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
Accounting Information Systems
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- New
actions Master
Update File
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 Data
Update File
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
Data Generate Report Report

File
3-3
3-4
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
Update
Terminal Data-
Database
base
Source Data Enter Data
e. using a terminal to query your customer sales database
D
Display
Query
Query
Terminal
Customer Customer
Sales Data Sales
Database
Enter Query
f. a scheduled automatic backup of a database to an external hard drive
Scheduled
Data- External
Automatic
base Hard
Backup
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
View Trans-
timecard data action
entered File
Terminal
Record timecard data on

the payroll transaction
Enter file and update wage
Timecard data maintained on the
timecard data
payroll master file
Payroll
Master
File
3-6
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
to
To Vendor
(electronic)
View
Price List
Access price list,
create electronic Sales
Terminal purchase order, & Data-
print paper backup base
copy
Request Price
List
Purchase Order
(paper)
i. make an airline reservation online from your home computer
Customer Airline
View
Reservation
Data Make an
airline Reser-
Update
reservation vation
Reservation file
Computer File
Reservation
request
3-7
3.2 a. Prepare a system flowchart of the process described.
Remote
View job- location job-
time ticket
time ticket
form
Terminal
Terminal
Express-mailed
weekly to
Enter job-time
headquarters
ticket data
Weekly: Update payroll, work in

Payroll process, & payroll transaction
summary databases, disburse funds,
report print reports
Scan job time

tickets
Disburse
Funds
Employee
Payments
Government
Payments
View
401K company
payroll
Payments
data
Work in
process Payroll
database Payroll
database transaction Employee
file query
3-8
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 report
transaction file
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
Prepare proof
Proof of 2
From of loss form,
Loss Form
Proof of 3 Claimant claim record
Loss 4
1
Proof of 2
Notice of Loss Notice of Loss
Loss
Proof 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
Prepare
Report 2
1 1 Check &
Authorize Proof of Disburse-
Proof of 2 Proof of 2 Disburse-
Claim Loss ment List
Loss 3 Loss
Proof of ment List
Proof of Payment
Loss Loss
4
1
Accounting
Proof of 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
Receive Prepare proof of Initiate
notice of loss form, record of
loss send to claimant claim
Data Prepare
Processing Receive Prepare
Receive notice authorized & cash
Department of loss & disburse
proof-of- disburse-
record of claim loss payment ments list
check
Adjustor
Help claimant Prepare
complete proof- adjuster
of-loss, agree on report
loss amount
Claims
Department Receive proof- Authorize
of-loss, adjustor payment to
report 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 System generates Adjust & approve Maintain & update
Control Clerk purchase purchase perpetual inventory
requisition requisition system
Purchasing
Department Finalize & approve Send PO to
system generated PO vendor
3-13
Warehouse
Receive system Receive goods, complete
Receiving
prepared receiving report: date
Clerk
receiving report and quantity
Accounts From vendor

Payable
Receive Reconcile P.O., Disburse
Get receiving
vendor receiving funds to
report & PO
invoice report, 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
Time Card Data
Employee
Operating Paychecks
Documents
Payroll
Processing Management
System Internal
Reports
Human
Resources
Department
Personnel Data
Governmental
Withholding Agencies
Reports
3-15
3.5 a. (continued.)
Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.
3-16
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
3.5 b. Prepare a document flowchart to document the payroll processing system at No-
Wear Products.
3-17
3-18
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 & Accounts Payable

Vendor Remittance Advice Report Management
3-19
3-20
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
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
3-21
3-22
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
Cash Receipts Cash

Customers Management
System Receipts
Remitances Report
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
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
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 Order
Customer Customer
System
Order Inquiry
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
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
3-28
3.8. Level 1 Data Flow Diagram for a mail order company:
3-29
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
3-30
3.9
a. Prepare a context diagram and at least two levels of DFDs for this process.
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:
3-31
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
3-33
3.9 b. Prepare a flowchart to document this process.
Student Registration system
Check for Accounts

unpaid fees Receivable
Registration
Request
Check
Course Student
Prerequisites transcripts
Check course
availability & Class
add student to Enrollment
class
Calculate fees and

tuition, update accounts
receivable, send student
registration report
If fees are owed, registration is

cancelled and the registration Send course Course
report becomes a bill for unpaid enrollment Enrollment
fees. If a requested class is full, reports Report
the report indicates “course
closed.” If the student is
accepted into the course(s), then
course day, time, and room are
printed next to the course. Fees Instructors
and tuition are printed on the
report. 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
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
3-35
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 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
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
Merchandise
Customer System
Invoice
Level 0
3-37
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
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 Inventory Request Purchasing

Vendor
Department System
Purchase Order
3-38
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
3-39
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
Invoice Receive
Invoices
Invoice
Vendor
2.0
Approve
Invoice
Payment Payment approval Open

Purchase
3.0
Orders
Prepare
Payment
3-40
3-41
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
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
3-42
3-43
3 .11 Prepare a program flowchart to help Melanie program this process.
3-44
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
3-45
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.
3-46
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:
3-47
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
3-48
3-1 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.
3-49
Case 3-1 Dub 5 Business Processing Diagram

Order
Processing Notify
Clerk From Customer Enter Sufficient No customer of
Customer not Customer Inventory insufficient
Receive approved for inventory
No Order;
Customer 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:

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

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

c. querying a database and printing the query result

Data 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

Source Data Enter Data

e. using a terminal to query your customer sales database

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

3.1 (continued) Assorted Flowcharting Segments

Record timecard data on

3.1 (continued) Assorted Flowcharting Segments

i. make an airline reservation online from your home computer

3.2 a. Prepare a system flowchart of the process described.

Weekly: Update payroll, work in

Scan job time

Employee Activities Performed

Job Sites Weekly Remote locations

Express mail Enter job-

ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING

Employee Activities Performed

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

S&S Accounts Payable

Payment & Accounts Payable

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

Vendor Purchasing Receiving

Cash Receipts Cash

Aged Trial Balance

Employee Activities Performed

Coupon Order Invoice

Product Inquiry Product Inquiry

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

phone order cancellation response

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

Level 0 Data Flow Diagram for a course registration system:

accounts receivable file

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

accounts receivable file

1.1 student record file

class list file

3.9 b. Prepare a flowchart to document this process.

Student Registration system

Check for Accounts

Calculate fees and

If fees are owed, registration is

Withholding Form Prepare

b. A customer pays an invoice with a check. Accounts receivable is updated to

c. A customer places an online order to purchase merchandise. The order is

d. An inventory request is received by the purchasing department. The purchasing

Inventory Inventory Request Purchasing

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