Part One Enterprise Accounting Systems: People, Processes, and Technology

4
Extension: Business Process
Mapping Using Data Flow
Diagrams (DFDs)
To customize an accounting system, each baseline module is customized. The baseline modules
for vendors, customers, employees, banking, financial, and reports are expanded and customized
to show the detail of the business processes for the specific enterprise. The employees module,
for example, might be customized by adding payroll features to meet enterprise requirements for
payroll withholdings, such as health insurance, 401(k) contributions, and charitable donations.
Just as satellite mapping can zoom in to see the detailed street view, we can zoom in to see
a detailed view of business processes. For example, we can zoom in to see the detail for creating
an invoice (Figures 4E.1 and 4E.2).
Data flow diagrams (DFDs) are one of the techniques commonly used to document the detail
of business processes for an enterprise. Figure 4E.2 shows a DFD for EspressoCoffee to document
its business process for creating a customer invoice.
DFDs focus on business processes using a pictorial, nontechnical view that is well suited to
learning, designing, and understanding accounting systems. DFDs can be used to expand each of
the transaction cycles shown in the baseline accounting system model.
Notice in Figure 4E.2 how the task of creating an invoice is expanded using a DFD to
­include details about where the invoice is sent and how and where the information is stored in
a database. Next, let’s look more closely at a DFD for EspressoCoffee so you can learn how to
read and build DFDs.

Customers

• Create • Receive
Figure 4E.1 Invoices Customer
Payments
Customers Module
 Module: Customers
Event: Create Invoices
DFD: Level-0

Email Invoice

Credit
Card Warehouse
Company

Customer Customer Credit Delivery

Credit Request Confirmation Information

Order
Information Order Billing
1.0 IInformation 2.0 IInformation 3.0
Process
Customer Process Generate
Customer
Shipping Invoice
Order
Order
Response
Figure 4E.2
Customer
Data Flow Diagram for
EspressoCoffee Create
Invoices
Sales Order
Can you identify the agents
in this DFD? The events trig-
Sales Order Line
gered by the agents? The
database tables used to store
Item
the data?

How Do I Read a DFD?

Just as satellite mapping shows the detailed street view, data flow diagrams show the detailed
view of the customers module for EspressoCoffee (Figure 4E.2). Data flow diagrams basically
document the answers to the following question: Who does what, where, when, and how?
The DFD in Figure 4E.2 reflects the following activities performed by EspressoCoffee to
create an invoice (Figure 4E.3). Keep in mind that data
flow diagrams can be used
◾ A customer places an online order with EspressoCoffee. in two ways:
◾ The customer credit card standing and item availability are verified. 1. As documentation to
◾ The accounting database is updated accordingly. describe the current
◾ The shipping information is sent to the warehouse. ­accounting system
◾ The warehouse ships the product. 2. As a blueprint to
◾ EspressoCoffee creates an invoice, pulling needed information from the accounting ­describe a new,
database. ­
proposed accounting
◾ EspressoCoffee emails the invoice to the customer. system
◾ The accounting database is updated.

 4E-3
4E-4    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Figure 4E.3
QuickBooks Invoice

As you can see in Figure 4E.2, the detailed, customized view for creating an invoice shows
A DFD aids in documenting:
additional detail about the following:
1. Who is interacting within
the specific process? ◾ Agent(s) (Who?)
2. What are the events in ◾ Events (What?)
the process? ◾ Data store or database table (Where?)
3. How is input data ◾ Data flow (When? How?)
t­ransformed into output
In this case, the detailed view for creating an EspressoCoffee invoice shows the following:
data by the process?
4. What subsequent ◾ The customer is the agent.
­ The events are (1) process customer order, (2) process shipping, and (3) generate invoice.
processes are triggered? ◾

5. Where is data stored? ◾ The database tables are Customer, Sales Order, Sales Order Line, and Item.
◾ The data flows from the customer through the events and is stored in the database tables.
The four elements (agent, event, data flow, and database table) are represented by DFD
Who are Gane and Sarson?
symbols shown in Figure 4E.4 and Figure 4E.5.
Gane and Sarson symbols
for DFDs are frequently
used in practice and are Agents: Square
used in our examples. An agent can be a person, system, or part of an organization, such as a human resources depart-
ment. Agents in DFDs are represented by a square.
For our purposes, an external agent is outside the business for which we are designing the
accounting system. Internal agents are employees who hold positions within the organization.

Agent

Data Flow

Data Store (Table)

Event No.
Figure 4E.4
DFD Symbols (Gane and Event
Sarson)
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-5

Data Input Event No. Data Output

Agent A Agent B
Event

Data Stored Data Retrieved

Figure 4E.5
Data Store (Table)
DFD Example

Examples of external agents include:

◾ Vendors
◾ Customers
◾ Consultants
◾ Governmental agencies
Internal agents include:
◾ Employees
◾ Departments of the enterprise
◾ Divisions within the enterprise

Events: Rounded Rectangle

A rounded rectangle in a DFD indicates an event. An event is usually described beginning with
an action verb, such as process customer order or generate invoice. Typically, the event will have
input data (data entering the event) and output data (data exiting the event). For our purposes,
manual processes, such as delivering items to a customer, are not shown in the DFD.

Data Store: Open Rectangle

A data store is represented on a DFD by an open rectangle. For purposes of accounting systems,
data is stored in database tables. As you may recall from Chapter 2, there are numerous interre-
lated database tables that store the data for an accounting system. For example, the database tables
used to store information about customer orders included the Customer table, Sales Order table,
Sales Order Line table, and Item table.
As the DFD traces data flow, the specific database tables used to store the data are indicated
on the DFD. For example, customer information, such as customer number, name, and address
are stored in the Customer table. Information about each line on the sales order is stored in the
Sales Order Line table.
Data flow arrows from the process to the database table indicate data is stored. Data flow
arrows coming out of the database table indicate data is extracted.

Data Flow: Lines and Arrows

Lines and arrows on the DFD indicate data flows in the accounting system. Data flow shows how
data enters a system, how it moves through the system from process to process, where it is stored,
and how it exits the system. In addition, data flows show when data is inserted, updated, or deleted.

DFD: Who Does What, When Where, and How?

When reading a DFD, we want to know who does what, when, where, and how. Our approach to
reading a DFD is to use the following four steps.
Step 1: Identify the agents (internal and external).  In the DFD example in Figure 4E.2, there
are three agents: customer, credit card company, and warehouse. The customer and the credit
card company are external agents. The warehouse is an internal agent.
Step 2: Identify events.  The events are stated using an action verb followed by the object of the
action. For example, after the customer places an order, the events in the DFD are as follows:
◾ Process customer order.
◾ Process shipping.
◾ Generate invoice.
4E-6    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Warehouse

Delivery
Information

Order Billing
1 I
Information 2 IInformation 3
Process
Process Generate
Order Customer
Shipping Invoice
Information Order

Customer

Accounting
Database
Figure 4E.6
Joey’s DFD

Step 3: Identify database tables.  For example, the database tables used in the DFD for creating
an invoice are as follows:
◾ Customer table
◾ Sales Order table
◾ Sales Order Line table
◾ Item table

Step 4: Trace the data flows.  Trace the data flow lines and arrows to see how the data flows
between agents, events, and database tables.

What Would You Do?

Joey, your colleague in IT, asked for your signature approving his DFD for creating a customer
invoice for EspressoCoffee (Figure 4E.6).
What would you do?
a. Sign the approval form.
b. Sign the approval form and email Joey your suggested changes.
c. Do not sign the approval form and email Joey your requests for modifications.
d. Do not sign the approval form and email Joey with a meeting request to review the DFD.
What are the changes you would request?

How Do I Build a DFD?

When building a DFD, you continue to use satellite mapping. With DFDs, you can zoom in to
greater and greater levels of detail. Start with a DFD level-0 (Figure 4E.2). Then zoom in with
greater detail to a DFD level-1 Figure 4E.17. The higher the level number, the more detail the
DFD shows.
The following 10 steps show how a DFD level-0 is created and then expanded into higher
levels of data flow diagrams.
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-7

Ten Steps to Build a DFD

We divide the process of creating a DFD into 10 steps. In steps 1 through 5, we show how to
create a level-0 DFD. In the last 5 steps, we show how a level-0 is expanded to build level-1 and
higher DFDs.
The 10 steps to build a DFD are as follows.
Level 0:
Step 1:  Write narrative for a business activity.
Step 2:  Annotate the narrative.
Step 3:  Create an event-agent-database (EAD) table.
Step 4:  Develop a level-0 DFD fragment for each event in the EAD table.
Step 5:  Combine level-0 DFD fragments into a level-0 data flow diagram.
Level 1 and higher: DFD Design Tips
for EAD Table...
Step 6:  Write a narrative for events in level-0 DFD. 1. More than one agent
Step 7:  Annotate the narrative. can interact with a spe-
Step 8:  Create an EAD table. cific event.
Step 9:  Develop a level-1 DFD fragment for each detailed event in the EAD table. 2. For some events, there
Step 10:  Combine level-1 DFD fragments into a level-1 data flow diagram. may be no agent inter-
Steps 1 through 5 are for level 0. Steps 6 through 10 are for level 1. If a greater level of detail acting with the event.
is needed, steps 6 through 10 are repeated for the next level of detail, level 2, and so on. 3. An event uses at least
The steps to create a DFD for an EspressoCoffee sales invoice follow. one database table.

Step 1: Write a narrative for the business activity (level-0).  This narrative should be a general
description of the business activity and only include major events. It describes how the business
DFD Design Tips
activity is conducted. See Figure 4E.7 for a narrative example for EspressoCoffee.
for Combining
Step 2: Annotate the narrative (level-0).  After a narrative is prepared, you annotate the narrative DFD Fragments...
by identifying and labeling the events in the narrative. Typically, the narrative is told in chrono- 1. When combining one
logical order so you identify the events as event 1.0, event 2.0, and so on. See Figure 4E.8 for DFD fragment with
an example of an annotated narrative. Notice that the events typically describe an action, such as ­another, connect their
process customer order. events with a data flow
Step 3: Create an event-agent-database (EAD) table (level-0).  After annotating the narrative, line. Then specify what
create an event-agent-database (EAD) table. The EAD table has four columns: event number, data is moved from one
event, agent, and data store. The EAD table contains as many rows as the number of events in event to another one.
your annotated narrative. 2. Remove duplicate
­database tables, if any.
a. Place event 1.0 in the first row of the event column. Place event 2.0 in the second row. Remove unnecessary
Continue until all annotated events are placed in the EAD table. Make sure that these duplicate agents.
events are placed in the table in the order in which they are performed.

EspressoCoffee customers place an online order. EspressoCoffee processes the

customer order by sending a request to the credit card company to verify the
customer’s good credit standing. The items are verified for availability. The shipment Figure 4E.7
is processed and sent to warehouse. An invoice is generated from the sales
information and emailed to the customer. The corresponding database tables are Narrative for
updated. EspressoCoffee Create
Invoice (Level-0)

Event 2.0 Event 3.0 Event 1.0

EspressoCoffee customers place an online order. EspressoCoffee processes the

customer order by sending a request to the credit card company to verify the
customer’s good credit standing. The items are verified for availability. The shipment
is processed and sent to warehouse. An invoice is generated from the sales Figure 4E.8
information and emailed to the customer. The corresponding database tables are Annotated Narrative for
updated. EspressoCoffee Create
Invoice (Level-0)
4E-8    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Figure 4E.9  Event-Agent-Database (EAD) Table for EspressoCoffee Create

Invoice (Level-0)
Event Number Event Agent Data Store
1.0 Process Customer Order ◾ Customer ◾ Customer
◾ Credit Card Company ◾ Sales Order
◾ Sales Order Line
◾ Item
2.0 Process Shipping ◾ Warehouse ◾ Customer
◾ Sales Order
◾ Sales Order Line
◾ Item
3.0 Generate Invoice ◾ Customer ◾ Customer
◾ Sales Order
◾ Sales Order Line
◾ Item

b. For each event, identify agents who interact with that event. You may find these agents in
the annotated narrative, or they may be implied in the business activity. Insert agents in the
agent column for the event.
c. For each event, identify database tables used by that event. You may find these tables’
names in the narrative or by verifying the event’s input and output data. Insert database
tables in the data store column for the event.
See Figure 4E.9 for an example of an EAD table.

Step 4: Develop a level-0 DFD fragment for each event in the EAD table (level-0). A DFD fragment
depicts one row in the EAD table. So there will be the same number of DFD fragments as there are
rows, or events, listed in the EAD table. There are three events in the EAD table in Figure 4E.9, so we
will have three DFD fragments (see Figure 4E.10). Each DFD fragment will contain the following:
◾ One event
◾ Agents interacting with that event
◾ Database tables used by that event
Notice that the event ID number in the DFD fragment matches the event number in the
EAD table.

Step 5: Combine level-0 DFD fragments into a level-0 data flow diagram (level-0).  Start with the
first event in the EAD table. Combine the DFD fragment for event 1.0 with the DFD fragment for
event 2.0. To do this, you draw a data flow line from event 1.0 to event 2.0. Remove any unneces-
sary duplicates, such as database tables. Combine the resulting DFD with the DFD fragment for
event 3.0. Continue until you have combined all your DFD fragments. After you have combined
DFD Design Tips all the DFD fragments, you have developed the level-0 DFD. (See Figure 4E.10 for an example.)
for Level-1 EAD Step 6: Write a narrative for events in the level-0 DFD (level-1).  Identify events in your level-0 DFD
Tables... that can be expanded into greater detail. Write a narrative for each of these expanded events. See
When expanding a level-0 Figure 4E.11 for the level-1 detailed events associated with level-0 event 1.0: p­rocess customer order.
event into detailed level-1
Step 7: Annotate the narrative (level-1).  Annotate each narrative by labeling the detailed events
events:
in the narrative. See Figure 4E.12 for the annotated narrative for the detailed events associated
1. The agents remain the
with process customer order. Notice that the detailed events are labeled as 1.1, 1.2, and so on.
same.
2. The database tables Step 8: Create an event-agent-database (EAD) table (level-1).  Create an EAD table as follows:
­remain the same.
a. Place annotated detailed events in the table in the same order they appear in the narrative.
3. The number of events
b. For each detailed event, identify agents who interact with that detailed event. Insert agents
increases.
in the agent column for the event.
4. Some detailed events
c. For each detailed event, identify database tables used by that event. Insert database tables
may not interact with any
in the data store column for the event.
agents.
See Figure 4E.13 for an example.
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-9

Module: Customers
Event: Create Invoices
DFD: Level-0 Fragments

Credit
Card
Company

Customer Credit Customer

Confirmation Credit Request

Order
Information
1.0
Process
Customer
Customer
Order
Order
Response
Customer

Sales Order

Sales Order Line

Item

Delivery
Information 2.0
Warehouse Process
Shipping

Customer

Sales Order

Sales Order Line

Item

Email
3.0 Invoice
Generate Customer
Invoice

Customer

Sales Order

Sales Order Line

Item

Figure 4E.10
Level-0 DFD Fragments for EspressoCoffee Create Invoice
Can you match these DFD fragments to the preceding EAD table?
4E-10    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

EspressoCoffee processes a customer order in the following sequence. After

receiving a customer order and verifying the customer’s identity, the items’
availability is verified. Upon availability of all items, the customer credit standing is
verified. To verify the customer credit standing, an authorization request for the
order total is sent to the credit card company. Upon receipt of the customer credit
Figure 4E.11 confirmation, sales order information is stored in the Sales Order and Sales Order
Narrative for Line tables. If the customer does not have good credit standing or any items in the
EspressoCoffee Process customer’s order are not available, then the customer order is rejected and customer
Customer Order Event is notified.
(Level-1)

Event 1.2 Event 1.4 Event 1.1 Event 1.3

EspressoCoffee processes a customer order in the following sequence. After

receiving a customer order and verifying the customer’s identity, the items’
availability is verified. Upon availability of all items, the customer credit standing is
verified. To verify the customer credit standing, an authorization request for the
order total is sent to the credit card company. Upon receipt of the customer credit
Figure 4E.12 confirmation, sales order information is stored in the Sales Order and Sales Order
Annotated Narrative for Line tables. If the customer does not have good credit standing or any items in the
EspressoCoffee Process customer’s order are not available, then the customer order is rejected and customer
Customer Order Event is notified.
(Level-1)

Step 9: Develop a level-1 DFD fragment for each detailed event in the EAD table (level-1). For
How Do I Know each detailed event in the EAD table, develop a level-1 DFD fragment. The detailed event is
If an Event Is identified by the event number listed in the EAD table. For example, in Figure 4E.14 verify
Level-0? ­order items is event 1.2 (level-0 event 1 and associated level-1 detailed event 2).
If the event is identified
with a dot zero (for Step 10: Combine level-1 DFD fragments into a level-1 data flow diagram (level-1). Combine
­example, 1.0, 2.0, 3.0), your level-1 DFD fragment of the detailed event 1 with the DFD fragment of the detailed event 2.
then you know it is a Combine the resulting DFD with the DFD fragment of the detailed event 3. Continue until you have
level-0 DFD. combined all the level-1 detailed events into one level-1 DFD. See Figure 4E.15 for an example of a
level-1 DFD for process customer order.
The last five steps (steps 6 through 10) are repeated for each level-0 event. See Figure 4E.16
How Do I Know for an EAD table that combines all the detailed events for EspressoCoffee create invoice. See
Figure 4E.17 for a complete level-1 DFD for EspressoCoffee for create invoice. Notice that
If an Event Is
the detailed event numbers in the DFD fragment match the detailed event numbers in the EAD
Level-1?
table. Also notice that for improved readability of the DFD, the customer agent is duplicated,
If the event is identified
­appearing twice in the DFD. DFD design guidelines permit you to show duplicate agents and
by a dot followed by a
data stores for clarity, but not duplicate events in the same DFD.
number greater than zero,
If required, the last five steps can be repeated to expand the level-1 DFD into level-2 and
(for example, 1.2, 2.1,
higher levels.
3.2), then you know it is a
level-1 DFD.
Figure 4E.13  Event-Agent-Database (EAD) Table for EspressoCoffee Process
Customer Order Event
How Do I Know
If an Event Is Event Number Event Agent Data Store
Level-2? 1.1 Verify Customer Identity ◾ Customer ◾ Customer
If the event is identified 1.2 Verify Order Items ◾ Customer ◾ Item
by a dot followed by two 1.3 Verify Customer Credit ◾ Customer ◾ Customer
­numbers, (for example, ◾ Credit Card Company
1.2.1, 2.1.3, 3.2.4), then you 1.4 Store Order Information None ◾ Sales Order
know it is a level-2 DFD. ◾ Sales Order Line
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-11

Module: Customers
Event: Create Invoice: Process Customer Order
DFD: Level-1 Fragments

Customer and
Order Information 1.1
Verify
Customer
Customer
Identity

Customer

Item Availability
Information 1.2
Customer Verify
Order Items

Item

Credit
Card
Company

Customer Customer Credit

Credit Request Confirmation

Customer Credit
Information 1.3
Verify
Customer
Customer
Credit

Customer

1.4
Store Order Figure 4E.14
Information Level-1 DFD Fragments for
EspressoCoffee Process
Customer Order Event
Sales Order
Can you match these DFD
fragments to the preceding
Sales Order Line
EAD table?

What Are the Secrets For clarity, you can

­ uplicate agents and
d
of a Well-Designed DFD? tables, but you cannot
­duplicate events
When designing data flow diagrams, there are a few guidelines for creating well-designed
(processes) in a DFD.
DFDs. These guidelines focus on accurately representing how the data flows through the sys-
tem. As shown in Figure 4E.18, guidelines for well-designed DFDs include the following:
1. A process must be performed on data flowing from one agent to another agent. There
should always be a process shown in the data flow between two agents.
2. A process must be performed on data flowing from an agent to a database table.
3. A process must be performed on data flowing from a database table to an agent.
4. A process must be performed on data flowing from one database table to another
database table.
4E-12    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Module: Customers
Event: Create Invoices: Process Customer Order
DFD: Level-1

Customer Credit Customer

Information Credit Request
Credit
Customer Card
Company
Item Availability Customer Credit
Information Confirmation
Customer
and Order
Information
Verified Verified Verified
Customer Order Credit
1.1 Information 1.2 Information 1.3 Information 1.4
Verify Verify
Verify Store Order
Customer Customer
Order Items Information
Identity Credit

Item Customer Order

Information Information Information

Item Sales Order

Customer Order Items
Information Information
Customer Sales Order Line

Figure 4E.15
Level-1 DFD for EspressoCoffee Process Customer Order Event
Can you match these DFD events to the preceding DFD fragments?

Figure 4E.16  Event-Agent-Database (EAD) Table for EspressoCoffee Create

Invoice Event (Level-1)
Event Number Event Agent Data Store
1.1 Verify Customer Identity ◾ Customer ◾ Customer
1.2 Verify Order Items ◾ Customer ◾ Item
1.3 Verify Customer Credit ◾ Customer ◾ Customer
◾ Credit Card Company
1.4 Store Order Information None ◾ Sales Order
◾ Sales Order Line
2.1 Generate Packing Slip Warehouse ◾ Sales Order Line
◾ Item
2.2 Generate Shipping Labels Warehouse ◾ Customer
3.1 Update Customer Order None ◾ Sales Order
Information ◾ Sales Order Line
3.2 Send Customer Invoice Customer ◾ Customer
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-13

Module: Customers
Event: Create Invoices
DFD: Level-1

Customer Credit Customer

Information Credit Request
Credit
Customer Card
Company
Item Availability Customer Credit Packing Slip
Information Confirmation
Customer
and Order
Information
Verified Verified Verified Updated
Customer Order Credit Shipping Shipping Shipping
1.1 Information 1.2 Information 1.3 Information 1.4 Information 2.1 Information 2.2 Labels
Verify Verify Generate
Verify Store Order Generate Warehouse
Customer Customer Shipping
Order Items Information Packing Slip
Identity Credit Labels

Item Customer Items Order

Information Information Information Information

Shipping
3.1 Confirmation
Update
Customer Order
Update Item Sales Update Information
Information Information Sales
Order
Update
Invoice
Information

Email
Item Sales Order 3.2 Invoice
Send
Customer
Customer
Order Items Update Sales Invoice
Information Order Line
Sales Order Line
Customer
Information
Customer
Customer
Information

Figure 4E.17
Level-1 DFD for EspressoCoffee Create Invoice

Incorrect Data Flow Correct Data Flow

Agent A Agent B Agent A Process Agent B

Data Store Data Store

Agent A Agent A Process
(Table) (Table)

Data Store Data Store

Agent A Process Agent A
(Table) (Table)

Data Store Data Store Data Store Data Store

Process
(Table) A (Table) B (Table) A (Table) B

Figure 4E.18
Guidelines for Well-Designed DFDs
4E-14    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Key Terms Check

Understanding the language used at the crossroads of accounting and IT is key to your success.

4E.1 Match the following terms and definitions.

a. Data flow diagrams (DFDs) ___  1. A process represented by a rounded rectangle
b. Data flows ___  2. An agent outside the enterprise
c. Data stores ___  3. A database table represented by an open rectangle
d. Events ___  4. A person or department represented by a square
e. Agents symbol
f. External agent ___  5. Employees within the organization
g. Internal agent ___  6. Shows how data enters, moves, and exits a system
___  7. A technique used to document business processes
­using agent, event, data store, and data flow
symbols

Exercises
Each Exercise relates to one of the major questions addressed in the chapter and is labeled with the question
number in green.

Short Exercises
Warm up with these short exercises.

4E.2 Match the following DFD terms with the appropriate example. (Q4E.4)
a. Agent ___  1. Customer
b. Event ___  2. Customer table
c. Data store ___  3. Verify customer credit
d. Data flow ___  4. Credit card company
___  5. Generate shipping labels
___  6. Item table
___  7. Data retrieved from the Item table
___  8. Sales Order table
___  9. Shipping confirmation sent to customer
___ 10. Warehouse

4E.3 For a bank ATM transaction, identify the following: (Q4E.4)

1. Agents
2. Events
3. Data stores

4E.4 Select an authentic enterprise of your choice, and describe how the enterprise processes
sales transactions with customers. List the following: (Q4E.4)
1. Agents
2. Events
3. Data stores

4E.5 The following data flow diagram has three agents (A1, A2, A3), two processes (P1,
P2), and two database tables (T1, T2). Identify and list the errors that you see in the DFD.
(Q4E.6)
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-15

A1 P1 A3

T1 T2

A2 P2

Tech in Practice
These technology in practice exercises are perfect for both individuals and teams.

Tech Exercises
Sharpen your skills with these technology exercises. Watch these software
­videos at www.pearsonhighered.com/kay.

4E.6
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Use the following event-agent-database (EAD) table to complete the two requirements.
1. Build a DFD.
2. Based on the EAD table, what level DFD did you build?
Since the events numbers end with .0 then the DFD level is 0.

Event Number Event Agent Data Store

1.0 Process Customer Order ◾ Customer ◾ Customer
◾ Employee ◾ Sales Order
◾ Sales Order Line
◾ Item
2.0 Generate Invoice ◾ Customer ◾ Customer
◾ Sales Order
◾ Sales Order Line
◾ Item

4E.7
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Use the following narrative to complete the accompanying requirements.
MiaPizza is a small family-run pizza parlor that accepts only cash. A customer places a pizza
order by calling the 800 number. MiaPizza takes the order over the phone. The order is entered
into the system. A customer receipt is printed and taped to the pizza box. Then the pizza is
delivered.
1. Annotate the narrative, labeling and numbering the events.
2. Create an event-agent-database (EAD) table.
3. Build a level-0 DFD.
4E-16    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

4E.8
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Select an authentic enterprise of your choice.
1. Observe the sales transactions of this enterprise.
2. List the agents, events, data stores, and data flows that you observe.
3. Draw a data flow diagram (DFD) to document the sales transactions showing agents,
events, data stores, and data flows.
4. Do you see any improvements the enterprise might make? List your recommendations to
streamline and improve the business process.

4E.9
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Use the following level-0 DFD for Bamboo Furniture and the narrative to complete the
­accompanying requirements.

Invoice

Credit
Card Warehouse
Company

Customer Customer Credit Delivery

Credit Request Confirmation Information

Order
Information Order Billing
1.0 IInformation 2.0 IInformation 3.0
Process
Customer Process Generate
Customer
Delivery Invoice
Order
Order
Response

Customer

Sales Order

Sales Order Line

Item

Event 1.0 Process Customer Order Narrative:

Bamboo Furniture customers view and make furniture selections on the showroom floor.
Employees check item availability using the enterprise database. If the items are available in
the warehouse, the employee obtains the customer information to place the sales order. If the
items are not available, the customer is notified. If the customer chooses to still place the order,
the customer information is obtained and the order is placed with the manufacturer. Customer
credit is verified by sending an authorization request to the credit card company for the amount
of the purchase. After the customer credit is verified, sales order information is stored in the
Sales Order and Sales Order Line tables. If the customer does not have a good credit stand-
ing, the customer order is rejected and the customer is notified.
 Chapter 4  •  EXTENSION: BUSINESS PROCESS MAPPING USING DATA FLOW DIAGRAMS (DFDS)    4E-17

1. Annotate the narrative, labeling and numbering the events.

2. Create an event-agent-database (EAD) table.
3. Build a level-1 DFD for event 1.0.

4E.10
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Use the following level-0 DFD for Bamboo Furniture and the narrative to complete the
­accompanying requirements.

Invoice

Credit
Card Warehouse
Company

Customer Customer Credit Delivery

Credit Request Confirmation Information

Order
Information Order Billing
1.0 IInformation 2.0 IInformation 3.0
Process
Customer Process Generate
Customer
Delivery Invoice
Order
Order
Response

Customer

Sales Order

Sales Order Line

Item

Event 2.0 Process Delivery Narrative:

After a customer order is placed with Bamboo Furniture and the furniture is located in the ware-
house, the delivery date for the furniture is scheduled. The customer is notified of the delivery
date, the customer address is verified, and the appropriate database tables are updated.
1. Annotate the narrative, labeling and numbering the events.
2. Create an event-agent-database (EAD) table.
3. Build a level-1 DFD for event 2.0.

4E.11
Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing
Use the following level-0 DFD for Bamboo Furniture and the narrative to complete the accom-
panying requirements.
Event 3.0 Generate Invoice Narrative:
After the delivery date is scheduled, customer and sales order information is updated. The in-
voice is printed and delivered with the furniture to the customer.
1. Annotate the narrative, labeling and numbering the events.
2. Create an event-agent-database (EAD) table.
3. Build a level-1 DFD for event 3.0.
4E-18    Part OnE  •  Enterprise Accounting Systems: People, Processes, and Technology

Invoice

Credit
Card Warehouse
Company

Customer Customer Credit Delivery

Credit Request Confirmation Information

Order
Information Order Billing
1.0 IInformation 2.0 IInformation 3.0
Process
Customer Process Generate
Customer
Delivery Invoice
Order
Order
Response

Customer

Sales Order

Sales Order Line

Item

Technology Projects
These technology projects are perfect for both individuals and teams.

Technology Project 4 Extension

Tech Tool: Spreadsheet Software or Visio Software
Software Videos: DFD Drawing or Visio DFD Drawing

Technology Project 4 Extension is your opportunity to practice building data flow diagrams
for iSportDesign. With this project, you will use either spreadsheet software or Visio software.
(Ask your instructor which software you will be using to complete this technology project.)

Your deliverables for the Project 4 Extension include the following:

Deliverable 1. An event-agent-database (EAD) table
Deliverable 2. Level-1 DFD

Visit www.pearsonhighered.com/kay to do the following:

1. Download Technology Project 4 Extension instructions.
2. Download files provided online for your convenience in completing the project
deliverables.
3. Watch the videos with software instructions to complete this project at www.pearsonhighered.
com/kay.