Lecture Accounting information systems: Chapter 7 - Richardson, Chang, Smith

Chapter 7 - Conversion business process. In this chapter students will be able to: Describe the business activities that comprise the conversion process, develop an activity model of the conversion process using BPMN, understand and apply different activity modeling options, develop business rules to implement controls for the conversion process.

Conversion Business Process

Copyright © 2014 McGraw­Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw­Hill Education.

• LO#1 Describe the business activities that

comprise the conversion process

• LO#2 Develop an activity model of the conversion

process using BPMN

• LO#3 Understand and apply different activity

modeling options

• LO#4 Develop business rules to implement controls

for the conversion process

• LO#5 Develop a structure model for the conversion

process using UML class diagrams

• LO#6 Implement a relational database from the

UML Class

Review of Conversion Accounting

7-3

Basic Purchases BPMN Activity Model

The basic activity model implements the process steps.

Refining the Model with Swimlanes

7-5

First, define one pool and swimlanes showing functional

responsibility.

The inventory manager tracks

inventory levels and authorizes new production

The conversion partners set up

batches and perform work to create finished signs and banners

Refining the Model with Swimlanes

Then, define the steps performed by each function.

Refining the Model

7-7

• Intermediate error event interrupts flow if inspection failed

• Process flow loops until the batch is complete

Issue R/ M Perform Work

Batch Done?

No

Yes Setup

Discard Errors

Refining the Model

Second loop in process flow until all batches are complete

Issue R/ M Perform Work ProductionComplete

Batch Done?

No

Yes Setup

Batch Inspect Work

Discard Errors

All Done? Yes

No

7-9

Process

Steps

Intention Partner

Authority/Action

Access Controls Application

Controls

Authorize

Production

Partner with proper authority authorizes production to

ensure finished goods available to meet expected demand

Supervisor must authorize

production >

$5,000

Partner authorizing production cannot modify inventory records

System must provide

authorization order number control, default values, range and limit checks, and create audit trail

Issue Raw

Material

Issues from raw material according

to bill of material recorded accurately

Partner issuing material must not

be same partner that authorized production

Partner recording issue of material cannot modify bill

of material

System must only allow partner to enter the number of items issued based

on bill of material, subject to range and limit checks on quantities

Business Rule Types

Supervisor must authorize

production > $5,000.

Example of Obligatory rule – states would should

occur

Partner issuing material

must not be same partner

that authorized production

Example of Prohibited rule – states what should not occur

Sunset’s Basic Conversion UML Class

Models

7-11

1. Authorization

2. Which finished goods to produce

3. Records R/M Issue

4. Specifies the bill of materials

5. Records use of labor

Revised Conversion UML Class

Diagram

Bill of materials promoted

to Type Image

Sunset Partners

Production Authorization

Labor Operations

Products

Materials Material

Issue

Product Categories

Bill of

1 1 1 1

1 1 1 1

1 1

1 1 1 *

1 1

1 *

0 *

1 1

0 *

1 *

0 *

0 *

0 *

0 *

1 *

0 *

0 *

0 *

Partners responsible for specific Product

Categories

Implementing UML Diagram in a

Database

7-13

Database will contain 8 tables to implement classes and 2 linking

tables for the relationship between Purchases and Products.

Sunset Partners

Production Authorization

Labor Operations

Products

Materials Material

Issue

Product Categories

Bill of

1 1 1 1

1 1 1 1

1 1

1 1 1 *

1 1 1 *

0 *

1 1

0 *

1 *

0 *

0 *

0 *

0 *

1 *

0 *

0 *

0 *

Posting Foreign Keys Example

Foreign keys implement links for one-to-many relationships

Sunset Partners

Production

Authorization

Material

Issue

1 1

1 1 1 1

0 *

0 *

0 *

Which tables will get foreign keys?

Database Relationships

7-15

Blue arrow highlights linking tables to implement

the two many-to-many relationships.