Accounting Information Systems - Chapter 7

Sale Order Event

A mutually commitment event where the enterprise agrees to deliver goods to a customer and the customer pays for goods symbolized by sale order document or date entry screen (e.g. order data, promised delivery date, payment terms, dollar amount, which sales representative and customer participated, what products were ordered, etc.) data to record it is entered into sale order, reservation, and sales call-sale order fulfillment table (if separate table)

What notation is used in a conceptual model to represent a duplicate copy of a class that is already used elsewhere in the model?

A diagonal slash is placed through the bottom right corner of the class's rectangle and the attributes are removed from the class

Economic Increment Events in the revenue cycle

Almost always a cash receipt event External agent transfers ownership of cash (or equivalent) to the enterprise Symbolized by a remittance advice document or data entry screen (e.g. date, dollar amount, customer who cash was received, employee who processed receipt, sale or other revenue generating activity to which cash receipt applied, etc.) Resource- cash Internal Agent- cashiers, accounts receivable clerks or other financing personnel External Agent- customers or clients Date to record cash receipt is entered into cash receipt and duality tables

Sale Event

An economic decrement event in which title (ownership) of one or more products is transferred from the enterprise to a customer. Transfer may take place in person or in transit symbolized by a bill of sale, sale invoice, or similar document or data screen (e.g. date, dollar amount, product which title transferred, payment terms, which sales representative and customer participated) sales that occur via transit are usually also symbolized by a packing list and a bill of lading data to record a sale is entered into the sale and stock flow tables and into the sale order- sale fulfillment table (if separate table)

Customer Inquiry Event

An instigation event that is externally initiated; typically involves a customer contacting the enterprise to inquire as to pricing or availability of products or services data is not typically captured for this event

Sales Call Event

An instigation event that is internally initiated; typically involves a sales representative calling on a customer to describe features of goods or services symbolized by a sales call report document or data entry screen (e.g. which sales representative and customer participated, date, start time, end time, location, what products and/or services were presented to the customer and their reactions, etc.) data to record it is entered into the sales call and proposition tables

Agent-Agent Relationships

Assignment and Responsibility

View Integration

Combing the models together to form a complete whole Involves 3 steps

Resource-Agent Relationships

Custody links resource to internal agent use when an internal agent's responsibility for a resource needs to be tracked INDEPENDENTLY of any event

Sales/Collection Process Events

Customer Inquiry Event Sales Call Event Sale Order Event Sale Event Sale Return Event May be internally instigated (marketing events such as sales calls, advertising campaigns, or promotions) May be externally instigated (customer inquiries) Internal Agents- sales/marketing personnel or customer service representatives External Agents- customers there is no need to specifically identify a good or service but rather information about the good or service is sufficient

Attribute Conflicts

Different attributes used to describe the same class is various views Includes all attributes needed for all transaction cycles as attributes for the class in the integrated model Are resolved by performing a set union of the attributes needed for the different cycles

Event-Event Relationships

Fulfillment, reversal, and reciprocal

View Integration - Step 1

Identify the common classes in two conceptual level views -each pair of cycles that is connected in the value chain shares at least one common resource -many cycles have at least one agent in common -cash receipt events and cash disbursement events exit in multiple cycles

Mutual Commitment Events in the Revenue Cycle

Involve enterprise and an external business partner agreeing to exchange resources at a defined future time Don't always happen at a discrete point in time; often involve a series of activities Internal Agents- sales or customer service representatives and/or order entry clerks External Agents- customers Information about type of good or service is sufficient Enterprises would be able to trace mutual commitment events to the instigation events that triggered them

Resource-Resource Relationships

Linkage and Typification

View Integration - Step 2

Merge the common classes, resolving class and attribute conflicts

Mutual Commitment Events involved in the Acquisition/Payment Process

Purchase Order Event Purchase (acquisition) Event Purchase Return Event typically enterprises would like to be able to trace mutual commitment events to the instigation events that triggered them

Event-Resource Relationship

Proposition and Reservation

Economic Decrement Events in the revenue cycle

Represent the revenue generating activities; the giving up one or more resources in order to get some other resource (usually cash) Do not happen at discrete point in time; may involve series of workflow activities Resources vary for different types of businesses (inventory, labor, temporary use of asset) Internal Agents- salespeople, shipping clerks, delivery clerks, service engagement personnel External Agents- customers or clients

View Integration - Step 3

Resolve association conflicts, including name conflicts and structural conflicts -ensure each association has a unique name -ensure multiplicities are appropriate for associations once common classes are merged

Economic Decrement Reversal Events

Reverse economic decrement events e.g. a sale return reverses a sale event

Economic Increment Reversal Events

Reverse economic increment events Giving something back that you hoped would satisfy your needs e.g. a purchase return reverses a purchase event

Purchase Order Event

Supplier agrees to provide goods to the enterprise who agrees to pay a price for those goods symbolized by purchase order document or data entry screen that summarizes information about event (e.g. order date, promised delivery date, payment terms, dollar amount, supplier and purchasing agent participated, who products enterprise ordered, etc.) data to record this is entered into purchase order and reservation tables

Class Name Conflicts

Synonyms and Homonyms

View Modeling

The separate modeling of each transaction cycle

Purchase Return Event

Title (ownership) for goods previously transferred from a supplier to the enterprise are transferred back from the enterprise to the supplier A resource (or resource type) is decreased as a result but this is considered an economic incremental reversal event symbolized by authorized request to return, packing list, and debit memorandum documents or data entry screens that summarize info about the event (e.g. date, what quantities of which products were returned to supplier, dollar amount, etc.) data to record it is entered into purchase return, stock flow association, and reversal association table (of reversal is separate table)

Sale Return Event

Title (ownership) for products that were previously transferred from seller to buyer is transferred back from buyer to seller A resource is increase as a result, but it an economic decrement reversal event Symbolized by sales return authorization, receiving report, and credit memo documents or data entry screen (e.g. data, what quantities of which products were received from customer, dollar amount, customer involved, employee who processed return, etc.) data to record sale return is entered into sale return, reversal association, and stock flow association tables

Purchase (acquisition) Event

Title (ownership) of product is transferred from supplier to enterprise Transfer may take place in person, or via transit Symbolized by a receiving report document or data entry screen that summarizes info about the title transfer (e.g. date, dollar amount, product for which title transferred, payment terms, etc). data to record this is entered into purchase and stock flow tables

View Modeling and View Integration

Used to reduce complexity and to simplify the reality into manageable pieces when designing information systems

Acquisition Cycle Instigation Event

Usually internally instigated; triggered by an identified need Internal agents involved are usually the department supervisor (who identify the need and authorize the expenditure) and purchasing agents (who process the requisitions) there is no need to specifically identify a good or service but rather information about the good or service is sufficient *external instigation is possible and would involve suppliers

Mutual Commitment Event

When commitments by the enterprise and its partners are combined

Economic Decrement Events in the acquisition cycle

almost always a cash disbursement event enterprise transfers ownership of cash (or equivalent) to a supplier symbolized by a check or disbursement voucher document or data entry screen summarizing info about the event (e.g. date, dollar amount, supplier, employee, acquisition or other event to which cash disbursement applied, etc.) resource- typically cash internal agent- cashiers, accounts payable external agent- suppliers or vendors

Commitment Event

an event in which commitments are made by the enterprise or by one of its external business partners for a part of a future economic exchange

Instigation Event

an event that initiates activities in the business process may be internally (e.g. a marketing event) or externally instigated (e.g. call from suppliers salesperson)

Purchase Requisition Event

an instigation event that is entirely internal (e.g. department supervisor communicating need to purchasing department) symbolized by a purchase requisition document or data entry screen that summarizes info about this event (e.g. which department supervisor and purchasing agent participated, date of request, date when goods/services are needed, etc.) data to record is entered into purchase requisition and proposition tables

Typification Relationship

each resource, event, or agent can be related to a resource type, event type, or agent type

Acquisition/Payment Process Event

involve the enterprise and an external business partner agreeing to exchange resources at a defined future time don't always happen at a discrete point in time; often involve a series of activities internal agents- purchasing agents external agents- suppliers there is no need to specifically identify a good or service but rather information about the good or service is sufficient

Reservation Relationship

link commitment events to resources or resource types

Reversal Relationship

link economic events to the events that reverse them

Reciprocal Relationship

link increment and decrement commitment events is the commitment-level equivalent of duality

Proposition Relationship

link instigation events to resources or resource types

Responsibility Relationship

link internal agent to internal agent use when one internal agent is responsible for another, INDEPENDENT of their mutual participation in an event

Fulfillment Relationship

links instigation events to commitment events and links commitment events to economic events

Assignment Relationship

links internal agent to external agent use only when relationship between internal agent and external agent exists INDEPENDENTLY of their mutual participation in an event

Linkage Relationship

links two resources use to identify resource made up of another resource

Homonyms

one class name used to represent two or more different classes

Event-Agent Relationship

relationship between the added events, and internal agents who participate in them

Economic Increment Events in the acquisition cycle

represent receipt of goods or services (usually paid by cash) do not always happen at discrete point in time; involve a series of workflow activities resources vary for different types of businesses (inventory, services, temporary use of asset) internal agents- purchasing agent or receiving clerk external agents- suppliers or vendors

Synonyms

two or more different class names used to represent the same class