CHAPTER 3

SYSTEMS DEVELOPMENT AND DOCUMENTATION TECHNIQUES

SUGGESTED ANSWERS TO THE PROBLEMS

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
Employee
Operating Paychecks
Documents

Payroll
Processing Management
System Internal
Reports

Human
Resources
Department
Personnel Data
Governmental
Withholding Agencies
Reports

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Ch. 3: Systems Development and Documentation Techniques

3.6 a. (continued.)
Level 0 Data Flow Diagram for the payroll processing system at No-Wear Products.

Time
Operating Human Resources
Card
Departments Department
Data

Personnel
Changes
1.0
Process
2.0
Employee
Update
Timecards
Payroll File

Payroll File

4.0
3.0 Generate
Generate Payroll
Paycheck Reports
Withholding
Internal
Reports
Reports

Pay
check
Employee
Governmental
Management
Agencies

3-2
 Accounting Information Systems

3.6 b. Prepare a document flowchart to document the payroll processing system at No-
Wear Products.

No-Wear Products-Payroll

Employees in Functional
Payroll
Department

Time Card

Record Time Data

Record
Time
Enter Time Data
Process Payroll
Changes Enter Payroll
Changes

Completed Time Completed Time

Card Card Payroll File

From Human Payroll Changes

Resource Dept

Process Payroll,
Prepare Checks
and Reports N

Paycheck
Employee

Management
Report Management

Federal Tax
Report

Stat Tax Report

Goverrnment

3-3
 Ch. 3: Systems Development and Documentation Techniques

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

Payment & Accounts Payable

Vendor Remittance Advice Report Management

3-4
 Accounting Information Systems

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 Receiving Report
Purchase Orders &
Receiving Reports

Purchase Orders

Accounts
Payable Vendor Invoices Receiving
Reports

Cash
3.0 Disbursements
Make Payment Journal

Accounts Payable
Report 4.0
Prepare Payment &
Management Remittance Advice
Reports

Paid
Management Vendor
Invoices

3-5
 Ch. 3: Systems Development and Documentation Techniques

3.7
b. Prepare a document flowchart to document accounts payable processing at S&S.

S&S Accounts Payable

Accounts Payable Controller Owner/Manager

From Purchasing From Receiving From Vendor A B Purchase Order

Receiving Report

Purchase Order Receiving Report Vendor Invoice Purchase Order Invoice

Receiving Report Check 2
Invoice Check 1

A A Record Accounts
Review
Accounts Payable
and Sign
Payable Ledger
Checks
Prepare
Vendor
Checks Check 1
Vendor Invoice Prepare
Monthly
Accounts
Payable
Match Purchase Cash
Order, A Disbursements
Journal To Vendor
Receiving
Accounts Payable
Report,
Report
Invoice
Purchase Order

Receiving Report
Purchase Order Invoice
C D
Receiving Report Check 1

Invoice
Purchase Order
Check 1
Purchase Order
Receiving Report Check 2 C

Receiving Report Invoice

Invoice Check Accounts Payable
Report D
B

A
A
Review
D
Accounts
Payable
Report

3-6
 Accounting Information Systems

3.8
a. Develop a context diagram and a level 0 DFD of the acquisition/payment system at
Oriental Trading.

Purchase Requisition
Purchase Order

Inventory
Acquisition/
Vendor Acknowledgement System
Vendor Payment
System

Purchase Invoice Receiving Report

Vendor Payment

3-7
Ch. 3: Systems Development and Documentation Techniques

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

Inventory Vendor
File File

1.0
Prepare
Purchase
Order &
Notification
Purchase Order
Purchase Requisition

Vendor
Acknowledgement Inventory
Vendor
System
P.O. Notification
Vendor
Invoice
Receiving Report

2.0 Receiving Reports

Update
Accounts
Payable Purchase Orders

Vendor Invoices
Accounts
Payable
Payment Authorization
Master
File

Check 3.0
Pay Vendor

General
Ledger

3-8
 Accounting Information Systems

3.8
b. Prepare a document flowchart to document the acquisition/payment system at
Oriental Trading.

Oriental Trading Acquisition/Payment System

Purchasing Accounts Payable Accounting Department

B
From Inventory
From Receiving
A From Vendor
Department
Purchase D Inventory
Requisition File
Purchase Order Payment D
Receiving Report Invoice Authorization
Notification

D D D
Prepare Purchase
Order Prepare Check,
Update Accounts
Enter Purchase Payable and
Requisition Enter payment General Ledger
Authorization

Match Purchase
Order, Receiving
Payment
Purchase Order Vendor Report, and
Authorization
File Invoice. Prepare
Payment
Authorization

To Vendor
Check

From Vendor
Purchase Order

Vendor Enter Accounts To Vendor

D Receiving Report Payable Data for
Acknowledgment
Update
Invoice

Update Accounts
Enter Vendor Payable Master
Acknowledgment File
D

Purchase Order Accounts General

Prepare Purchase
Notification A Payable Master Ledger Master
Order Notification
File File

3-9
Ch. 3: Systems Development and Documentation Techniques

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 Cash

Customers Management
System Receipts
Remitances Report
on Account

Aged Trial Balance

Credit and
Collections

3-10
 Accounting Information Systems

3.9 a. (continued) Level 0 Data Flow Diagram of the Cash Receipts System at S&S:

Remittance
Customers File
Payments at
Sale
Remittances
on
Account
Remittance
Slips 2.0
1.0
Update
Process
Customer
Payments
Accounts
Endorsed
Checks &
Cash, Deposit
Slip

3.0
Accounts
Bank Prepare
Receivable
Reports
Ledger Aged Trial
Balance

Cash
Receipts
Report

Credit and
Management
Collections

3-11
Ch. 3: Systems Development and Documentation Techniques

3.9
b. Prepare a document flowchart to document the cash receipts system at S&S.

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
Accounts
To Bank Receivable
Receivable
Ledger/File
Ledger/File
Endorse
Checks and
Prepare
Deposit Slip for
Cash & Checks

Remittance Slips

Generate
Weekly
Reports

Cash and Checks

D

Deposit Slip
Cash Receipts
Aged Trial Balance
Report

To Management

To Credit &
Collections

3-12
 Accounting Information Systems

3.16
1. Statements are prepared and sent to customers from data contained in K
the accounts receivable data store.
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 A
the customer master file.
8. Data from a cancelled invoice are used to update the cash disbursements J
ledger.
9. A sales order is prepared manually. Copy 1 is sent to the warehouse and B
copy 2 is filed.
10. An accounts receivable aging report is prepared from the accounts E
receivable master file and the cash receipts master file, both stored on
disk.
11. An error listing and batch total are compared and filed. F

3-13