 Students are to replicate the flowchart presented in the problem using documentation software
such as Visio, Microsoft Word, Microsoft Excel, etc.
3.14 Students are to replicate the data flow diagram presented in the problem using documentation
software such as Visio, Microsoft Word, Microsoft Excel, etc.
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 5’s
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
1.0 Credit file
Customer Credit Review
Order Rejection
Approved orders
2.0
Enter customer orders
Customer Inventory
3.0
Check Inventory & Prepare Packing Slip
Open Orders Warehouse
Packing Slip
4.0
Invoice Copy Prepare Invoice
Accounting
Invoice Invoice
Customer
3-1 Level 1 DFD for Dub 5:
Customer Order
Credit File
1.1
Check Credit Customer Account
Approved Order
Rejected Order
Customer
1.2
Check Current Order against Credit Limit
Over Credit Limit Notice
Credit Application
Rejected Order Lacking Credit Approval 1.3

Prepare Credit 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.
Case 3-1 Dub 5 Business Processing Diagram

Order
Processing Notify
Clerk From Customer Enter Sufficient No customer of
Customer not insufficient
Receive Customer Inventory
approved for inventory
Customer No Order;
credit: OR Update Yes
Order order exceeds
Customer
credit limit File Invoice
File
Prepare Packing Slip
Credit Debt Yes Send customer credit

No
application, notify
Customer order shipped when
Approved credit approved
for Credit? Yes
Notify customer: order
shipped when payment
received
Warehouse
Ship goods to
customer
Billing
Prepare customer invoices; Place notice in file:
send copies to customer, order customer invoice
processing, accounting sent
3-50
Accounting
Update Accounts Receivable
3-51

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CHAPTER 3

SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

Data Flows: merchandise, payment, cash and register tape

Date Source: customer

Storage: sales file (register tape), cash register

Similar design concepts include the following:

3.1 Prepare flowcharting segments for each of the following operations:

a. processing transactions stored on a sequential medium such as a magnetic tape

Old Master File

Trans- actions New Master File

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

c. querying a database and printing the query result

Generate Report Report

3.1 (continued) Assorted Flowcharting Segments

d. using a terminal to enter paper-based source document data and send it to a

View Data Entered

e. using a terminal to query your customer sales database

Query Customer Sales Data

f. a scheduled automatic backup of a database to an external hard drive

Scheduled Automatic Backup

Payroll Trans- action File

Timecard Enter timecard data

Payroll Master File

3.1 (continued) Assorted Flowcharting Segments

Purchase Order (electronic)

View Price List

Request Price List

Purchase Order (paper)

i. make an airline reservation online from your home computer

View Reservation Data

Make an airline reservation

Scan job time tickets

401K company Payments

Work in process database

Employee Activities Performed

Job Sites Weekly Remote locations

Express mail Enter job-

ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING

Employee Activities Performed

Data Processing Department Prepare & disburse payment check

3.4 Prepare a BPD that documents Beccan’s business processes.

Employee Activities Performed

Accounts From vendor

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

Operating Documents Time Card Data Employee Paychecks

Payroll Processing System Management

Human Resources Department

S&S Accounts Payable

Payment & Remittance Advice Accounts Payable Report

Vendor Purchasing Receiving

Cash Disbursements Journal

Accounts Payable Report

Customers Cash Receipts Report Management

Aged Trial Balance

Employee Activities Performed

Coupon Order Invoice

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

Course Registration System

Fees notice Prerequisite notice

Level 0 Data Flow Diagram for a course registration system:

accounts receivable file

accounts receivable file