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Chapter 5Chapter 5Business Processes: Business Processes: Sales, Purchasing, & Payroll CyclesSales, Purchasing, & Payroll Cycles
ACCOUNTING INFORMATION SYSTEMSACCOUNTING INFORMATION SYSTEMSThe Crossroads of Accounting & ITThe Crossroads of Accounting & IT
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Baseline Accounting System & Transaction Cycles
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Data Flow Diagrams (DFDs) use four symbols:
Agent = Square
Data Flow = Arrow
Data Store (Table) = Open Rectangle
Event or Process = Rounded Rectangle
DFDs
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DFD Example
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Guidelines for Well-Designed DFDs
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DFD: 3 Common Errors
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How Do I Build a DFD (Level 0)?
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How Do I Build a DFD (Level 0)?
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How Do I Build a DFD (Level 0)?
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How Do I Build a DFD (Level 0)?
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How Do I Build a DFD (Level 0)?
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How Do I Build a DFD (Level 1)?
Steps 6-10: Repeat steps 1-5 to create a level-1 DFD.
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Level-1 DFD
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Sales Cycle?
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Create Invoices DFD EspressoCoffee
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Updating a DFD with New Requirements – Exercise
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Management has decided to offer discounts when a customer buys more than one of any given item. This discount only applies to the specific item(s) that the customer purchases in volume. For example if a customer buys five sets of cups and one coffee maker, they will only receive a discount on the cups. The discount percentage is based upon the number of items purchased and not the item itself.
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Receive Customer Payments DFD EspressoCoffee
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Make Deposits DFD EspressoCoffee
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Purchasing Cycle?
Create purchase ordersReceive itemsEnter billsPay bills
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Create Purchase Orders DFD EspressoCoffee
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Receive Items DFD EspressoCoffee
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Enter Items DFD EspressoCoffee
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Pay Bills DFD EspressoCoffee
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Payroll?
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Enter Time DFD EspressoCoffee
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Calculate Payroll DFD EspressoCoffee
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Pay Employees DFD EspressoCoffee
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Pay Payroll Liabilities DFD EspressoCoffee
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Financial Cycle?
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Adjusting Entries DFD EspressoCoffee
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Adjusting Entries
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