ch03_11e

3-1 2009 Pearson Education, Inc. Publishing as Prentice Hall

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.

Formatted: Font: 12 pt

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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.


Accounting Information Systems


SUGGESTED ANSWERS TO THE PROBLEMS

3.1 Assorted Flowcharting Segments:

a.

Old

Master

File

New

Master

File

File

Update

Trans-

actions

b.

Trans-

actions

File

Update

Data

base

c.

OCR Source

DocumentsConversion of

Documents to

Tape by OCR

Source

Data

d.

Data

base

OCR Source

Documents Update

Data base












3.1 (continued) Assorted Flowcharting Segments

e.

Data

File

ReportReport

Generation

f.

Source

Documents Data FileKey Data

Store data on disk

g.

InvoicesSort

Invoices

File

h.










Source

Data

TerminalOnline

Processing

System

Data

base


i.

Scheduled

Automatic

Backup

External

Hard

Drive

Internal

Hard

Drive

j.

Enter Query

Display

Query

Customer

Sales Data

Database











k.




Enter Time

Card Data

Time Card

Record time card data on the

payroll transaction file and

match to wage data

maintained on the payroll

master file

Payroll

Transaction

File

Payroll

Master File


l.






Access Price List, create

electronic purchase order

& print a paper backup

copy

Price

Data

Purchase Order

(paper)

A

Purchase Order

(electronic)To Vendor

m.

Update online

airline reservation

from home

computer

Revise reservation

data on web-based

airline reservation

system

Reservation

File







3.2 Happy Valley Utility Company

a. Billing operations

Customer

Master

File

Meter Form

Preparation

Meter FormsEnter

Current

Reading

Completed

Meter Forms

Mark-Sense

Document

Reader

Customer

Meter

Data

Mail to

Customers

Sort By

Cust #

Customer

Meter

Data

File Update

and

Billing

Customer

Master

File

Error List

& Summary

Report

Customer

Bills






3.2 b. Customer payments processing

Checks

Remittance

Stubs

Compare

&

Separate

Checks To

Cashier

Correct

Stubs

Incorrect

Stubs

List of

Other

Receipts

Type

Correct

Stubs

Type

Correct

Stubs

Corrected

Stubs

Corrected

Stubs

Customer

Master

File

Error List

& Summary

Report

Report of

Past-Due

AccountsOCR

Document

Reader

Payments

Posting

Run






3.3 Payroll Processing for Dewey Construction Company:

Paycheck

Job Time

Tickets

Key to

Tape

Encodings

Job Time

Records

Tape

Payroll

Processing

System

Payroll

Master

File

Work in

Process

Master

File

Payroll

Register

Earnings

Statement Error

Transactions

and Summary




3.4 Document Flowchart: Insurance Claims Processing

From

Claimant

4

3

2

1

Proof of

Loss Form

Assist

Claimant

with Form

Prepare

Separate

Report

Adjuster's Report

4

3

2

1

Proof of

Loss

To

Claimant

N

START

From

Claimant

Notice of Loss

Prepare

proof of

loss, claim

recored

Notice of Loss

Claim Record4

3

2

1

Proof of

Loss Form

To

Claimant

Adjuster's Report

2

1

Proof of

Loss Authorize

Claim

Payment

Adjuster's Report1

Proof of

Loss

A

Notice of Loss

Claim Record

N

2

Proof of

Loss

Prepare

Check &

Disbursement

list2

Proof of

Loss

Disbursement

List

Check

To

Claimant

ADJUSTER CLAIMS DEPARTMENT DATA PROCESSING

To Accounting





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.




3.6 a. 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 DataEmployee

Paychecks

Internal

Reports

Withholding

Reports

Personnel Data





3.6 a. (continued.)

Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.

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

ManagementGovernmental

Agencies

Payroll File

Time

Card

Data

Personnel

Changes

Pay

check

Internal

Reports

Withholding

Reports






3.6 b. Document Flowchart for the payroll processing system at No-Wear Products

No-Wear Products-Payroll

PayrollEmployees in Functional

Department

Time Card

Record

Time

Completed Time

Card

Completed Time

Card

Enter Time Data

Record Time Data

Payroll File

Process Payroll,

Prepare Checks

and Reports

Paycheck

Management

Report

Federal Tax

Report

Stat Tax Report

Employee

Management

Goverrnment

Enter Payroll

Changes

Process Payroll

Changes

From Human

Resource Dept

Payroll Changes

N

N






3.7 a. Context Diagram of S&S Accounts Payable

S&S Accounts Payable

Purchasing

Vendor Management

Receiving

Purchase Order

Accounts Payable

Report

Receiving Report

Invoice

Payment &

Remittance Advice






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

PurchasingVendor

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






3.7 b. Document Flowchart of S&S Accounts Payable

S&S Accounts Payable

Accounts Payable Controller Owner/Manager

From Purchasing From Receiving From Vendor

Purchase Order Receiving Report Vendor Invoice

A A

Match Purchase

Order,

Receiving

Report,

Invoice

Record

Accounts

Payable

Accounts

Payable

Ledger

Vendor Invoice

Purchase Order

Receiving Report

Invoice

A

Prepare

Monthly

Accounts

Payable

Accounts Payable

Report

A

DC

Purchase Order

Receiving Report

Invoice

Check

A

A

Purchase Order

Receiving Report

Invoice

Prepare

Vendor

Checks

Cash

Disburseme

nts Journal

Purchase Order

Receiving Report

Invoice

Check 1

B

Check 2

BPurchase Order

Receiving Report

Invoice

Check 2

Check 1

Review

and Sign

Checks

Check 1

Purchase Order

Receiving Report

Invoice

Check 1

To Vendor

C

Accounts Payable

Report

Review

Accounts

Payable

Report

D

D






3.8 a. Context Diagram for the Acquisition/Payment System at Oriental Trading

Company:

Vendor

Acquisition/

Payment

System

Inventory

System

Purchase Order

Vendor Acknowledgement

Purchase Invoice

Vendor Payment

Receiving Payment

Purchase Requisition






3.8 a. (continued) Level 0 Data Flow Diagram: Acquisition/Payment System at Oriental Trading:




1.0

Prepare

Purchase

Order &

Notification

VendorInventory

System

2.0

Update

Accounts

Payable

3.0

Pay Vendor

Inventory

File

Vendor

File

Accounts

Payable

Master

File

General

Ledger

Purchase Order

Vendor

Acknowledgement

Purchase Requisition

P.O. Notification

Receiving Report

Payment Authorization

Vendor

Invoice

Check






3.8 b. Document Flowchart for the Acquisition/Payment System at Oriental Trading

Company:

Oriental Trading Acquisition/Payment System

Accounting DepartmentAccounts PayablePurchasing

From Inventory

Purchase

Requisition

Enter Purchase

Requisition

Prepare Purchase

Order

Inventory

File

Vendor

FilePurchase Order

To Vendor

From Vendor

Vendor

Acknowledgment

A

A

Purchase Order

Notification

From Receiving

DepartmentFrom Vendor

Receiving Report Invoice

D D D

Match Purchase

Order, Receiving

Report, and

Invoice. Prepare

Payment

Authorization

Payment

Authorization

Purchase Order

Receiving Report

Invoice

Enter Accounts

Payable Data for

Update

D

Update Accounts

Payable Master

File

Accounts

Payable Master

File

Payment

Authorization

Check

To Vendor

General

Ledger Master

File

Purchase Order

Notification

Enter Vendor

Acknowledgment

Prepare Purchase

Order Notification

D

D

Prepare Check,

Update Accounts

Payable and

General Ledger

D

Enter payment

Authorization

B

B






3.9 a. Context Diagram of the Cash Receipts System at S&S:

CustomersCash Receipts

System

Bank

Management

Credit and

Collections

Payment at

Sale

Remitances

on Account

Deposit

Cash

Receipts

Report

Aged Trial Balance






3.9 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

ManagementCredit 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






3.9 b. Document Flowchart of the Cash Receipts System at S&S:

S&S Cash Receipts System

ClerkTreasurer Accounts Receivable

From Customer

Remittance Slip

Update

Accounts

Receivable

Ledger/File

Remittance Slips

D

Accounts

Receivable

Ledger/File

Generate

Weekly

Reports

Cash Receipts

ReportAged Trial Balance

To Management

To Credit &

Collections

Cash and Checks

To Bank

Endorse

Checks and

Prepare

Deposit Slip for

Cash & Checks

Cash and Checks

Deposit Slip

Cash and Checks

Deposit Slip

A

A

Remittance SlipB

B






3.10 Context Diagram for a mail order company:

CustomerMail Order

SystemCustomer

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






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

Customer

Customer1.0

Process

Order

Transaction

2.0

Process

Shipment

Customer

3.0

Process

Payment

Transaction

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

orderpayment

payment

inquiry

response






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

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

Customer

order

valid ordercancelled

order

order

cancellation

cancellation

response

order inquiry

inquiry

response

product

inquiry

product

inquiry

response

order

details

product

details






3.11 a. Context Diagram for a course registration system:

Student

Course

Registration

System

Instructor

Registration request

Course enrollment

reports

Fees notice

Prerequisite notice

Course closed notice

Student acceptance

notice

Level 0 Data Flow Diagram for a course registration system:

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

noticecourse closed

notice

student

acceptance

notice

course enrollment

report








3.11 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






3.11 b. Document Flowchart for a registration system:




Registration System

Registrar

Enter Registration

Request

Check for unpaid

fees

Accounts

Receivable

Check Course

Prerequisites

Student

Transcripts

Check course

availability and

add student to

class

Class

Enrollment

Print Student

Registration Report,

Update Accounts

Receivable, Print Course

Enrollment Reports

Student

Registration

Report

Registration

Request Form

Course Enrollment

Report

Instructors

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.

From Student

N

To Student

3.12 a. Adapted from the 1969 CPA Exam






3.12a (Continued)






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.




3.13 Bottom Manufacturing Corporation Charge Sales System

a.

FLOWCHART

SYMBOL INTERNAL CONTORL PROCEDURE

LETTER OR INTERNAL DOCUMENT

a. Prepare six-part sales order. b. File by order number. c. Approve customer credit and terms. d. Release merchandise to shipping department. e. File by sales order number. f. File pending receipt of merchandise. g. Prepare bill of lading. h. Copy of bill of lading to customer. i. Ship merchandise to customer. j. File by sales order number. k. Customer purchase order and sales order. l. File pending notice of shipment. m. Prepare three-part sales invoice. n. Copy of invoice to customer. o. Post to (or enter in) sales journal. p. Account for numerical sequence. q. Post to customer accounts. r. File by (payment due) date. (CPA Examination, adapted)

b. 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.




Additional items to improve efficiency of flowchart

1. Symbols p and q could be combined into one symbol.

3.14

a.

Context

Prepare

TaxesEmployer IRS

Withholding FormIRS 1040 Form

Level 0

1.0

Collect Tax

Documents

Employer

IRS

2.0

Prepare IRS

Form 1040

Withholding Form

Tax

Documents

IRS Form 1040








3.14 (continued)

b.

Context

Cash

ReceiptsCustomer

Bank

PaymentDeposit

Level 0

Customer Bank

2.0

Record

Customer

Payment

Accounts

Receivable

1.0

Record Cash

Receipts

Cash

Receipts

3.0

Prepare

Deposit

Payment

Deposi

t

Payment Data

Payment








3.14 (continued)

c.

Context

CustomerOrder Entry

System

Purchase Order

Invoice

Level 0






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

3.14 (continued)

d.

Context

Inventory

Department

Purchasing

SystemVendor

Inventory Request

Purchase Order








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






3.14 (continued)

e.

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

Payment








3.14 (continued)

f.

Context

VendorReceiving

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








3 .15




Start

Input Weight

(W), Height (H)

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

BMI <

18.5

Weight Status

(WS) =

Underweight

BMI > 25 WS = OverweightWS = Normal

Print W, H,

BMI, WS

End

Yes

No

No Yes






3.16

1. K 2. D 3. G 4. H 5. I 6. C 7. A 8. J 9. B 10. E 11. 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.

Formatted: Bullets and Numbering




3-2Level 0 DFD for Dub 5:

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




3-2 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

AccountApproved Order

Rejected Order

Rejected Order

Lacking Credit

Approval

Over Credit Limit

Notice

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.
