Kế toán, kiểm toán - Chapter 5: Sales and collections business process

Chapter 5Sales and Collections Business ProcessCopyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Learning Objectives5-2LO#1 Describe the business activities that comprise the sales and collection processLO#2 Develop an activity model of the sales and collection processLO#3 Understand and apply different activity modeling optionsLO#4 Develop business rules to implement controls for the sales and collection processLO#5 Develop UML Class Diagrams for the sales and collection processLO#6 Implement a relational database from the UML Class Diagram of the sales and collection processLO#7 Use multiplicities to implement foreign keys in relational tablesReview of Sales and Collections Accounting5-3LO# 1Sunset Graphics Continuing ExampleSunset graphics design and sell signs and banners, lettering and vinyl graphics for vehicles and boats, corporate promotional items, and silk-screened t-shirts and embroidered gear, among other products. 5-4LO# 2Sunset Graphics Sales Process DescriptionSunset prepares a quote that carefully describes the products and services to be provided to the customer Customer places the order for all or part of the quoted products and servicesSunset orders any products not in inventory from their suppliers (outside the sales process)Sunset applies graphicsSunset delivers the products to the customerSunset bills the customer and collects payment5-5LO# 2Basic BPMN activity model5-6LO# 2BPMN Model Refinement 5-7Collaboration Sales Activity ModelLO# 3Further BPMN Model Refinement 5-8Collaboration Sales Activity Model emphasizing the CHOREOGRAPHY – message flows between pools, since Sunset is not interested in the Customers activities. To clarify the diagram, the message flows should be labeled, e.g., “quote information” for the first message flow.LO# 3More BPMN Model Refinement 5-9Considering EXCEPTIONS to the process. Shows the process flow when the supplier does not have the products necessary to fulfill the customer’s order. Sub-process represents the PURCHASING activities without the detail; the INTERMEDIATE ERROR EVENT shows exception flow.LO# 3Business RulesBusiness rules help ensure that information systems operate in a consistent and effective manner to achieve organizational objectives.Business rules are constraints on the process. Business rules implement control activities, such asApprovals, authorizations, verifications, and reconciliationsReviews of operating performanceSecurity of assets and segregation of duties5-10LO# 4Establishing Business Rules for Sunset’s SalesDefine objectives for each important business eventUse the BPMN activity diagram to identify important business eventsDefine constraints on each eventWhat people/employees can do.What information is available and not availableWhat the information system should do5-11LO# 4Sample Business Rules5-12Process StepsIntentionPartner Authority/ActionAccess ControlsApplication ControlsProvide QuoteProvide quotes promptly and accuratelyPartner must provide quote within 1 business day of request; Manager must approve quotes > $5,000Partners preparing quotes cannot modify established product and service pricesSystem must provide quote number control, default values, range and limit checks, and create audit trailReceive OrderRecord order promptly and accurately; ensure customer credit is authorizedPartner must record order within one hour of receipt; Manager must approve orders > $5,000; Credit manager must approve credit order > $1,000Partners accepting orders cannot modify established product and service prices; Partners accepting orders cannot approve request for customer credit > $1,000.System must provide order number control, default values, range and limit checks, and create audit trail; system links quote to orderSunset Graphics Structure ModelsThe primary purpose of an UML model of the sales and collection process is to create a blueprint for the development of a relational database to support the collection, aggregation, and communication of process information.To develop UML class diagrams, the REA framework (resources, events, and agents) is a proven approach to describing business processes in a way that meets both accounting and broad management information requirements.5-13LO# 5Sunset’s Quotes - Defining Business RelationshipsEach Sunset Partner may participate in a minimum of zero Quotes and a maximum of many Quotes, but each Quote involves only one Sunset PartnerEach Customer may participate in zero to many Quotes and each Quote is prepared for only one CustomerEach Quote specifies prices and quantities for at least one product5-14LO# 5Modeling Sunset’s Quotes5-15LO# 5Adding the Order Event5-164. Each quote can result in a minimum of 0 orders and a maximum of many orders. Each order may related to 0 or 1 quote (some orders don’t have quotes).LO# 5Adding Cash Receipts5-175. Each order can be either paid or unpaid. 6. Each cash receipt is deposited into one bank accountLO# 5Type Images for Categorical InformationType images apply guidelines, constraints, and descriptive information to their resources, events, and agents to help manage the business processType images also support summarization of the economic activity to support management’s information requirementsFor Sunset Graphics, type images allowProduct categorizationOrder status summaryAssignment of partners to manage product categories5-18LO# 5Adding Type Images to the Model5-19Orders (and Sales) can be summarized by product category.Sunset partners can be assigned to manage on or more product categories.LO# 5UML Class Models Support DB PlanningThe database will contain one table for each class plus one table to support each many-to-many relationshipsMultiplicities indicate location of foreign keysMultiplicities indicate linking tables5-20LO# 65-21This model would result in a database with 9 tables for classes and 2 linking tables.Linking TablesLO# 6Posting Foreign Keys ExampleCustomer Number is posted in the Quote table as a foreign key.Customer Number is posted in the Order table as a foreign key.Quote Number is posted in the Order table as a foreign key.LO# 75-22Rule of ThumbPOST TOWARD THE * and AWAY FROM THE 1The primary key of Customer should be a foreign key in the Sale Table!5-23Resulting DB Tables and Relationships5-24LO# 6