Chapter 3 Solutions

(1)

3-1

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.

(2)

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

(3)

Accounting Information Systems

3-3

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

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

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

Trans-

actions

Old Master File

New

Master

File

Update File

Trans-actions

Update File

Data

base

Data

File

(4)

(5)

3-5

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.

Terminal

e.

using a terminal to query your customer sales database

D

Terminal

f.

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

Source Data

Update

Database

Data-base

Query

Customer

Sales Data

Customer

Sales

Database

External

Hard

Drive

Scheduled

Automatic

Backup

Data-base

Enter Query

Enter Data

Display

Query

View

Data

Entered

(6)

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

Terminal

Timecard

Payroll

Trans-action

File

Record timecard data on

the payroll transaction

file and update wage

data maintained on the

payroll master file

Payroll

Master

File

Enter

timecard data

View

timecard data

entered

(7)

3-7

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

to

Terminal

i.

make an airline reservation online from your home computer

Customer

Airline

Computer

Reser-vation

File

A

Purchase Order

(electronic)

Update

Reservation file

To Vendor

Access price list,

create electronic

purchase order, &

print paper backup

copy

Sales

Data-

base

Purchase Order

(paper

)

Request Price

List

Make an

airline

reservation

Reservation

request

View

Price List

View

Reservation

Data

(8)

3.2 a.

Prepare a system flowchart of the process described.

Terminal Terminal

Weekly: Update payroll, work in

process, & payroll transaction

databases, disburse funds,

print reports

Work in

process

Payroll

Enter job-time ticket data

Remote

location

job-time ticket

Payroll

summary

report

Scan job time tickets View job-time ticket form

View

payroll

data

Express-mailed

weekly to

headquarters

Disburse

Funds

Employee Payments Government Payments 401K company Payments

(9)

3-9

(10)

Employee Activities Performed

Job Sites

Weekly Remote locations

Data

Processing

Payroll

Supervisor

Employees

Process

job-time tickets

Enter

job-time tickets

Update payroll

database, work in

process database,

payroll

transaction file

Disburse funds

to employees,

government,

401K company

Create

and send

summary

payroll

report

Review

summary

payroll

report

Express mail

paper

job-time tickets

Enter

job-time tickets

daily

Access payroll

(11)

3-11

3.3 a.

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

4 3 Proof of Loss 2 Proof of Loss Form 1

ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING

Assist claimant with form Prepare Separate Report N Adjuster’s Report 4 3 Proof of Loss 2 Proof of Loss 1 Notice of Loss Claim Record Check Disburse-ment List N Prepare Check & Disburse-ment List Proof of Loss 2 Proof of Loss 2 To Claimant Accounting Prepare proof of loss form, claim record Notice of Loss START Notice of Loss Claim Record From Claimant 4 3 Proof of Loss 2 Proof of Loss 1 Adjuster’s Report Authorize Claim Payment Adjuster’s Report Proof of Loss 1 Proof of Loss 2 Proof of Loss 1 To Claimant A From claimant To claimant

(12)

3.3 b.

Prepare a BPD to reflect how ANGIC Insurance Company processes its casualty claims.

Employee

Activities Performed

Claims

Department

From Claimant

Data

Processing

Department

Adjustor

Claims

Department

Receive

notice of

loss

Prepare proof of

loss form,

send to claimant

Initiate

record of

claim

Receive notice

of loss &

record of claim

Receive

authorized

proof-of-loss

Prepare

&

disburse

payment

check

Prepare

cash

disburse-

ments list

Help claimant

complete

proof-of-loss, agree on

loss amount

Prepare

adjuster

report

Receive

proof-of-loss, adjustor

report

Authorize

payment to

claimant

(13)

3-13

Accounting

3.4

Prepare a BPD that documents Beccan’s business processes.

Employee

Activities Performed

Retail Store

Weekly & rush orders Quarterly

Shipping

Clerk

Warehouse

Inventory

Control Clerk

Purchasing

Department

Review cash

disbursement

list

Receive

goods

Review

inventory,

place order

Count inventory

and reconcile to

corporate database

Fill orders,

authorize delivery,

ship goods

System generates

purchase

requisition

Adjust & approve

purchase

requisition

Finalize & approve

system generated PO

Send PO to

vendor

Maintain & update

perpetual inventory

(14)

Warehouse

Receiving

Clerk

Accounts

Payable

From vendor

Receive goods, complete

receiving report: date

and quantity

Receive system

prepared

receiving report

Get receiving

report & PO

Receive

vendor

invoice

Reconcile P.O.,

receiving

report, invoice

Disburse

funds to

vendors

(15)

3-15

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

Operating

Documents

Human

Resources

Department

Payroll

Processing

System

Employee

Management

Governmental

Agencies

Time Card Data

Employee

Paychecks

Internal

Reports

Withholding

Reports

Personnel Data

(16)

3.5 a. (continued.)

(17)

3-17

© 2015 Pearson Education, Inc. Operating Departments Human Resources Department 1.0 Process Employee Timecards 2.0 Update Payroll File 3.0 Generate Paycheck 4.0 Generate Payroll Reports Employee Management Governmental Agencies Payroll File Time Card Data Personnel Changes Pay check Internal Reports Withholding Reports

3.5 b.

Prepare a document flowchart to document the payroll processing system at

No-Wear Products.

(18)

(19)

3-19

3.6

a.

Prepare a context diagram and a level 0 DFD to document accounts payable

processing at S&S.

S&S Accounts Payable Purchasing Vendor Management Receiving Purchase Order Accounts Payable Report Receiving Report Invoice Payment & Remittance Advice

(20)

(21)

3-21

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

Purchasing Vendor Management Receiving Purchase Order Accounts Payable Report Receiving Report Invoice Payment & Remittance Advice 2.0

Collect & Store Purchase Orders &

Receiving Reports 1.0 Record Payable Purchase Orders Receiving Reports Vendor Invoices 3.0 Make Payment Accounts Payable Paid Invoices Cash Disbursements Journal Vendor 4.0 Prepare Management Reports

(22)

(23)

3-23

3.6 3.7

a.

Develop a context diagram and a level 0 DFD for the cash receipts system at

S&S.

Customers Cash Receipts System Bank Management Credit and Collections Payment at Sale Remitances on Account Deposit Cash Receipts Report

(24)

3.7 a. (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S: Customers 1.0 Process Payments 2.0 Update Customer Accounts Bank 3.0 Prepare Reports

Management Credit and Collections Remittance File Accounts Receivable Ledger Payments at Sale Remittances on Account Endorsed Checks & Cash, Deposit Slip Remittance Slips Aged Trial Balance Cash Receipts Report

(25)

3-25

(26)

Employee

Activities Performed

Treasurer

From customer

Clerk

Accounts

Receivable

Weekly

Management:

Scott &

Susan

Credit and

Collections

Receive cash and remittance

advices, Endorse checks, and

Prepare deposit slip

Deposit

cash in

bank

Receive

remittance advice,

Update accounts

receivable

Generate cash receipt

report & aged trial

balance using A/R ledger

Review cash

receipts report

(27)

3-27

3.8

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

operations.

Customer Mail Order

System Customer Coupon Order Phone Order Cancellation Payment Order Inquiry Product Inquiry Payment Inquiry Invoice Shipping Notice Cancellation Response Order Inquiry Response Product Inquiry Response Payment Inquiry Response

(28)

3.8. Level 0 Data Flow Diagram for a mail order company: Customer Customer 1.0 Process Order Transaction 2.0 Process Shipment Customer 3.0 Customer Order File Product File Customer File Accounts Receivable File phone order coupon order order inquiry order cancellation product inquiry cancellation response product inquiry response order inquiry response valid order product details valid order invoice shipping notice customer details product details billed order payment inquiry billed order payment

(29)

3-29

(30)

Order File Product File 1.1 Process Order 1.2 Process order cancellation Customer 1.3 Process order inquiry 1.4 Process product inquiry Customer order valid order cancelled order order cancellation cancellation response order inquiry inquiry response product inquiry product inquiry response order details product details

(31)

3-31

3.9

a.

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

Student Course Registration System Instructor Registration request Course enrollment reports Fees notice Prerequisite notice Course closed notice

Student acceptance notice

(32)

Student 1.0 Register student 2.0 Prepare course enrollment reports Instructor accounts receivable file

student records file

class lists file

course records file Registration details fees notice prerequisite notice course closed notice student acceptance notice course enrollment report

(33)

3-33

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

accounts receivable file

student record file

course file

class list file 1.1 Check fees due 1.2 Check prerequisites 1.3 Check class availability 1.4 Register student Student paid registration details fees notice valid registration details prerequisite notice closed course notice accepted registration details registration details student acceptance notice

(34)

3.9 b.

Prepare a flowchart to document this process.

Student Registration system

Registration

Request

Check for

unpaid fees

Course

Enrollment

Report

Check

Course

Prerequisites

Check course

availability &

add student to

class

Calculate fees and

tuition, update accounts

receivable, send student

registration report

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

Accounts

Receivable

Student

transcripts

Class

Enrollment

Send course

enrollment

reports

(35)

3-35

3.10

a.

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

Context

Prepare

Taxes

Employer

_IRS

Withholding Form

IRS 1040 Form

Level 0 1.0 Collect Tax Documents Employer IRS 2.0 Prepare IRS Form 1040 Withholding Form Tax Documents

IRS Payment and Form 1040

(36)

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 Cash Receipts Customer Bank Payment Deposit Level 0 Customer _Bank 2.0 Record Customer Payment Accounts Receivable 1.0 Record Cash Receipts Cash Receipts 3.0 Payment De po sit Payment Data Payment

(37)

3-37

c.

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

approved, filled, and sent to the customer with an invoice.

Context

Customer

Order Entry

System

Purchase Order

Invoice

Merchandise

Level 0

(38)

Customer 1.0 Receive Order 2.0 Approve Order Purchase Order 4.0 Prepare Invoice Invoice Open Orders 3.0 Fill and Ship

Order Approved Orders Shipped Orders Sent Invoice Copies 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

(39)

3-39

Level 0 Inventory Department 1.0 Record Purchase Request Open Purchase Requests 2.0 Prepare Purchase Order Approved Vendor List Vendor

Inventory Request Purchase Order

(40)

e.

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

purchase order, then paid and filed.

Context Vendor _Cash Disbursements Invoice Payment Level 0 Vendor 1.0 Receive Invoice Open Invoices 2.0 Approve Invoice Open Purchase Orders Invoice 3.0 Prepare Payment

(41)

3-41

(42)

f.

A bill of lading for ordered inventory is received from a vendor, recorded,

checked against the appropriate purchase order, and filed.

Context Vendor Receiving System Bill of Lading Level 0 Vendor 1.0 Record Bill of Lading Bill of Lading 2.0 Compare Bill of Lading with Purchase Order Open Purchase Orders Bill of Lading

(43)

3-43

(44)

(45)

3-45

Input Weight (W), Height (H)

Body Mass Index (BMI) = W/H^2

BMI < 18.5 Weight Status (WS) = Underweight BMI > 25 WS = Overweight WS = Normal

Print W, H,

BMI, WS

End Yes No No Yes

(46)

3.12

DFD’s

1. Statements are prepared and sent to customers from data contained in

the accounts receivable data store.

B

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

4. A check is manually prepared from data on a vendor invoice.

G

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

order data base and the customer data base.

D

8. Data from a cancelled paper invoice are used to update the cash

disbursements file.

J

9. The system prepares two copies of a sales order; one copy is sent to the

customer and the other is filed.

H

10. An accounts receivable aging report is prepared from the accounts

receivable master file and the cash receipts master file.

E

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.

(47)

3-47

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.

(48)

Customer 1.0 Credit Review 2.0 Enter customer orders 3.0 Check Inventory & Prepare Packing Slip 4.0 Prepare Invoice Customer Credit file Open Orders Customer _Inventory Order Approved orders Warehouse Packing Slip Shipping Notice Invoice Accounting Invoice Copy Order Rejection Invoice

(49)

3-49

3-1 Level 1 DFD for Dub 5:

1.1 Check Credit 1.2 Check Current Order against Credit Limit 1.3 Prepare Credit Application Customer Credit File Customer Account Approved Order Rejected Order Rejected Order Lacking Credit Approval

Over Credit Limit Notice

Credit Application Customer Order

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.

(50)

Case 3-1 Dub 5 Business Processing Diagram Employee Activities Performed

Order Processing

Clerk From Customer No

No

Credit Debt Yes

No Yes Warehouse Billing Receive Customer Order Customer not approved for credit: OR order exceeds credit limit Enter Customer Order; Update Customer File Sufficient Inventory

Prepare Packing Slip

Notify customer of insufficient inventory File Invoice Customer Approved for Credit?

Send customer credit application, notify order shipped when

credit approved

Notify customer: order shipped when payment

received

Ship goods to customer

Prepare customer invoices; Place notice in file: Yes

(51)

3-51

Update Accounts Receivable