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McGraw-Hill/Irwin Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

ENTERPRISE INFORMATIONSYSTEMS

A PATTERN BASED APPROACH

Chapter 9

The Acquisition/Payment Business Process


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Chapter Learning Objectives

1. Identify activities and documents common toacquisition/payment business processes for variousenterprises

2. Identify the components of the REA ontology in theacquisition/payment business process

3. Explain how the acquisition/payment business process fits

into an enterprises value system4. Explain how the acquisition/payment business process fits

into an enterprises value chain

5. Create a REA business process level model for anenterprises acquisition/payment business process

6. Identify common information needs within theacquisition/payment process

7. Create queries to meet common information needs in theacquisition/payment process


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Acquisition/Payment Process in an

Enterprise Value System


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Acquisition/Payment Business

Process in Enterprise Value Chains

Partial value chain

for a manufacturer

Partial value chainfor a distributor


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REA Acquisition/Payment

Business Process Level Pattern


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REA Acquisition/Payment Business

Process Level Pattern: Operating Assets


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Acquisition/Payment Process Events

Instigation Events in the Expenditures Are usually internally instigated; triggered by an identifiedneed

External instigation is possible, e.g. need may beidentified as result of supplier visit

Internal agents involved in acquisition cycle instigationevents usually are department supervisors (who identifythe need and who authorize the eventual expenditure)and purchasing agents (who process the requisitions)

External agents involved in acquisition cycle instigationevents usually are suppliers

Typically there is no need to specifically identify a good orservice for purposes of instigation events; informationabout the type of good or service promoted is usuallysufficient


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Purchase/Requisition Event

Purchase Requisition Event An instigation event that is entirely internal; typically

involves a department supervisor identifying a need

for a type of good or service and communicating that

need to the purchasing department

Is usually symbolized by a purchase requisitiondocument or data entry screen that summarizes

information about this event (e.g. which department

supervisor and which purchasing agent participated,

date of request, date by which goods or services are

needed, what goods and/or services are needed, anyrecommended source/supplier, etc.)


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Purchase Requisition


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Relational Tables Encompassing

Purchase Requisition event


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Mutual Commitment Events in the Acquisition/Payment Process Involve the enterprise and an external business partner

agreeing to exchange resources at a defined future time

Dont always happen at a discrete point in time; ofteninvolves a series of activities

Internal agents are usually purchasing agents

External agents usually are suppliers

Typically there is no need to specifically identify a goodor service for purposes of mutual commitment events;information about the type of good or service promoted is

usually sufficient Ideally enterprises would like to be able to trace mutual

commitment events to the instigation events thattriggered them


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Purchase Order Event

A mutual commitment event whereby a supplieragrees to provide goods to the enterprise and the

enterprise agrees to pay an ascertained price for

those goods

Is usually symbolized by a purchase orderdocument or data entry screen that summarizes

information about this event (e.g. order date,

promised delivery date, payment terms, dollar

amount, which supplier and purchasing agent

participated, what products the enterprise ordered,etc.)


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Rental Order Event

A mutual commitment event whereby a supplieragrees to transfer possession of some goods to theenterprise for a defined time period and bestowson the enterprise the right to use the goods for aprescribed purpose; in exchange the enterprise

agrees to pay an ascertained price Is usually symbolized by a rental contract

document that summarizes information about thisagreement (e.g. contract date, dollar amount,goods to be rented, time period for which each

good is to be rented, payment terms, whichpurchasing agent and suppliers participated, etc.)


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Service Order Event

A mutual commitment event whereby a supplieragrees to perform one or more services for the

enterprise during a defined time period for an

agreed upon price to be paid by the enterprise

Is usually symbolized by a service contractdocument that summarizes information about

this agreement (e.g. contract date, dollar

amount, services to be performed by supplier,

time period during which services will be

performed, payment terms, which purchasingagent and supplier participated, etc.)


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Purchase Order


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Purchase Order Event


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Economic Increment Events in the AcquisitionCycle

Represent the receipt of goods or services for which the

enterprise will give up some other resource (usually cash)

Do not always happen at discrete points in time; may

involve a series of workflow activities Resources vary for different types of businesses

Inventory (Inventory type may substitute for Inventory),

Services (Service Type may substitute for Services),

Temporary use of asset (as in a rental)

Internal Agents are typically purchasing agents andreceiving clerks

External Agents are typically suppliers or vendors


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Purchase (aka Acquisition) Event

Economic increment event in which title (ownership) of one ormore products is transferred from a supplier to the enterprise.

The transfer may take place in person (e.g., purchase agent

goes to Office Depot to buy paper, or supplier hand-delivers

goods to enterprise) or via transit (supplier shipped goods to

enterprise)

Usually symbolized by a receiving report document or data entry

screen that summarizes information about the title transfer (e.g.

date, dollar amount, product(s) for which title transferred,

payment terms, which purchase agent and supplier participated,

etc. Supplier invoice information may also be included in

recording this event, but should not be used as the exclusiverepresentation of this event (because there is usually a time lag

between title transfer and receipt of supplier invoice)


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Rental Acquisition Event

Economic increment event in which possessionof goods is transferred to the enterprise by asupplier for an agreed upon length of time for anagreed upon purpose and price

Usually occurs over an extended period of time,

rather than occurring at a single point in time Is usually symbolized by documents or data entry

screens that summarize information about thetransfer of possession of goods from the supplierto the enterprise and then the return of goods to

the supplier (e.g. dates, times, which products,suppliers, and employees were involved, etc.)


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Service Acquisition Event

Economic increment event in which a supplierperforms one or more types of service for the

enterprise

May occur over a period of time or may be

performed at a single point in time

Is usually symbolized by a document indicating

the receipt of services (or equivalent data entry

screens) that summarize the information (e.g.

dates, times, types of service performed, the

supplier and employee involved, possibly some

notes as to the quality of services received, etc.)


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Receiving Report


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Vendor (Supplier) Invoice


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Purchase Event


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Economic Decrement Events in the Acquisition Cycle Almost always is a Cash Disbursement event An economic decrement event whereby the enterprise

transfers ownership of cash (or equivalent) to a supplier

Is usually symbolized by a check or disbursement voucherdocument or data entry screen that summarizes the

information about the event (e.g date, dollar amount, supplierto whom cash was disbursed, employee who authorizedthe payment, acquisition or other event to which cashdisbursement applied, etc.)

Resource is typically cash (a type-level resourceusually alisting of cash accounts owned by the enterprise)

Internal agents are usually cashiers, accounts payable clerks,or other financing personnel

External agents are usually suppliers or vendors


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Disbursement Voucher


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Relational Tables Encompassing Cash

Disbursement Event


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Economic Increment Reversal Events Events in which previous economic increment events are

reversed or negated

Although similar in mechanics, such events are inherently

different from economic decrement events

Giving something back that you had hoped would satisfyyour needs, even though you will receive back what you

gave in exchange, is not the same as giving something up

in exchange for something you want more

Resources, Internal Agents, and External Agents are the

same as those for economic increment events


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Purchase Return Event

Economic event in which title (ownership) for goods previouslytransferred from a supplier to the enterprise are transferred

back from the enterprise to the supplier

Although a resource (or resource type) is decreased as a

result, the nature of purchase returns is different from other

economic decrement events. The substance of the event issuch that the original economic increment event is negated.

Thus we label such events as economic increment-reversal

events

Is usually symbolized by authorized request to return, packing

list, and debit memorandum documents or data entry screensthat summarize information about the event (e.g. date, what

quantities of which products were returned to supplier, dollar

amount, etc.)


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Request to Return


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Packing List


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Debit Memorandum


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Purchase Return Event


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Acquisition/Payment Process Relationships

Fulfillment relationships Between Purchase Requisition and Purchase Order

events

Between Purchase Orderand Purchase(or Rental orService Acquisition) events

Duality relationships Between Purchase (or Rental or Service Acquisition)

and Cash Disbursement (or Disbursement of BarteredGoods/Services) events

Reversal relationships Between Purchase and Purchase Return events

Participation relationships Between each event and each internal and external

agent


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Acquisition/Payment Process Relationships

Proposition relationships Between Purchase Requisition event and Inventory (or

Inventory Type or Service Type)

Reservation relationships Between Purchase Order, Rental Contract, or Service

Contract and Inventory (or Inventory Type or Service Type)

Also between Purchase Order, Rental Contract, or ServiceContract and Cash

Stock flow relationships Between Purchase (or Rental or Service Acquisition) and

Inventory (or Inventory Type or Service Type)

Between Purchase Return and Inventory (or InventoryType)

Between Cash and Cash Disbursement


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Resource Query Types

Detailed status information at one or more pointsin time for each resource instance

Detailed status information at one or more points

in time for only those resource instances meeting

specified criteria Summarized status information at one or more

points in time for all resource instances

Summarized status information at one or more

points in time for only those resource instancesmeeting specified criteria


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Acquisition Cycle Resource Queries A list of each inventory item or item type normally stocked by an

enterprise A list of all inventory items or item types that possess certain

characteristics

Quantity on hand of an inventory item type as of a specified date

Total cost value of inventory on hand as of a specified date

A list of all cash accounts owned by enterprise on a specified date Balance in a specific cash account as of a specified date

Total balance in all cash accounts as of a specified date

A list of general and administrative supply and service types forwhich the enterprise maintains descriptive data

A list of fixed assets owned by an enterprise Book value of a depreciable fixed asset owned by an enterprise

on a specified date

Average age of an enterprises machinery on a specified date


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Example Resource Tables

InventoryType

ItemID Description UnitOfMeasur

Standard Cost List Price

BIS1 Big Stuff Each $20.00 $50.00

HUS1 Huge Stuff Each $30.00 $70.00

LIS1 Little Stuff Box of 6 $36.00 $72.00

MIN1 Miniature Stuff Box of 24 $56.00 $110.00

TIS1 Tiny Stuff Box of 12 $48.00 $96.00

TTP12 Tiara Each $10.00 $25.00

Operating Assets

AssetTagID

Description AcquisitionDate

AcquisitionCost

AssetCategory

EstimatedLifeYrs

EstimatedSalvage

IRSListedProperty

OA1 Building-

4/1/2010 $200,000.00 Buildings 40 $20,000.00 No

OA10 Manager task chair 4/10/2010 $350.00 Furniture 7 $50.00 No

OA11 Task chair 4/10/2010 $175.00 Furniture 7 $25.00 NoOA12 Task chair 4/10/2010 $175.00 Furniture 7 $25.00 No

OA13 Task chair 4/10/2010 $175.00 Furniture 7 $25.00 No

OA14 Task chair 4/10/2010 $175.00 Furniture 7 $25.00 No

OA15 Toshiba tecra notebook 4/15/2010 $3,000.00 Computers 5 $300.00 Yes

OA16 Dell optima desktop 4/15/2010 $2,000.00 Computers 5 $200.00 Yes



OA19 Warehouse shelving 4/16/2010 $10,000.00 Fixtures 40 $0.00 No

OA2 Property 4/1/2010 $300,000.00 Land 0 $0.00 No

OA20 Fax machine 4/17/2010 $400.00 Communication

3 $0.00 YesOA3 Executive desk 4/10/2010 $2,000.00 Furniture 10 $200.00 No

OA4 Manager desk 4/10/2010 $1,500.00 Furniture 10 $100.00 No

OA5 Manager desk 4/10/2010 $1,500.00 Furniture 10 $100.00 No

OA6 Administrator desk 4/10/2010 $1,000.00 Furniture 10 $100.00 No

OA7 Administrator desk 4/10/2010 $1,000.00 Furniture 10 $100.00 No

OA8 Executive desk chair 4/10/2010 $500.00 Furniture 7 $50.00 No

OA9 Manager task chair 4/10/2010 $350.00 Furniture 7 $50.00 No

Cash

CashAccountID AccountType Location DateAccountEstablished

Ca123501 Checking 1st Local Bank Thursday, April 01, 2010Ca351235 Petty Onsite - Thursday, April 01, 2010

Ca351327 Petty Onsite - CEO Thursday, April 15, 2010

Ca789125 Savings 1st Local Bank Thursday, April 22, 2010

Ca987654 Imprest 1st Local Bank Thursday, April 01, 2010


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Query to list each operating assets

owned on a specific date

Q


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Query to list each operating assets

owned on a specific date


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Query to identify computers owned on a

specified date


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Event Query Types

Detailed information about each event instance e.g., what happened, when and where did it happen, etc.

Detailed information about each event instance that meetsspecified criteria

e.g. events of a specified type that occurred during aspecified time period or that occurred at a specified location

Summarized information for all instances of an event typefor a specified time period

e.g. total of the event instances during a specified timeperiod

Summarized information for only those instances of anevent type for a specified time period that meet specifiedcriteria

e.g. average dollar value of the event instances for aspecified location during a specified time period


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Example Event Tables

Purchase Requisition (Instigation) Event

PurchReqID Date

Maximum Budgetfor this purchase

DateNeeded SuperID

FKPurchAgentID

FKRecommendedSupplierID

FK

R17 4/22/2010 $30,000 5/2/2010 E5 E12 V7R18 5/5/2010 5/23/2010 E5 E12 V14

R19 5/6/2010 5/20/2010 E5 E12 V7

R20 5/15/2010 5/25/2010 E5 E12

R21 5/18/2010 5/26/2010 E5 E12 V7

Purchase Order (Mutual Commitment) Event

PurchaseOrderID

OrderDate DateNeeded DollarTotal PurchaseReqID

FK

PurchaseAgentID

FK

SupplierID

FK

PO16 4/24/2010 5/2/2010 $28,450.00 R17 E12 V7

PO17 5/5/2010 5/8/2010 R18 E12 V14

PO18 5/5/2010 5/12/2010 R18 E12 V90

PO19 5/6/2010 5/10/2010 R19 E12 V14PO20 5/6/2010 5/24/2010 R19 E12 V7

PO21 5/16/2010 5/24/2010 R20 E12 V14

Purchase (Economic Increment) Event

ReceivingReportID Date

DollarAmount

ReceivingClerkID

FK SupplierID

FKVendor Invoice# Invoice

AmountCash DisbID

FK

RR18 4/30/2010 $28,450.00 E111 V7 VI4167 $28,450.00 40

RR19 5/8/2010 $1,100.00 E111 V14 821536 $1,100.00

RR21 5/10/2010 $3,240.00 E111 V14 821983 $3,240.00

RR22 5/12/2010 $2,000.00 E111 V7 VI5213 $2,000.00

RR25 5/12/2010 $480.00 E111 V90 312353 $480.00

Cash Disbursement (Economic Decrement) Event

DisbVoucherID VoucherDate DollarAmount CheckNbr CashAcctIDFK

APClerkIDFK

PayeeIDFK

39 5/15/2010 $746.57 41234 Ca123501 E36 E23

40 5/25/2010 $28,450.00 41235 Ca123501 E36 V7

41 5/29/2010 $398.12 41236 Ca123501 E36 E41

Purchase Return (Economic Increment Reversal) Event

PurchaseReturnID Date

DollarAmount

PackingSlip#

DebitMemo#

ReceivingReportID

FKSupplierID

FK

DeptSuperID

FKShippingClerkID

FK

PR3 5/17/2010 $480.00 22 3 RR25 V90 E5 E41


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Agent Queries

Detailed status information at one or morepoints in time for each agent instance

Detailed status information at one or morepoints in time for only those agent

instances meeting specified criteria Summarized status information at one or

more points in time for all agent instances

Summarized status information at one or

more points in time for only those agentinstances meeting specified criteria


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Acquisition Cycle Agent Queries

A list of all purchase agents, accounts payableclerks, inventory clerks, or supervisors for an

enterprise

A list of employees that possess certain

characteristics (e.g. all accounts payable clerkswho have a specified minimum fidelity bond

A list of employees that live in a specified city or

state

A list of all employee names and telephonenumbers for an emergency phone tree


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Example Agent Tables

Supplier (External Agent)

SupplierID Name Address Telephone PerformanceRatingV7 Joes Favorite Vendor 89056 Ransom Hwy. 555-7655 Excellent

V14 Reliable Rudys 34125 Michigan Ave. 555-1199 Very Good

V90 Trinas Trinkets 1612 Myway Rd. 555-2424 Very Good

Shipping Clerk (Internal Agent)

ShippingClerkID Name Address Telephone DateOfBirthE41 Amy Milano 8892 Eddy Ave. 555-9557 January 3, 1964

Department Supervisor (Internal Agent)

DeptSupervisorID Name Address Telephone DateOfBirth

E5 Patrick Wellesley 53125 Fenton Dr. 555-1112 March 4, 1958

Accounts Payable Clerk (Internal Agent)

APClerkID Name Address Telephone DateOfBirth

E36 Diane Bowersox 9115 Wolfgang Ct. 555-7244 September 15, 1963

Receiving Clerk (Internal Agent)

ClerkID Name Address Telephone DateOfBirth

E247 Kenneth Barki 4312 Monticello Dr. 556-4891 April 14, 1945

E251 Rita Barki 4312 Monticello Dr. 556-4891 May 22, 1948

Identify Suppliers with Performance


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Identify Suppliers with Performance

Rating of Very Good

Which table(s) do we need? Which relational algebraoperators apply?

What is SQL statement?

Select

SELECT *FROM Supplier

WHERE PerformanceRating=Very Good;

What is Access QBE?

What is the result?

Supplier (External Agent)

SupplierID Name Address Telephone PerformanceRating

V7 Joes Favorite Vendor 89056 Ransom Hwy. 555-7655 Excellent

V14 Reliable Rudys 34125 Michigan Ave. 555-1199 Very Good

V90 Trinas Trinkets 1612 Myway Rd. 555-2424 Very Good


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Duality Relationship Query Types

Identification as to whether a specified exchange iscompleted

Identification of completed exchanges for a specified time

period

Identification of incomplete exchanges for a specified time

period Calculation of the amount of claims, e.g. prepaid expenses,

payables, unearned revenues, or receivables, either in total

or for a specified exchange event

Calculation of the total or average length of the timing

difference(s) between the events involved in one or moreexchanges


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Acquisition Cycle Duality Queries

Calculation of the outstanding payablebalance for a purchase

Calculation of total accounts payable at a

point in time

Calculation of prepaid expenses at a point

in time

Aging of accounts payable

Calculation of the average number of daysit takes to pay vendor invoices

Example Duality & Reversal


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Receiving

ReportID Date

Dollar

Amount

Receiving

ClerkIDFK SupplierIDFK

Vendor

Invoice#

Invoice

Amount

Cash

DisbIDFK

RR18 4/30/2010 $28,450.00 E111 V7 VI4167 $28,450.00 40

RR19 5/8/2010 $1,100.00 E111 V14 821536 $1,100.00

RR21 5/10/2010 $3,240.00 E111 V14 821983 $3,240.00

RR22 5/12/2010 $2,000.00 E111 V7 VI5213 $2,000.00

RR25 5/12/2010 $480.00 E111 V90 312353 $480.00

Example Duality & Reversal

Relationship Tables

Cash Disbursement (Economic Decrement) Event

DisbVoucherID VoucherDate DollarAmount CheckNbr CashAcctIDFK APClerkIDFK PayeeIDFK

39 5/15/2010 $746.57 41234 Ca123501 E36 E23

40 5/25/2010 $28,450.00 41235 Ca123501 E36 V7

41 5/29/2010 $398.12 41236 Ca123501 E36 E41

Purchase Return (Economic Increment Reversal) EventPurchaseReturnID Date

DollarAmount

PackingSlip#

DebitMemo#

ReceivingReportID

FK SupplierID

FK

DeptSuperID

FKShippingClerkID

FK

PR3 5/17/2010 $480.00 22 3 RR25 V90 E5 E41


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Querying for Accounts Payable

Conceptually

Dollar value of acquisitions of goods and services (except employee labor)not yet paid in full

Practically

Total of acquisitions through balance sheet date minus total of cash

disbursements through balance sheet date that applied to acquisitions.

Also minus purchase returns/discounts through balance sheet date.

MUST include ONLY ending date constraint (balance sheet items reflect

cumulative data from beginning of company through balance sheet date).

Use acquisition date to determine which acquisitions to include.

Use cash disbursement date and duality relationships to determine which

cash disbursements to include. Be sure to aggregate cash disbursements

that apply to the same purchase before subtracting from purchase amount

Note: AcquisitionsCash disbursements from Vendors is not acceptable as it is

theoretically less sound than using the duality relationships

Likely need for outer join and Nz function in Access (for acquisitions with

no matching cash disbursements)


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Accounts Payable Query Steps


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Accounts Payable Query Steps with Nz


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Accounts Payable Query Steps with Nz


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Stockflow Relationship Query Types

What resources or resource types wereincreased or decreased by an economic event?

What quantity of a resource or resource typewas increased or decreased by an economicevent?

What dollar value of a resource or resource typewas increased or decreased by an economicevent?

When did an event increase or decrease aspecific resource or resource type?

Where did an event increase or decrease aspecific resource or resource type?


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Acquisition Cycle Stockflow Queries

Which inventory types were increased by a specific purchase event?

What quantity of each inventory type was increased by a specificpurchase event?

Which inventory types were decreased by a purchase return event?

What quantity of each inventory type was decreased by a specificpurchase return event?

What unit cost was charged for an inventory type on a specificpurchase event?

What unit cost was granted as credit for an inventory type on aspecific purchase return event?

What was the total dollar value of purchases for a specified timeperiod? (Note: if total purchase dollar amount is stored in thepurchase event table, then it is not necessary to use the stockflowrelationship to meet this information need)

What is the average dollar value of purchases of a specified

inventory type for a specified time period?

Querying for Inventory


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Querying for Inventory

Weighted Average Unit Cost


ReceivingReportID Date

DollarAmount

ReceivingClerkID

FK SupplierID

FKVendorInvoice#

InvoiceAmount

CashDisbID

FK

RR18 4/30/2010 $28,450.00 E111 V7 VI4167 $28,450.00 40

RR19 5/8/2010 $1,100.00 E111 V14 821536 $1,100.00

RR21 5/10/2010 $3,240.00 E111 V14 821983 $3,240.00

RR22 5/12/2010 $2,000.00 E111 V7 VI5213 $2,000.00

RR25 5/12/2010 $480.00 E111 V90 312353 $480.00

Stockflow1 Relationship (PurchaseInventory Type)

PurchaseID ItemID PurchaseQuantity ActualUnitCost

RR18 BIS1 100 $20.00

RR18 LIS1 200 $35.50

RR18 HUS1 150 $29.00

RR18 TIS1 300 $50.00

RR19 MIN1 20 $55.00

RR21 MIN1 60 $54.00

RR22 BIS1 100 $20.00

RR25 TTP12 48 $10.00

InventoryType









Tables to consider

Querying for Inventory Weighted


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Average Unit Cost



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Average Unit Cost



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Average Unit Cost


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Fulfillment Relationship Query Types

Identification of unfulfilled commitments or instigation

events

Identification of fulfilled commitments or instigation events

Identification of commitment events that were not

preceded by instigation events, or identification of

economic events that were not preceded by commitment

events

Calculation of length of time between instigation and

commitment events or between commitment and

economic events

Identification of causes of commitments and/or of

economic events

Identification of results of instigations and/or of

commitment events


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Acquisition Cycle Fulfillment Queries

Identification of unfilled purchase orders Identification of filled purchase requisitions

(i.e., those purchase requisitions that

resulted in purchase orders)

Calculation of average number of days the

enterprise takes to fill purchase requisitions

for a given time period

Identify the purchase order thatcorresponds to a purchase

Calculation of Average Number of Days


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to Fulfill Purchase Requisition


PurchReqID Date MaxBudget

DateNeeded SupervisorID PurchaseAgentID RecommendedSupplier

R17 4/22/2010 $30,000.00 5/2/2010 E5 E12 V7

R18 5/5/2010 $1,400.00 5/23/2010 E5 E12 V14

R19 5/6/2010 $5,500.00 5/20/2010 E5 E12 V7

R20 5/15/2010 $200.00 5/25/2010 E5 E12

R21 5/18/2010 $7,500.00 5/26/2010 E5 E12 V7

Purchase Order

PurchaseOrderID OrderDate DateNeeded DollarTotal PurchaseReqID PurchAgentID SupplierID

PO16 4/24/2010 5/2/2010 $28,450.00 R17 E12 V7

PO17 5/5/2010 5/8/2010 $1,100.00 R18 E12 V14

PO18 5/5/2010 5/12/2010 $200.00 R18 E12 V90

PO19 5/6/2010 5/10/2010 $3,240.00 R19 E12 V14

PO20 5/6/2010 5/24/2010 $2,000.00 R19 E12 V7

PO21 5/16/2010 5/24/2010 $220.00 R20 E12 V14

Tables to consider



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to Fulfill Purchase Requisition


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Proposition Relationship Query Types

What resources or resource types does theinstigation event propose to increase or decrease?

What quantity of a resource or resource type is the

proposed increase or decrease for an instigation

event? When did an instigation event propose to increase

or decrease a specific resource or resource type?


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Acquisition Cycle Proposition Queries

Which inventory types were identified as neededin a purchase requisition event?

What unit cost was estimated for an inventory

type in a specific purchase requisition event?

How many different times has a specifiedinventory type been requisitioned during a time

period?

How many different types of inventory were

requisitioned in a specific purchase requisitionevent?

Query to calculate number of times an item has


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been requisitioned during a time period

Tables to consider

PropositionPurchaseRequisitionInventoryType

PurchRequistionID ItemID QuantityNeeded EstimatedUnitCost

R17 BIS1 100 $20.00R17 HUS1 150 $30.00

R17 LIS1 200 $36.00

R17 TIS1 300 $48.00

R18 MIN1 20 $56.00

R18 TTP12 20 $10.00

R19 BIS1 100 $20.00

R19 MIN1 60 $56.00

R20 TTP12 20 $10.00

R21 LIS1 200 $36.00


PurchReqID Date MaxBudget

DateNeeded SupervisorID PurchaseAgentID RecommendedSupplierR17 4/22/2010 $30,000.00 5/2/2010 E5 E12 V7

R18 5/5/2010 $1,400.00 5/23/2010 E5 E12 V14

R19 5/6/2010 $5,500.00 5/20/2010 E5 E12 V7

R20 5/15/2010 $200.00 5/25/2010 E5 E12

R21 5/18/2010 $7,500.00 5/26/2010 E5 E12 V7

InventoryType











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been requisitioned during a time period


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Reservation Relationship Query Types

What resources or resource types is a commitmentevent agreeing to increase or decrease?

What quantity of a resource or resource type is acommitment event agreeing to increase ordecrease?

What dollar value of a resource or resource type isa commitment event agreeing to increase ordecrease?

When did an event commit to increase or decreasea specific resource or resource type?

Where did an event commit to increase ordecrease a specific resource or resource type?


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Acquisition Cycle Reservation Queries

Which inventory types does a specific commitment event

agree to increase?

What quantity of each inventory type does a specific

commitment event agree to increase?

What unit cost was quoted for each inventory type in a

specific commitment event?

What was the total dollar value of purchase orders for a

specified time period? (Note: if total dollar amount is stored

in the purchase order event table, then it is not necessary to

use the reservation relationship to meet this information

need)

What is the average dollar value of purchase orders of a

specified inventory type for a specified time period?


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Participation Relationship Query Types

Which agent(s) participated in a specified event? How many events of a specified type has a

specified agent participated?

What is the total dollar value of events of a

specified type in which a specified agent hasparticipated for a specified time period?

When did a specified event in which a specified

agent participated occur?

Where did a specified event in which a specifiedagent participated occur?


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Acquisition Cycle Participation Queries

From which supplier was a specific purchase made? By which purchase agent was a specific purchase order

placed?

How many purchase orders did a specified purchase agentmake during a specified time period?

What is the total (or average) dollar amount of purchasesmade by each purchasing agent during a specified timeperiod?

When was a specified purchase received, and by whichreceiving clerk (include clerks id, name, and telephonenumber)?

To which supplier have the most purchase returns beenmade?

Query for date and receiving clerk


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associated with specific purchase

Tables to consider

PurchaseReceivingReportID Date DollarAmount ReceivingClerkID SupplierID VendorInvoice

InvoiceAmount CashDis

RR18 4/30/2010 $28,450.00 E247 V7 VI4167 $28,450.00 40

RR19 5/8/2010 $1,100.00 E247 V14 821536 $1,100.00

RR21 5/10/2010 $3,240.00 E247 V14 821983 $3,240.00

RR22 5/12/2010 $2,000.00 E251 V7 VI5213 $2,000.00

RR25 5/12/2010 $480.00 E247 V90 312353 $480.00

Receiving Clerk

ReceivingClerkID Name Address Telephone DateOfBirth

E247 Kenneth Barki 4312 556-4891 4/14/1945

E251 Rita Barki 4312 556-4891 5/22/1948

Query for date and receiving clerk


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associated with specific purchase

Multiple-Relationship Acquisition


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Cycle Queries

Which purchase orders have been partially filled?

requires stockflow, reservation, and fulfillment-

purchaseorder-purchase relationships

What is the total dollar value of accounts payable

for a specified supplier at a point in time?

requires duality, participation-supplier-purchase, andparticipation-supplier-cash disbursement relationships

On which requisitions has a specified vendor

been recommended as the recommended

supplier? requires proposition and participation-

purchaserequisition-supplier relationships

Multiple-Relationship Acquisition


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Cycle Queries

Which purchase agent ordered a specifiedinventory type from a specified supplier? requires reservation, participation-supplier-

purchaseorder, and participation-purchaseagent-purchaseorder relationships

What is the total dollar amount ofpurchases of a specified inventory typethat have been made from suppliers in aspecified region?

requires stockflow-purchase-inventory andparticipation-supplier-purchase relationships

Accounts Payable per Supplier


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Tables to consider

PurchaseReceivingReportID Date DollarAmount ReceivingClerkID SupplierID VendorInvoice

InvoiceAmount CashDis

RR18 4/30/2010 $28,450.00 E247 V7 VI4167 $28,450.00 40

RR19 5/8/2010 $1,100.00 E247 V14 821536 $1,100.00

RR21 5/10/2010 $3,240.00 E247 V14 821983 $3,240.00

RR22 5/12/2010 $2,000.00 E251 V7 VI5213 $2,000.00

RR25 5/12/2010 $480.00 E247 V90 312353 $480.00

Cash DisbursementDisbVoucherID VoucherDate DollarAmount CheckNumber CashAccountI

APClerkID PayeeID

39 5/15/2010 $746.57 41234 Ca123501 E36 E23

40 5/25/2010 $28,450.00 41235 Ca123501 E36 V7

41 5/29/2010 $398.12 41236 Ca123501 E36 E41

Purchase Return

PurchReturnID

Date DollarAmount

PackingSlip#

DebitMemo#

ReceivingReport#

SupplierID DeptSupervisorID

ShippingClerkID

PR3 5/17/201

$480.00 22 3 RR25 V90 E5 E41



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Constrain

purchase date

and sum

purchase dollar

amount for

each supplier



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Join purchase

and cash

disbursement

tables and

constrain cash

disbursement

date



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Sum the cash disbursements by supplier



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Join purchaseand purchase

return tables;

Constrain

purchase return

date



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Sum purchase returns by supplier



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Combine purchases

and purchasereturns by supplier to

get unreturned

purchases



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Combine unreturned purchases and cash disbursements by supplier

to get unpaid purchases

Result for May 31, 2010

S


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Summary

We discussed the acquisition/payment process and how it

fits in at the value system and value chain levels We discussed the extended REA pattern at the business

process level

We examined documents typically used to representevents and discussed related resources and agents

We examined examples of relational database tables forthe acquisition cycle and discussed data input into thosetables

We systematically discussed types of queries for theacquisition/payment process that may be needed tosupport decision-makers in various functional areas

We provided selected examples of queries of varioustypes

ENTERPRISE INFORMATIONSYSTEMS


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A PATTERN BASED APPROACH

Chapter 9

End of Chapter

Documents

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