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
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.
3-1
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.
3-2
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.
3-3
Ch. 3: Systems Development and Documentation Techniques
SUGGESTED ANSWERS TO THE PROBLEMS
Prepare flowcharting segments for each of the following operations:
3.1
Assorted Flowcharting Segments:
a.
processing transactions stored on magnetic tape to update a master file stored on
magnetic tape
Transactions
Old
Master
File
b.
File
Update
New
Master
File
processing transactions stored on magnetic tape to update a database stored on a
magnetic disk
Transactions
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
OCR Source
Documents
Update
Data base
3-4
Data
base
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
File
f.
Report
Report
Generation
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
Numerically
Invoices
N
3-5
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
Terminal
Online
Processing
System
Data
base
Source
Data
i.
a scheduled automatic backup of an internal hard drive to an external hard
drive
Internal
Hard
Drive
j.
Scheduled
Automatic
Backup
External
Hard
Drive
using a terminal to query customer sales data maintained on a magnetic disk
Display
Query
Customer
Sales Data
Enter Query
3-6
Database
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
Time Card
Record time card data on the
payroll transaction file and
update wage data maintained
on the payroll master file
Enter Time
Card Data
Payroll
Master File
3-7
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
(electronic)
To Vendor
Access Price List, create
electronic purchase order
& print a paper backup
copy
Price
Data
Purchase Order
(paper)
A
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
3-8
Reservation
File
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
Master
File
Meter Form
Preparation
Meter Forms
Sort By
Cust #
Enter
Current
Reading
Completed
Meter Forms
Mark-Sense
Document
Reader
Customer
Meter
Data
Customer
Meter
Data
Customer
Master
File
File Update
and
Billing
Error List
& Summary
Report
Customer
Bills
Mail to
Customers
3-9
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
Remittance
Stubs
Correct
Stubs
OCR
Document
Reader
Compare
&
Separate
Checks
To
Cashier
Incorrect
Stubs
List of
Other
Receipts
Type
Correct
Stubs
Type
Correct
Stubs
Corrected
Stubs
Corrected
Stubs
Payments
Posting
Run
Report of
Past-Due
Accounts
Error List
& Summary
Report
Customer
Master
File
3-10
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
Payroll
Master
File
Work in
Process
Master
File
Payroll
Processing
System
Earnings
Statement
Payroll
Register
Paycheck
3-11
Error
Transactions
and Summary
Prepare a document flowchart to reflect how ANGIC Insurance Company processes its casualty claims.
3.4
ADJUSTER
CLAIMS DEPARTMENT
DATA PROCESSING
Notice of Loss
START
From
Claimant
1
Proof of
Loss Form
Prepare
proof of
loss, claim
recored
From
Claimant
2
3
4
1
Proof of
Loss Form
Notice of Loss
Notice of Loss
2
Claim Record
3
Claim Record
4
Prepare
Separate
Report
Assist
Claimant
with Form
2
Proof of
Loss
N
Adjuster's Report
To
Claimant
Adjuster's Report
1
1
Proof of
Loss
Proof of
Loss
2
2
Authorize
Claim
Payment
3
2
Proof of
Loss
Prepare
Check &
Disbursement
list
Disbursement
List
4
To Accounting
1
Adjuster's Report
Proof of
Loss
To
Claimant
Check
A
To
Claimant
3-12
N
3.5
a. Prepare a document flowchart that indicates the interaction and use of these
documents among all departments at Beccan Company’s 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.
3-13
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
Operating
Documents
Payroll
Processing
System
Employee
Paychecks
Internal
Reports
Management
Human
Resources
Department
Personnel Data
Withholding
Reports
3-14
Governmental
Agencies
Accounting Information Systems
3.6
a. (continued.)
Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.
Operating
Departments
Time
Card
Data
Human Resources
Department
Personnel
Changes
1.0
Process
Employee
Timecards
2.0
Update
Payroll File
Payroll File
4.0
Generate
Payroll
Reports
3.0
Generate
Paycheck
Internal
Reports
Employee
Withholding
Reports
Pay
check
Management
3-15
Governmental
Agencies
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
Department
Payroll
Time Card
Record Time Data
Record
Time
Completed Time
Card
Enter Time Data
Process Payroll
Changes
Completed Time
Card
Enter Payroll
Changes
Payroll File
From Human
Resource Dept
Payroll Changes
N
Process Payroll,
Prepare Checks
and Reports
Paycheck
N
Employee
Management
Report
Management
Federal Tax
Report
Stat Tax Report
3-16
Goverrnment
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
Vendor
Accounts Payable
Report
Payment &
Remittance Advice
3-17
Management
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
Purchase Orders &
Receiving Reports
Receiving Report
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
3-18
Vendor
Accounting Information Systems
3.7
b.
Prepare a document flowchart to document accounts payable processing at S&S.
S&S Accounts Payable
Accounts Payable
From Purchasing
From Receiving
Controller
From Vendor
A
Owner/Manager
Purchase Order
B
Receiving Report
Purchase Order
Receiving Report
Invoice
Purchase Order
Vendor Invoice
Receiving Report
Check 2
Invoice
A
A
Record
Accounts
Payable
Check 1
Accounts
Payable
Ledger
Review
and Sign
Checks
Prepare
Vendor
Checks
Vendor Invoice
Match Purchase
Order,
Receiving
Report,
Invoice
Check 1
Prepare
Monthly
Accounts
Payable
Cash
Disbursements
Journal
A
To Vendor
Accounts Payable
Report
Purchase Order
Receiving Report
C
D
Purchase Order
Invoice
Receiving Report
Check 1
Invoice
Purchase Order
Purchase Order
Check 1
Receiving Report
Receiving Report
Invoice
C
Check 2
Invoice
Accounts Payable
Report
Check
D
B
A
A
Review
Accounts
Payable
Report
3-19
D
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
Vendor
Vendor Acknowledgement
Inventory
System
Acquisition/
Payment
System
Receiving Report
Purchase Invoice
Vendor Payment
3-20
Accounting Information Systems
3.8
a. (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental
Trading:
Inventory
File
Vendor
File
1.0
Prepare
Purchase
Order &
Notification
Purchase Order
Purchase Requisition
Vendor
Vendor
Acknowledgement
Inventory
System
P.O. Notification
Vendor
Invoice
Receiving Report
Receiving Reports
2.0
Update
Accounts
Payable
Purchase Orders
Vendor Invoices
Accounts
Payable
Master
File
Check
Payment Authorization
3.0
Pay Vendor
General
Ledger
3-21
Ch. 3: Systems Development and Documentation Techniques
3.8
Prepare a document flowchart to document the acquisition/payment system at
Oriental Trading.
b.
Oriental Trading Acquisition/Payment System
Purchasing
Accounts Payable
B
From Inventory
Purchase
Requisition
Accounting Department
D
Inventory
File
Prepare Purchase
Order
A
From Receiving
Department
From Vendor
Purchase Order
Notification
Receiving Report
Invoice
D
D
D
Enter Purchase
Requisition
Payment
Authorization
Enter payment
Authorization
Vendor
File
Purchase Order
Match Purchase
Order, Receiving
Report, and
Invoice. Prepare
Payment
Authorization
D
Prepare Check,
Update Accounts
Payable and
General Ledger
Payment
Authorization
B
To Vendor
Check
From Vendor
Purchase Order
D
Vendor
Acknowledgment
Enter Accounts
Payable Data for
Update
Receiving Report
Invoice
Enter Vendor
Acknowledgment
Prepare Purchase
Order Notification
Purchase Order
Notification
To Vendor
Update Accounts
Payable Master
File
D
Accounts
Payable Master
File
A
3-22
General
Ledger Master
File
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
System
Customers
Remitances
on Account
Cash
Receipts
Report
Management
Aged Trial Balance
Credit and
Collections
3-23
Ch. 3: Systems Development and Documentation Techniques
3.9
a. (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S:
Customers
Remittance
File
Payments at
Sale
Remittances
on
Account
1.0
Process
Payments
Remittance
Slips
2.0
Update
Customer
Accounts
Endorsed
Checks &
Cash, Deposit
Slip
Bank
Accounts
Receivable
Ledger
3.0
Prepare
Reports
Aged Trial
Balance
Cash
Receipts
Report
Management
3-24
Credit and
Collections
Accounting Information Systems
3.9
Prepare a document flowchart to document the cash receipts system at S&S.
b.
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
Receivable
Ledger/File
To Bank
Accounts
Receivable
Ledger/File
Endorse
Checks and
Prepare
Deposit Slip for
Cash & Checks
Remittance Slips
Generate
Weekly
Reports
Cash and Checks
D
Deposit Slip
Cash Receipts
Report
Aged Trial Balance
A
To Management
To Credit &
Collections
3-25
Ch. 3: Systems Development and Documentation Techniques
3.10
Draw a context diagram and at least two levels of DFDs for the preceding
operations.
Invoice
Coupon Order
Phone Order
Cancellation
Payment
Shipping Notice
Cancellation Response
Mail Order
System
Customer
Customer
Order Inquiry
Response
Order Inquiry
Product Inquiry
Response
Payment Inquiry
Response
Product Inquiry
Payment
Inquiry
3-26
Accounting Information Systems
3.10.
Level 0 Data Flow Diagram for a mail order company:
phone order
coupon order
cancellation response
order inquiry
1.0
Process
Order
Transaction
Customer
product inquiry
response
Customer
order inquiry
response
order
cancellation
product inquiry
valid order
invoice
Order File
product
details
Customer
shipping
notice
valid
order
customer
details
2.0
Process
Shipment
Product File
product
details
billed
order
Customer
File
Accounts
Receivable
File
payment
inquiry
Customer
billed
order
payment
3.0
Process
Payment
Transaction
3-27
payment
inquiry
response
Ch. 3: Systems Development and Documentation Techniques
3.10.
Level 1 Data Flow Diagram for a mail order company:
Customer
order
cancellation
1.1
Process
Order
valid order
cancelled
order
order
1.2
Process
order
cancellation
cancellation
response
Order File
Customer
order
details
Product File
order inquiry
product
details
1.4
Process
product
inquiry
1.3
Process
order inquiry
product
inquiry
response
product
inquiry
inquiry
response
Customer
3-28
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
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
Registration
details
Student
fees
notice
class lists file
1.0
Register
student
course records file
prerequisite
notice
course closed
notice
student
acceptance
notice
3-29
course enrollment
report
2.0
Prepare
course
enrollment
reports
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
Check
fees due
student record file
paid
registration
details
course file
fees notice
registration
details
1.2
Check
prerequisites
prerequisite
notice
class list file
valid
registration
details
1.3
Check
class
availability
closed course
notice
Student
student
acceptance
notice
3-30
accepted
registration
details
1.4
Register
student
Accounting Information Systems
3.11
Prepare a document flowchart to document this operation.
b.
Registration System
Registrar
From Student
Registration
Request Form
N
Enter Registration
Request
Check for unpaid
fees
Accounts
Receivable
Check Course
Prerequisites
Student
Transcripts
Check course
availability and
add student to
class
Class
Enrollment
Course Enrollment
Report
Instructors
Print Student
Registration Report,
Update Accounts
Receivable, Print Course
Enrollment Reports
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.
Student
Registration
Report
To Student
3-31
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 client’s 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
3-32
Accounting Information Systems
3.12a
(Continued)
3-33
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.
2.
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.
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.
3-34
Accounting Information Systems
3.13
a.
Bottom Manufacturing Corporation Charge Sales System
List the procedures or the internal documents that are labeled letters c to r in the
flowchart of Bottom Manufacturing Corporation’s 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
LETTER
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
INTERNAL CONTORL PROCEDURE
OR INTERNAL DOCUMENT
Prepare six-part sales order.
File by order number.
Approve customer credit and terms.
Release merchandise to shipping department.
File by sales order number.
File pending receipt of merchandise.
Prepare bill of lading.
Copy of bill of lading to customer.
Ship merchandise to customer.
File by sales order number.
Customer purchase order and sales order.
File pending notice of shipment.
Prepare three-part sales invoice.
Copy of invoice to customer.
Post to (or enter in) sales journal.
Account for numerical sequence.
Post to customer accounts.
File by (payment due) date.
(CPA Examination, adapted)
3-35
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.
3-36
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
Withholding Form
1.0
Collect Tax
Documents
IRS
Tax
Documents
Employer
IRS Payment and
Form 1040
2.0
Prepare IRS
Form 1040
3-37
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
Deposit
Payment
Cash
Receipts
Customer
Bank
Level 0
Payment Data
2.0
Record
Customer
Payment
Accounts
Receivable
1.0
Record Cash
Receipts
Payment
Payment
Customer
Bank
3-38
De
3.0
Prepare
Deposit
po
si t
Cash
Receipts
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
Customer
Order Entry
System
Merchandise
Invoice
Level 0
Purchase Order
1.0
Receive
Order
Open Orders
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)
An inventory request is received by the purchasing department. The purchasing
department prepares and sends a purchase order to the appropriate vendor.
d.
Context
Inventory
Department
Inventory Request
Purchasing
System
Vendor
Purchase Order
Level 0
Inventory Request
Inventory
Department
1.0
Record
Purchase
Request
Inventory
Purchase Order
2.0
Prepare
Purchase
Order
Open Purchase
Requests
3-40
Vendor
Approved
Vendor List
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
Invoice
1.0
Receive
Invoice
Open
Invoices
Vendor
2.0
Approve
Invoice
Payment
Payment approval
3.0
Prepare
Payment
3-41
Open
Purchase
Orders
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
System
Vendor
Level 0
Bill of Lading
2.0
Compare Bill of
Lading with
Purchase Order
1.0
Record Bill of
Lading
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
BMI <
18.5
Yes
Weight Status
(WS) =
Underweight
No
WS = Normal
No
BMI > 25
Print W, H,
BMI, WS
End
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Yes
WS = Overweight
Ch. 3: Systems Development and Documentation Techniques
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.
3-44
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 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
Review
Customer
Credit file
Order Rejection
Approved
orders
2.0
Enter
customer
orders
Customer
Inventory
Open Orders
3.0
Check
Inventory &
Prepare
Packing Slip
Warehouse
Packing Slip
Shipping Notice
4.0
Prepare
Invoice
Invoice Copy
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
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.
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