intro to Documentation

Inventory Status AccountingCost Cost Report Production Production Schedule Warehouse Time Keeping Production Cycle Cash Receipts Sales Order Sales Order Processing Shipping Accounts Rece

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Used by 97.6% of IT Professionals

flowcharts.

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.

For such a system

rather than a narrative description

to “see”” 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

Batch Total

Master Files (Sub Ledgers)

Source Document

Summary

of data

Computer-Based Batch Processing of Transactions

To Next Slide

Accounting Department

Initiate Purchase

Prepare Purchase Req.

1 2

P/R File

C

Match, Post and File

Inv.

Records

Purchase Requisition

2 2 PO

P/R File

1 2

Purchase Requisition

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

Typical System Documentation

System narrative descriptions

Block diagrams

Document flowcharts

Data flow diagrams

In Terms of

Level of Detail

components and interactions.

The highest and broadest form

of documentation at the overall system level

Commonly used to provide an

overview of an accounting system

in terms of its major components and subsystems

Two types:

Horizontal Block Diagram; and Hierarchical Block Diagram

Request for

Goods and

Services

Purchase Requisition Purchasing

Purchase Order

Receiving

Receiving Report

Disb Approval

Voucher Cash Disb.

$

Purchasing Cycle

Process Document

Request for

Goods and

Services

Purchase Requisition Purchasing

Purchase Order

Receiving

Receiving Report

Disb.

Approval Voucher

Cash Disb.

$

Purchasing Cycle

Inventory Mgmt.

Inventory Status AccountingCost

Cost Report

Production

Production Schedule

Warehouse

Time Keeping

Production Cycle

Cash Receipts

Sales Order

Sales Order Processing

Shipping

Accounts Receivable

Hierarchical Block Diagrams

Show the analysis of a system into successive levels of

component subsystems

Connecting lines represent

interlevel associations child relationships)

Hierarchical Block Diagram of

The Revenue Cycle

Data Flow Diagrams

Bridge the gap between

Broad

documentation types

System Narratives Block Diagrams

Document Flow charts

Narrow

documentation types

System Flow Charts

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

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

Data Flow Diagrams

The DFD should consist solely of DFD symbols;

Each symbol in the DFD, including each pointed flowline, should be labeled;

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.

occurring.

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

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

First – the Do’s

All data flows must begin at a process, end at

a process, or both

Data stores cannot

communicate with entities

Entities cannot communicate

with other entities

Data stores cannot

communicate with other

data stores

Processes can communicate with other

processes

All processes must have an incoming and outgoing data flow.

All entities must be

introduced at the context level

Only entities and data store symbols may

be duplicated

Do not cross

data flows

Do not use

double-ended arrow to

represent data flows

Do not use

diverging arrow to represent data flows

Data stores do

not appear on the context level diagram.

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

DFDs Some Helpful Hints

Place entities on the outer edge

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

Acct 316 Acct 316 Acct 316 Acct 316 Acct 316 Acct 316

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.

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.

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

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.

Bank Bank

Management

Credit and Collection

Credit and Collection

Cash Receipts System

Cash Receipts System

Aged Trial Balance

Context Diagram of the Cash

Receipts System at S&S

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

the day, all checks are endorsed by the treasurer and a deposit slip is prepared for the checks and the

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

used to update the accounts

receivable file at the end of the

stored in a file drawer by date.

Update Accounts Receivabl

e

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

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

Wow! That was

see if you can

do it!

Try P6-6

(p 179)

As the internal auditor for Wear Products of Hibbing, MN, you

No-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

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 Wear Products

no-Context Diagram for the Payroll Processing System at No-Wear Products

Management

Payroll 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 Changes Time Card Data

Payroll Data Paycheck Data

Upadate Payroll File (2.0)

Generate Paycheck (3.0)

Generate Payroll Reports (4.0)

Time Card Data

Personnel Changes

Paycheck

Withholding Reports Internal

Reports

Wow! That was

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.

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

(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