Cha 3 Solutions Manual 11th Ed

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.

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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

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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

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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

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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

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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

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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

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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

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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.

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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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