Post on 18-Dec-2015
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Systems Development and Documentation Techniques
UAA – ACCT 316 – Fall 2003Accounting Information
SystemsDr. Fred Barbee
Ch
ap
ter 6
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Documentation Techniques
Data Flow Diagrams
Document Flowcharts
System Flowcharts
Program Flowcharts
Used by 62.5% of IT Professionals
Used by 97.6% of IT Professionals
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Documentation Techniques
Data Flow Diagrams
Document Flowcharts
System Flowcharts
Program Flowcharts
More than 92% use both DFDs and flowcharts.
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Typical Information System
Computer-based;
Has a number of terminals connected to it via telecommunications links;
Is used by dozens of people within and outside the organization;
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Typical Information System
Has hundreds of programs that perform functions for virtually every department in the organization.
Processes thousands of transactions and hundreds of requests for management information.
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For such a system . . .
We need “pictures”“pictures” rather than a narrative description
to “ “seesee”” and analyze all the inputs and outputs.
Source Document
Compute Batch Total
Source Document
Convert to Mag.
Tape
Trans Data
Edit & Sort
Sorted Data
Update Files
BatchTotal
Master Files (Sub
Ledgers)
Source Document
Summary of data
Computer- Based Batch Processing of Transactions
To Next Slide
Accounting Department
InitiatePurchase
PreparePurchase
Req.
Reorder whenquantity reaches
specified level
Inv.Records
PurchaseRequisition
12
P/RFile
C
Match,Post and
File
Inv.Records
PurchaseRequisition
22
PO
P/RFile
N
Hold until PO isreceived
To Purchasing
1
Purchasing Department
PreparePO &
approve
PurchaseOrder
12
Sup.File
A
N
34
PurchaseRequisition
To Supplier Sup.File
A
To Acct Pay
1
To Receiving
Receiving Department
PreparePO &
approve
PurchaseOrder
3
Sup.File
A
N
To Receiving
File untilarrival ofgoods
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Documentation Techniques
. . . are tools used in analyzing, designing, and documenting system and subsystem relationships . . .
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Documentation Techniques
They are largely graphical in nature;
Are essential to both internal and external auditors; and
Are indispensable in the development of information systems.
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Auditors
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Systems Development
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Management
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Other Users
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You!
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Classification . . .
Documentation is classified according to the level of the accounting system to which it relates.
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Typical System Documentation
System narrative descriptions
Block diagrams
Document flowcharts
Data flow diagrams
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Overall System Documentation
System Flowcharts
Program Flowcharts; and
Decision Flowcharts
Narrative descriptions are the most general overview and correspondingly show the fewest details.
System flowcharts provide less of an
overview, but include the most
detail in this class of documentation.
In Terms of Level of
Detail
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Narrative Descriptions
A written step-by-step explanation of system components and interactions.
The highest and broadest form of documentation at the overall system level.
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Block Diagrams
Block diagrams provide a graphic overview of a system.
Commonly used to provide an overview of an accounting system in terms of its major components and subsystems
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Block Diagrams
They help people understand a system without getting bogged down in details.
Two types:
Horizontal Block Diagram; and
Hierarchical Block Diagram
Request for Goods and Services
Purchase Requisition Purchasing
Purchase Order
ReceivingReceiving
Report
Disb. Approval
VoucherCash Disb.
$
Purchasing Cycle
Process Document
Request forGoods andServices
PurchaseRequisition Purchasing
PurchaseOrder
ReceivingReceiving
Report
Disb.Approval
VoucherCashDisb.
$
Purchasing Cycle
InventoryMgmt.
InventoryStatus
CostAccounting
CostReport
ProductionProductionSchedule
WarehouseTime
Keeping
Production Cycle
CashReceipts
SalesOrder
SalesOrder
Processing
Shipping
AccountsReceivable
Invoices
$
Revenue Cycle
Customer
Vendors and Employees
Bank
Customer
Customer
Horizontal Block Diagram
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Hierarchical Block Diagrams
Show the analysis of a system into successive levels of component subsystems.
Connecting lines represent interlevel associations (parent-child relationships).
C red itS c reen in g
S h ip p in g
S a les o rS a les O rd erP rocess in g
C u s tom erB illin g
C ashR ece ip ts
A ccou n tsR ece ivab le
R even u eC yc le
Hierarchical Block Diagram ofThe Revenue Cycle
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Data Flow Diagrams
Bridge the gap between
Broad documentation types . . .
System NarrativesBlock DiagramsDocument Flow charts
Narrow documentation types . . .
System Flow Charts
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Data Flow Diagrams
Provide . . .
More detailed representation of an accounting system than block diagrams
Fewer technical details than system flowcharts.
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Symbols For Data Flow Diagrams
Figure 6-1 (p. 158)
Symbol Name Explanation
Data sources and destinations
The people and organizations that send data to and receive data from the system.
Data Flow Diagram Symbols
Data Flows
The flow of the data into or out of a process is represented by curved or straight lines with arrows.
Symbol Name Explanation
Transformation Process
The process that transforms data from inputs to outputs. Also known as “bubbles.”
Data Flow Diagram Symbols
Data Stores
The storage of data is represented by two horizontal lines.
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Data Flow Diagrams
The DFD should consist solely of DFD symbols;
Each symbol in the DFD, including each pointed flowline, should be labeled;
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Data Flow Diagrams
All names must be meaningful to the end-user.
All symbols must have an individual name.
Diagrams are always named at the top or bottom.
The name should identify the level and the system it represents.
Figure 6-2 Basic Data Flow Diagram Elements
Figure 6-2 Basic Data Flow Diagram Elements
Examples: Customer, Employees, Bank, etc.
AKA “Entity,” or “terminator.” Named with descriptive nouns
or noun clauses.
AKA “Entity,” or “terminator.” Named with descriptive nouns or noun
clauses.
Figure 6-2 Basic Data Flow Diagram Elements
Examples: Process Payment, Update Receivables, etc.
Named with action verb or verb clause. The name must
describe what action or transformation is occurring.
Figure 6-2 Basic Data Flow Diagram Elements
Examples: Accounts
Receivable, General
Ledger, etc.
Named with a noun clause that describes the contents of the data store. Should
not include the word “data.”
Figure 6-2 Basic Data Flow Diagram Elements
Examples: Time Cards; Employee Data, etc.
AKA “Entity,” or “terminator.” Named with descriptive nouns
or noun clauses.
Named with a noun clause that describes the data
carrier and how it is implemented.
Figure 6-3 Data Flow Diagram of Customer Payment process
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DFDs – Some Do’s and Don’ts
First – the Do’s
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DFDs – Some Do’s and Don’ts
All data flows must begin at a process, end at a process, or both.
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DFDs – Some Do’s and Don’ts
Data stores cannot communicate with entities
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DFDs – Some Do’s and Don’ts
Entities cannot communicate with other entities.
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DFDs – Some Do’s and Don’ts
Data stores cannot communicate with other data stores.
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DFDs – Some Do’s and Don’ts
Processes can communicate with other processes.
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DFDs – Some Do’s and Don’ts
All processes must have an incoming and outgoing data flow.
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DFDs – Some Do’s and Don’ts
All entities must be introduced at the context level.
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DFDs – Some Do’s and Don’ts
Only entities and data store symbols may be duplicated.
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DFDs – Some Do’s and Don’ts
Do not cross data flows.
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DFDs – Some Do’s and Don’ts
Do not use double-ended arrow to represent data flows.
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DFDs – Some Do’s and Don’ts
Do not use diverging arrow to represent data flows
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DFDs – Some Do’s and Don’ts
Data stores do not appear on the context level diagram.
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Data Flow Diagrams
Some Helpful Hints
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DFDs Some Helpful Hints
Place entities on the outer edge of the paper.
Place the processes toward the center
Place data stores around the processes.
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DFDs Some Helpful Hints
May need to move location of entities and data stores from level to level.
Duplicate entities and data stores as needed to make drawing easier.
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Data Flow Diagrams are Constructed in Levels
Figure 6-5 Context Diagram for S&S Payroll Processing
Figure 6-6 DFD for S&S Payroll Processing
Figure 6-7 DFD for Process 2.0 in S&S Payroll Processing
Let’s pause here and do some data
flow diagrams.
First P6-9 (p. 180)
Ashton Fleming has worked furiously for the past month trying to completely document the major business information flows at S&S. Upon completing his personal interviews with cash receipts clerks, Ashton asks you to develop a comprehensive DFD for the cash receipts system. Ashton’s narrative of the system follows:
Customer payments include cash received at the time of purchase and account payments received in the mail. At day’s end, the treasurer endorses all checks and prepares a deposit slip for the checks and the cash. A clerk then deposits the checks, cash, and deposit slip at the local bank each day.
When checks are received as payment for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are stored in a file drawer by date.
Every week, a cash receipts report and an aged trial balance are generated from the data in the accounts receivable ledger. The cash receipts report is sent to Scott and Susan. A copy of the aged trial balance by customer account is sent to the Credit and Collections Department.
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Required
Develop a context diagram and a DFD for the cash receipts system at S&S.
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Context Level Diagram
Shows the boundary of the system;
Shows the name of the system;
Shows net data flows to and from the system; and
Identifys all entities.
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Context Level Diagram
On the context level, the system is represented by a single process symbol with the number 0.
The name of the system is used for the process.
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OK . . . Let’s Identify . . .
Data sources and destinations (terminators);
Transformation processes;
Data stores; and
Data flows
Customer payments include cash received at the time of purchase as well as accounts payments received in the mail. At the end of the day, all checks are endorsed by the treasurer and a deposit slip is prepared for the checks and the cash. The checks, cash, and deposit slip are then deposited daily at the local bank by a clerk.
When checks are received as payment for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are stored in a file drawer by date.
Every week, a cash receipts report and an aged trial balance are generated from the data in the accounts receivable ledger. The cash receipts report is sent to Scott and Susan. A copy of the aged trial balance by customer account is sent to the Credit and Collections Department.
CustomersCustomers
BankBank
ManagementManagement
Credit and Collection
Credit and Collection
Cash Receipts System
Cash Receipts System
Payments at Sale
Remittances on Account
Deposit
Cash Receipts Report
Aged Trial Balance
Context Diagram of the Cash Receipts System at S&S
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OK . . . Let’s Identify . . .
Data sources and destinations (terminators);
Transformation processes;
Data stores; and
Data flows
Customer payments include cash received at the time of purchase as well as accounts payments received in the mail. At the end of the day, all checks are endorsed by the treasurer and a deposit slip is prepared for the checks and the cash. The checks, cash, and deposit slip are then deposited daily at the local bank by a clerk.
Customer payments include cash received at the time of purchase as well as accounts payments received in the mail. At the end of the day, all checks are endorsed by the treasurer and a deposit slip is prepared for the checks and the cash. The checks, cash, and deposit slip are then deposited daily at the local bank by a clerk.
Process Checks
When checks are received as payment for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are stored in a file drawer by date.
When checks are received as payment for accounts due, a remittance slip is included with the payment. The remittance slips are used to update the accounts receivable file at the end of the day. The remittance slips are stored in a file drawer by date.
Update Accounts Receivab
le
Every week, a cash receipts report and an aged trial balance are generated from the data in the accounts receivable ledger. The cash receipts report is sent to Scott and Susan. A copy of the aged trial balance by customer account is sent to the Credit and Collections Department.
Every week, a cash receipts report and an aged trial balance are generated from the data in the accounts receivable ledger. The cash receipts report is sent to Scott and Susan. A copy of the aged trial balance by customer account is sent to the Credit and Collections Department.
Prepare Reports
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What are the Processes?
1. Process checks (1.0)
2. Update Customer Accounts (2.0)
3. Prepare Reports (3.0)
Data Flow Diagram of the Cash Receipts System at S&S
Process Checks
(1.0)Update Accts (2.0)
Prepare Reports
(3.0)
Customers
Bank
Payments
Remittances
Endorsed Checks & Cash, Deposit Slip
Remittance Slips
Remittance Slips
Accounts Receivable Ledger
Management Credit and Collections
Cash Receipts Report
Aged Trial Balance
Updated A/R Info
Updated A/R Info
Accounts Receivable Info
Wow! That was fun!
Now, let’s see if you can do
it! Try P6-6
(p. 179)
As the internal auditor for No-Wear Products of Hibbing, MN, you have been asked by your supervisor to document the company’s current payroll processing system. Based on your documentation, No-Wear hopes to develop a plan for revising the current IS to eliminate unnecessary delays in paycheck processing.
Your best explanation of the system came from an interview with the head payroll clerk.
The payroll processing system at No-Wear Products is fairly simple. Time data are recorded in each department using time cards and clocks.
It is annoying, however, when people forget to punch out at night and we have to record their time information by hand. At the end of the period, our payroll clerks enter the time card data into a payroll file for processing. Our clerks are pretty good – though I’ve had to make my share of corrections when they mess up the data entry.
Before the payroll file is processed for the current period, human resources sends us data on personnel changes, such as increases in pay rates and new employees. Our clerks enter this information into the payroll file so it is available for processing. Usually, when mistakes get back to us, it’s because human resources is recording the wrong pay rate or an employee has left and the department forgets to remove the record.
The data are then processed and individual employee paychecks are generated. Several important reports are also generated for management – though I don’t know exactly what they do with them. In addition, the government requires regular federal and state withholding reports for tax purposes. Currently, the system generates these reports automatically, which is nice.
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Required
a. Prepare a context diagram for the current payroll processing system at No-Wear Products.
b. Develop a DFD to document the payroll processing system at no-Wear Products.
Context Diagram for the Payroll Processing System at No-Wear Products
Operating Departments
Human Resouces
Department
Employees
Governmental Agencies
ManagementPayroll
Processing Sytem
Time Card Data
Personnel Data
Employee Paychecks
Internal Reports
Withholding Reports
Data Flow Diagram for the Payroll Processing System at No-Wear Products
Payroll ChangesTime Card Data
Payroll Data
Paycheck Data
Payroll File
DepartmentsPersonnel
EmployeesManagement
Governmental Agencies
Process Employee Timecards
(1.0)
Upadate Payroll
File (2.0)
Generate Paycheck
(3.0)Generate Payroll Reports
(4.0)
Time Card Data
Personnel Changes
PaycheckWithholding ReportsInternal
Reports
Wow! That was fun!
Now, let’s see if you can do
it! Try P6-11
(p. 181)
The local community college requires that each student complete a registration request form and mail or deliver it to the registrar’s office. A clerk enters the request into the system. First, the system checks accounts receivable subsystem to ensure that no fees are owed from the previous quarter. Next, for each course, the system checks the student transcript to ensure that he or she has completed the course prerequisites. Then the system checks class position availability and adds the students SSN to the class list.
The report back to the student shows the result of registration processing: If the student owes fees, a bill is sent and the registration is rejected. If prerequisites for a course are not fulfilled, the student is notified and that course is not registered. If the class is full, the student request is annotated with “course closed.”
If a student is accepted into a class, then the day, time, and room are printed next to the course number. Student fees and total tuition are computed and printed on the form. Student fee information is interfaced to the accounts receivable subsystem. Course enrollment reports are prepared for the instructors.
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Required
Prepare a context diagram and at least two levels of logical DFDs for this operation.
Context Diagram for a Course Registration System
Student Instructor
Course Registration
System
Registration Request
Fee Notice
Prerequisite Notice
Course Closed Notice
Acceptance Notice
Course Enrollment Report
DFD For Course Registration System
Class List File
Course Records File
Student Records File
Accounts Receivable File
Student
Student
Register Student
(1.0)
Prepare Course
Enrollment Rpt (2.0)
Course Enrollment Report
Student Acceptance Norice
Course Closed Notice
Prerequisite Notice
Fees Notice
Registration Details
Level 1 DFD for a Course Registration System
Accounts Receivable File
Student Records File
Course File
Class List File
Check fees due
(1.1)
Check Prereqs.
(1.2)
Check Avail. (1.3)
Register Student
(1.4)
Student
Paid Registration Details
Registration Details
Fees Notice
Prerequisite Notice
Valid Registration Details
Course Closed Notice
Student Acceptance Notice
Accepted Registration Details