CHAPTER 3 SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES SUGGESTED ANSWERS TO DISCUSSION QUESTIONS 3.1
Data Flows: merchandise, payment, cash and register tape Date Source: customer Processes: capture sales and payment, give cash and register tape to manager Storage: sales file (register tape), cash register
3.2
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.
3.3
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 flowchart 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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Ch. 3: Systems Development and Documentation Techniques
3.4
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 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 Prodigy or some other on-line data base.
3-2 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Accounting Information Systems
SUGGESTED ANSWERS TO THE PROBLEMS 3.1
Assorted Flowcharting Segments: a. Transactions
Old Master File
File Update
Transactions
File Update
New Master File
b. Data base
c. OCR Source Documents
Conversion of Documents to Tape by OCR
Source Data
d. OCR Source Documents
Update Data base
Data base
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Ch. 3: Systems Development and Documentation Techniques
3.1 (continued)
Assorted Flowcharting Segments
e. Data File
Report
Report Generation
f.
g. Invoices
Invoices
Sort
File
h.
Terminal
Online Processing System
Source Data
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Data base
Accounting Information Systems
3.1 (continued)
Assorted Flowcharting Segments
i.
j.
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Ch. 3: Systems Development and Documentation Techniques
3.1 (continued)
Assorted Flowcharting Segments
k.
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Accounting Information Systems
3.1 (continued)
Assorted Flowcharting Segments
l.
m.
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Ch. 3: Systems Development and Documentation Techniques
3-8 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Accounting Information Systems
3.2
Happy Valley Utility Company
a.
Billing operations
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
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Ch. 3: Systems Development and Documentation Techniques
3.2
b.
Customer payments processing 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
Report of Past-Due Accounts
Payments Posting Run
Error List & Summary Report
Customer Master File
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Accounting Information Systems
3.3
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
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Error Transactions and Summary
3.4
Document Flowchart: Insurance Claims Processing
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Accounting Information Systems
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
2
Notice of Loss 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
3-13 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
N
3.5 Adapted from the June 1980 CMA Exam (Part 5, Question 2) Note: this flowchart does not follow the conventions discussed in the chapter. When the authors use this problem they have the students critique the CMA exam solution, based upon the conventions discussed in Focus 3.2.
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Accounting Information Systems
3.6
a.
Context Diagram for the payroll processing system at No-Wear Products 3-15 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Ch. 3: Systems Development and Documentation Techniques
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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.
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Ch. 3: Systems Development and Documentation Techniques
3.6
b.
Document Flowchart for the payroll processing system at No-Wear Products
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Accounting Information Systems
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Ch. 3: Systems Development and Documentation Techniques
3.7
a.
Context Diagram of S&S Accounts Payable
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Accounting Information Systems
3.7
a. (continued.)
Level 0 Data Flow Diagram of S&S Accounts Payable
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Ch. 3: Systems Development and Documentation Techniques
3.7
b.
Document Flowchart of S&S Accounts Payable
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Accounting Information Systems
3.8 a. Company:
Context Diagram for the Acquisition/Payment System at Oriental Trading
Purchase Requisition Purchase Order
Vendor
Vendor Acknowledgement
Inventory System
Acquisition/ Payment System
Receiving Payment
Purchase Invoice
Vendor Payment
3-23 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Ch. 3: Systems Development and Documentation Techniques
3.8
a. (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental Trading:
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Accounting Information Systems
Inventory File
Vendor File
1.0 Prepare Purchase Order & Notification Purchase Order
Vendor
Purchase Requisition
Vendor Acknowledgement
Inventory System
P.O. Notification Vendor Invoice
Receiving Report 2.0 Update Accounts Payable
Accounts Payable Master File Check
Payment Authorization
3.0 Pay Vendor General Ledger
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Ch. 3: Systems Development and Documentation Techniques
3.8 b. Company:
Document Flowchart for the Acquisition/Payment System at Oriental Trading
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Accounting Information Systems
3.9
a.
Context Diagram of 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
3-27 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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
3-28 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Credit and Collections
Accounting Information Systems
3.9
b.
Document Flowchart of the Cash Receipts System at S&S:
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Ch. 3: Systems Development and Documentation Techniques
3.10
Context Diagram for a mail order company:
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
3-30 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
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 3.0 Process Payment Transaction
3-31 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
payment 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
order
valid order
cancelled 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
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Accounting Information Systems
3.11
a.
Context Diagram for a course registration system:
Registration request Course Registration System
Student
Course enrollment reports 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
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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
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accepted registration details 1.4 Register student
Accounting Information Systems
3.11
b.
Document Flowchart for a registration system:
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Ch. 3: Systems Development and Documentation Techniques
3.12
a. Adapted from the 1969 CPA Exam 3-36 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Accounting Information Systems
CHARTING INC. FLOW CHART FOR SALES AND CASH RECEIPTS SALES DEPARTMENT CLERKS
CASHIER
SUPERVISOR
MAIL
Mail Clerk
CHECKS
OPEN MAIL
CHECKS REVIEW
REMITTANCE ADVICE
PREPARE REMITTANCE ADVICE IF NEEDED RETAINED IN SALES BOOK
Sales Clerk 3
WRITE INVOICE FOR CUSTOMER ORDER
2 1 SALES INVOICE
2 1 SALES INVOICE
APPROVE AND VALIDATE SALES INVOICE FROM
RECAP SALES AND CASH
CASH CUSTOMER
TO CUSTOMER
1 VALIDATED SALES INVOICE
Inventory Control Clerk 2 SALES INVOICE
FILE N POST
INVENTORY CONTROL CARDS
3.12a (Continued) 3-37 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
REMITTANCE ADVICE
Ch. 3: Systems Development and Documentation Techniques
ACCOUNTING DEPARTMENT ACCOUNTS RECEIVABLE CLERK
SUPERVISOR
CHECKS REVIEW FOR PAST DUE ACCOUNT PAYMENTS
ARRANGE IN ALPHABETICAL ORDER
CHECKS
REMITTANCE ADVICE
FILE D
REMITTANCE ADVICE
ACCOUNTS RECEIVABLE LEDGER
POST
FILE D CASH RECEIPTS JOURNAL
POST CHECK TOTAL CASH ENDORSE CHECKS TOTAL CASH AND CHECKS AND PREPARE DEPOSIT SLIP
CHECKS 3
TO
2 BANK 1
SALES JOURNAL
POST
DEPOSIT SLIP
FILE D
DAILY SALES SUMMARY
RECONCILE
FILE D
POST
MONTHLY BANK STATEMENT 2 SALES INVOICE FILE D
BALANCE CASH WITH SALES INVOICES AND PREPARE DAILY SALES SUMMARY
2 VALIDATED DEPOSIT SLIP
FROM BANK
CASH MONTLY BANK STATEMENT
FROM BANK
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Accounting Information Systems
3.12
b.
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 all clerks 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 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.
6.
The numbers on documents do not always accompany the documents as they move between columns. For example, Sales Invoice 1 is missing the one when it moves to the Cashier column. This is corrected on the solution.
7.
Some of the solid lines in the problem are correctly changed to dotted lines in the solution. For example, under Inventory control clerk the lines from Sales Invoice to Post to the control cards are correctly changed to dotted lines.
3-39 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Ch. 3: Systems Development and Documentation Techniques
3.13 a.
Bottom Manufacturing Corporation Charge Sales System FLOWCHART SYMBOL LETTER a. b. c. d. e. f. g. h. i. j. k. l. m. n. o. p. q. r.
b.
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)
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 g 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. 3-40 © 2009 Pearson Education, Inc. Publishing as Prentice Hall
Accounting Information Systems
Additional items to improve efficiency of flowchart 1. Symbols p and q could be combined into one symbol. 3.14 a. Context
Level 0
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Ch. 3: Systems Development and Documentation Techniques
3.14 (continued) b. Context
Level 0
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Accounting Information Systems
3.14 (continued) c. Context
Level 0
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Ch. 3: Systems Development and Documentation Techniques
3.14 (continued) d. Context
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Accounting Information Systems
Level 0
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Ch. 3: Systems Development and Documentation Techniques
3.14 (continued) e. Context
Level 0
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Accounting Information Systems
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Ch. 3: Systems Development and Documentation Techniques
3.14 (continued) f. Context
Level 0
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Accounting Information Systems
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Ch. 3: Systems Development and Documentation Techniques
3 .15
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Accounting Information Systems
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Ch. 3: Systems Development and Documentation Techniques
3.16 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
K D G H I C A J B E F
3.17 Students are to replicate the flowchart presented in the problem using a 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 a documentation software such as Visio, Microsoft Word, Microsoft Excel, etc.
SUGGESTED ANSWERS TO THE CASES 3-1
Answers to this case will vary based upon the company the student selects. Make sure that the student is thorough in addressing all the requirements of the case.
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Accounting Information Systems
3.2
Level 0 DFD for Dub 5:
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Ch. 3: Systems Development and Documentation Techniques
3-2 Level 1 DFD for Dub 5:
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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