Lecture Accounting information systems: Chapter 6 - Richardson, Chang, Smith

Chapter 6 - Purchase and payments business process. After reading this chapter, you should be able to: Describe the business activities that comprise the purchase and payment process, develop an activity model of the purchase and payment process using BPMN, understand and apply different activity modeling options.

Chapter 6

Purchase and Payments Business Process

Learning Objectives

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• LO#1 Describe the business activities that comprise the

purchase and payment process

• LO#2 Develop an activity model of the purchase and

payment process using BPMN

• LO#3 Understand and apply different activity modeling

options

• LO#4 Develop business rules to implement controls for

the purchase and payment process

• LO#5 Develop structure models for the purchase and

payment process using UML class diagrams

• LO#6 Implement a relational database from the UML

Class Diagram of the purchase and payment process

Review of Purchases and Payments

Accounting

Sunset Graphics Purchases Process

1. Research prices and product availability

2. Select the best price and availability

combination and send a purchase order

to the supplier

3. Receive the items from the supplier (and

record the purchase and accounts

payable)

4. Pay the supplier according to the credit

Basic Purchases BPMN Activity Model

The basic activity model implements the process steps.

Collaboration Model of the Purchases

Process

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The collaboration model focuses on the message flows between the

pools.

Adding Swimlanes to Show Functional

Responsibility

Swimlane

s show

functional

responsibil

ities

Business Rules Examples for

Purchases Process

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Process

Steps

Intention Partner Authority/Action Access Controls Application Controls

Place Order Order

products from reliable

suppliers at the best available prices to meet required delivery time

Manager approval required for orders >

$5,000; Partner ordering products must not manage inventory

Partners preparing purchase orders cannot modify product inventory records, receive items, or pay suppliers

System must provide purchase order number control, default values, range and limit checks, and create audit trail

Receive

Items

Record receipt of items promptly and accurately

Partner receiving items must not be same

partner that ordered the items

Partners receiving items cannot

modify purchase orders or

inventory records;

they cannot view purchase order quantity ordered information

System must only allow partner to enter the number of items received, subject to range and limit checks on quantities received; date of receipt

defaults to current date

Sunset’s Basic Purchases UML Class

Models

1. Purchase Orders are commitments to purchase from the supplier

2. Receipts document the receipt of items from the supplier (when purchases

recognized)

Cash disbursements pay for one or more receipts

Revised Purchases UML Class

Diagram

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Purchase Orders and Receipts collapsed into one Purchases events

Added Product Categories type image as defined in Chapter 5

Added Supplier Categories type image to show Sunset Partner responsibility for

Categories

Implementing UML Diagram in a

Database

Database will contain 8 tables to implement classes and 1 linking table for the

relationship between Purchases and Products

Posting Foreign Keys Example

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Sunset Partner

Purchases

Supplier

1 1

0 *

0 *

1 1

Partner Number posted to Purchases

Supplier Number posted to Purchases

Foreign keys implement links for one-to-many

relationships

Post towards the * and

away from the 1

Database Relationships

Which relationship is missing? How would you implement that?

Did you notice the similarity between the sales process and the purchase

process?

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