Exam 3 Review Chapter 4 04 04 2013 Flowchart Definition graphical representation of a business process including information processes inputs data processing data storage and outputs as well as the related operations processes people equipment organization and work activities o Understanding the flow of transactions o Identify where controls have been implemented o Identify where gaps in controls may exists o Defining or improving controls to close any gaps Symbols Match description of diagram with the diagram Exception routine error routine handle required actions for out of the ordinary exceptional or erroneous events data processing performed in other than normal situations should be documented below the level 0 with reject stubs that indicate that exceptional processing must be performed Data Flow Diagrams portray business process activities stores data flows of data among those elements 3 types o context top level or least detailed diagram of a system depicting the system and all its activities as a single bubble and showing the data flows into and out of the system and into and out of the external entities highest level one internal entity entity within the system that transforms data such as accounting clerks departments and computers circles several external entities entities outside the system that send data to or receive data from the system squares o physical graphical representation of a system showing the system s internal and external entities and the flows of data into and out of these entities specifies where how and by whom same external entities as context more internal entities than context depicts system s infrastructure labeled with titles of positions or computer o logical graphical representation of a system showing the system s processes as bubbles data stores and the flows of data into and out of the processes and data stores specifies what same external entities as context more internal entities than context many levels possible not necessary portrays system s activities labeled with what s being done balanced diagram o definition DFDs are balanced when the external data flows of two or more DFDs are equivalent same external entities and data flows o identify if diagram is balanced or not top down partitioning o the successive subdividing or exploding of logical DFDs that when performed leads to a set of balanced DFDs Chapter 10 Order entry sales process First 4 steps in order to cash process Consists of o Presales activities o Sales order processing o Picking and packing goods o Shipping Customer acknowledgement notifies the customer of the order s acceptance and the expected shipment date Picking ticket authorizes the warehouse to pick the goods from the shelf and send them to shipping identifies the goods to be picked and usually indicates the warehouse location Bill of lading contract between the shipper and the carrier in which the carrier agrees to transport the goods to the shipper s customer Packing slip sent with the package to identify the customer destination and contents Tickler file review file of open sales orders to detect any shipments that should have taken place this will ensure that all shipments are made in a timely manner Trigger Preformatted screens is directed primarily at ensuring input data flow or event that causes a process to begin accuracy Digital image processing systems are capable of capture storage retrieval and presentation of pictures and documents Bar code readers devices that use light reflection to read differences in bar code patterns in order to identify a labeled item Valid shipping notice input is support by an approved sales order and an actual shipment of goods Customer order input validity comes from a valid shipping notice customer master data Most important asset to any company is a happy customer Logical level 0 DFD Be familiar with the bubbles and the data flows Chapter 11 B AR CR process Completes the order to cash process Consists of o Billing customers o Managing customer accounts o Securing payment 04 04 2013 Review Logical Level 0 DFD Be familiar with the bubbles and the data flows Know the Treasurer s goal Make funds available to acquire assets make investments or reduce interest charges Reduce float and hasten the availability of good funds Triggers of the process Billing shipping notification Cash receipts check and remittance advice Lapping Fraud by which funds being paid by one customer are stolen and the theft is covered up by applying funds from another customer to the first customer s account Rotation of duties and forced vacations help prevent this type of fraud Immediately endorse incoming checks To protect payments from being fraudulently misappropriated thereby securing the cash asset Checks should be restrictively endorsed as soon as possible following their receipt in the organization Two types of accounts receivable systems Balance forward o AR records show a customer s balance current past due and current account activity including current charges finance charges for past due balances and payments o Monthly statements display previous balance payments and balance forward to which is new charges added to get the current balance due o Unpaid current balances are rolled into the past due balances Open item o Appropriate where invoices are prepared and sent for each sales o In the AR master data each record consists of individual open invoices to which payments and adjustments are applied o Periodic statements list invoices and payment details o Monthly or at specified times customer accounts are aged and an aging schedule is printed Two types of billing systems Pre billing system o Invoice prepared upon acceptance of customer order after inventory and credit checks o Little or no delay between receiving order and shipping Post billing system o Invoices are prepared after goods are shipped and shipping notice compared to sales order notice o May be delay between receiving the order and shipping Lockbox payments are send directly to a third party lockbox service for more secure timely efficient and accurate processing a bank Float time between payment by the customer and the availability of good funds Good funds funds on deposit and available for use Electronic bill presentment B2C systems that use a Web site to post customers bills and to receive their electronic payments Biller direct method company posts its bills invoices to its own Web site or Web site hosted by third party