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Solutions manual for Accounting Information Systems Controls and Processes 1st Edition by Turner Weickgenannt

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Concept Check 1. d 2. c 3. b 4. a 5. b 6. b 7. c 8. c 9. c 10. b 11. d 12. a

Discussion Questions 13. (SO 1) What is the relationship between business processes and the accounting

information system? As the systematic steps are undertaken within a business processes, the corresponding data generated must be captured and recorded by the accounting information system.

14. (SO 1) Why is it sometimes necessary to change business processes when IT

systems are applied to business processes? When IT systems are applied to business processes, some of the detailed transaction data may no longer be taken from paper-based source documents, and manual processing may no longer be needed to summarize and post that data. Accordingly, some of the related manual

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steps within the business process can be eliminated or changed. 15. (SO 2) Are manual systems and processes completely outdated? No, manual

systems and business processes are not completely outdated. Manual records may still be involved in the business processes of even the largest and most sophisticated accounting information systems.

16. (SO 2) What is the purpose of source documents? Source documents capture the

key data of a transaction, including date, purpose, entity, quantities, and dollar amounts.

17. (SO 2) What are some examples of turnaround documents that you have seen? An

example of a turnaround document is a credit card statement, where the statement itself (as received in the mail by the credit card holder) represents the output of the accounting information system of the credit card company. When the credit card holder returns the top portion of the statement with his or her payment, it then becomes an input to the company’s cash collection process.

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18. (SO 2) Why would the training of employees be an impediment to updating legacy systems? One of the advantages of legacy systems is that they are well supported and understood by existing personnel who are already trained to use the system. Since those legacy systems are not generally based on user-friendly interfaces and they tend to be use software written in older computer languages, there is likely to be a significant investment of time and human resources required to maintain the system. In addition, legacy systems are often difficult to modify. Employees may be reluctant to forego their investment or to commit additional time in support of an updated system that becomes more challenging to maintain.

1. 19. (SO 2) Why is it true that the accounting software in and of itself is not the entire

accounting information system? The accounting software is not the entire accounting information system; rather, it is a tool that supports the organization’s unique business processes. The software must often be customized to meet the needs of the organization and to integrate well with the manner in which transactions are processed. The human resources and/or manual records and documents that are part of the business processes are also an integral part of the accounting information system.

20. (SO 2) How is integration across business processes different between legacy systems and modern, integrated systems? Integration across business processes within a legacy system is extremely challenging and costly, as those systems are usually not based on user-friendly interfaces that are difficult to modify. It is also difficult to find programmers to perform such tasks. The result is that organizations which integrate business processes between legacy systems typically must resort to enhancements to their existing software or bridging their existing software to new systems or interfaces. On the other hand, modern, integrated systems are based on a single software system that integrates many or all of the business processes within the organization, thus eliminating the coordination and updating efforts required by the older systems.

21. (SO 3) Why do you think there are different market segments for accounting

software? There are different market segments for accounting software to support the different needs of organizations depending on their size and the complexities of their business processes.

22. (SO 3) How would accounting software requirements for large corporations differ

from requirements for small companies? Larger companies tend to need more power and functionality from their software systems because of their size and the complexities of their business processes. This may especially be true of large, multinational corporations which need to integrate business processes located all around the globe. Small companies are not likely to need such extensive power and functionality from their systems.

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23. (SO 3) What are some of the differences between ERP systems and accounting software for small companies? ERP systems are multimodule software systems designed to manage all aspects of an enterprise. The modules (financials, sales, purchasing, inventory management, manufacturing, and human resource) are based on a relational database system that provides extensive set-up options to facilitate customization to specific business needs. Thus, the modules work together to provide a consistent user interface. These systems are also extremely powerful and flexible. Many of the software systems in the small and mid market categories are not true ERP systems with fully integrated modules; however, these systems assimilate many of the features of ERP systems.

24. (SO 3) Why would accounting software development companies be interested in

expanding their software products into other market segments? Software development companies and software vendors often attempt to increase the appeal of their software products to more than one market segment when the features of their products may fit the needs of different sized organizations. In addition, there is a trend toward increasing the functionality of existing systems to offer increased flexibility and functionality to meet such diverse needs. Since business organizations make considerable investments in the software products that comprise their accounting information systems, it is not surprising that there is much competition among the companies that provide these systems.

25. (SO 4) Given the business and accounting environment today, do you think it is still

important to understand the manual input of accounting data? Manual input of data is still important to understand in today’s accounting environment. Many business organizations still use some manual processes for reading source documents and keying the relevant information into the accounting information system. Even high- tech point of sale systems require manual processes to input the accounting data contained on bar codes.

26. (SO 4) What are the advantages to using some form of IT systems for input, rather

than manual input? Using IT systems for input has the advantages of reducing the time, cost, and errors that tend to occur with manual data input.

27. (SO 4) Why would errors be reduced if a company switched input methods from

manual keying of source documents to a bar code system? With manual input, human efforts are required to write on the source documents and to manually key in the data. Errors tend to occur with such a system. On the other hand, the manual steps of writing and keying are eliminated when using a bar code system, thus reducing the likelihood of error.

28. (SO 5) In general, what types of transactions are well suited to batch processing?

Batch processing is best suited to applications having large volumes of similar transactions that can be processed at regular intervals, such as payroll.

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29. (SO 5) Why might the time lag involved in batch processing make it unsuitable for some types of transaction processing? By necessity, batch systems involve a time lag while all transactions in the batch are collected. This means that available information in files will not always be current, as it would be in real-time systems. Therefore, when constantly up-to-date information is needed by users on a timely basis, batch processing is likely to be unsuitable for transaction processing.

30. (SO 5) How would real-time processing provide a benefit to managers overseeing

business processes? Real-time processing is beneficial for business managers because it provides for system checks for input errors. Therefore, errors can be corrected immediately, thus increasing the quality of the information for which the manager is held accountable. In addition, real-time systems enhance the efficiency of information availability.

31. (SO 6) How do internal reports differ from external reports? Although internal and

external reports are both forms of output from an accounting information system, they have different purposes. Internal reports provide feedback to managers to assist them in running the business processes under their control. On the other hand, external reports (such as the financial statements) are used by external parties to provide information about the business organization.

32. (SO 6) What are some examples of outputs generated for trading partners?

Invoices and account statements are examples of outputs generated for customers; whereas checks and remittance advices are examples of outputs sent to vendors.

33. (SO 6) Why might it be important to have internal documents produced as an output

of the accounting information system? It is important to produce internal documents as an output of an accounting information system because internal documents provide feedback needed by managers assist them in running the business processes under their control. These internal documents can be customized to allow a manger to “drill down” into the details of the process being managed.

34. (SO 7) How does documenting a system through a pictorial representation offer

benefits? A pictorial representation of an accounting information system is beneficial because it provides a concise and complete way for accountants to analyze and understand the procedures, processes, and the underlying systems that capture and record the accounting data.

35. (SO 8) How does client-server computing divide the processing load between the

client and server? In client-server computing, the processing load is assigned to either the server or the client on the basis of which one can handle each task most efficiently. The server is more efficient in managing large databases, extracting data from databases, and running high-volume transaction processing software applications. The client is more efficient at manipulating subsets of data and presenting data to users in a user-friendly, graphical-interface environment.

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36. (SO 8) Why do you think the client computer may be a better computer platform for presentation of data? The client computer is better for presentation of data because it manipulates subsets of data without being bogged down by the processing load of the entire data set. In addition, the client computer maintains presentation software in a user-friendly format for reporting purposes.

Brief Exercises 37. (SO 1) Think about your most recent appointment at the dentist’s office. Describe

the business process that affected you as the patient/customer. In addition, describe the administrative and accounting processes that are likely to support this business.

As a patient, you would experience the revenue processes as you receive services from the hygienist and dentist. You would also be affected by the billing and collections processes when you receive an invoice for services rendered and submit payment for those services.

The dental office would need to have specific steps in place for recording the services provided to each patient so that they can be properly billed and reported. These steps may be very detailed, especially in instances where patient fees must be allocated between dental insurance companies and the patients themselves. There would also need to processes in place for purchasing, as a dentist’s office is expected to make regular purchases of supplies as well as to handle the other operating costs of the business. Payroll processes would also be needed to account for the time and pay of each employee in the dentist’s office, and fixed asset processes would be needed to support the investments in and depreciation of office furniture and equipment, fixtures, and dental equipment. Finally, it is possible that the business may have administrative processes in place to handle investment, borrowing, and capital transactions. Once these transactions are recorded, the business must have processes in place to post the related data to the general ledger and summarize it in a manner that facilitates the preparation of financial statements and other accounting reports.

38. (SO 2) Describe the purpose of each of the following parts of a manual system:

a. source document – captures the key data of a transaction, including the date, purpose, entity, quantities, and dollar amounts.

b. turnaround document – provides a connection between different parts of the accounting system by serving as the output of one system and the input to another system in a subsequent transaction.

c. general ledger – provides details for the entire set of accounts used in the organization’s accounting systems.

d. general journal – captures the original transactions for non routine transactions, adjusting entries, and closing entries.

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e. special journal – captures original transactions for routine transactions such as sales, purchased, payroll, cash receipts, and cash disbursements.

f. subsidiary ledger – maintains detailed information regarding routine transactions, with an account established for each entity.

39. (SO 2) Consider the accounting information system in place at an organization

where you have worked. Do you think that it was a manual system, legacy system, or an integrated IT system? Describe one or two characteristics of that accounting information system that lead you to your conclusion.

Student responses are likely to vary greatly, as they may refer to any work experience. Characteristics of manual systems may include paper-based documents and records, and manual processes performed by humans. Characteristics of legacy systems may include older technology including a mainframe computer and the use of software languages such as COBOL, RPG, Basic, and PL1. Characteristics of an integrated IT system include powerful, technologically advanced computer systems with Internet interfaces. They are typically marked by efficiencies in terms of limited paperwork and user-friendly interfaces.

40. (SO 2) Suppose that a company wants to upgrade its legacy system, but cannot afford to completely replace it. Describe two approaches that can be used.

One approach to updating a legacy system is to use screen scrapers, or frontware, which add modern, user-friendly screen interfaces to an existing system. Another approach is to bridge the legacy system to new hardware and software using enterprise application integration, or EAI.

41. (SO 3, SO 5) Consider the real world example of Hobie Cat Company presented in this chapter.

a. Use Exhibits 2-2 and 2-3 to help you determine the approximate range of Hobie

Cat’s annual revenues. Since Hobie Cat’s ERP system falls in the Mid market segment, the company’s revenues must be between $250,000 and $10 million.

b. What are the advantages Hobie Cat likely realized as a result of having real-time

data available? The advantages to real-time data processing include:

reduced errors, since the system checks for input errors and corrects any errors immediately

more timely information

constantly up-to-date data files

integrated business processes into a single database so that a single system can be achieved.

42. (SO 4) Using IT systems to input accounting data can reduce costs, time, and errors. Give an example showing how you think IT systems can lead to these reductions

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(cost, time, and errors). Student responses may vary. The responses below apply to the savings a company would be expected to realize upon implementation of a bar code system as a method of inputting data.

Using IT systems to input data can help reduce costs, such as when bar code systems at a self-checkout line eliminate the human resource costs of using a checkout clerk.

Using IT systems to input data can help save time, such as when bar code systems at a checkout line can reduce the checkout time to a fraction of the time required to manually record the transaction. This is because it eliminates the manual processes involved in writing data on a source document and later keying the data into the software system.

Using IT systems to input data can help reduce errors, such as when bar code systems eliminate the duplicate manual processes involved in writing data on a source document and later keying the data into the software system.

43. (SO 6) Identify whether the following reports would be categorized as trading partner documents, internal documents, internal reports, or external reports:

a. daily cash receipts listing – internal document b. accounts receivable aging – internal report c. wire transfer of funds to a vendor – trading partner document d. customer price list – trading partner document e. general ledger – internal report f. statement of cash flows – external report g. sales invoice – trading partner document h. production schedule – internal document i. customer address list – internal document j. payroll journal – internal report

44. (SO 6) Which type of accounting information system reports would likely be

prepared most frequently by financial accountants? By managerial accountants? Financial accounts are most likely to prepare external reports (such as financial statements and other reports provided to external users of the company’s accounting information); whereas managerial accountants are most likely to prepare internal reports (such as journals and other reports that provide feedback to managers about their areas of responsibility).

45. (SO 7) Identify which of the cardinal relationships apply, form the following:

a. component part – product One to many b. customer – product Many to many c. employee ID badge – employee One to one d. employee – supervisor One to many

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e. vendor – check One to many 46. (SO 8) Differentiate distributed presentation computing and distributed applications

computing. Which of these forms of client server computing is most likely to be used by the sales clerks at a regional sales office for a large retail organization?

Distributed presentation computing involves a client PC’s manipulation of a subset of data for purposes of presentation. It uses spreadsheet, graphing software, mapping software, or other presentation software for this purpose. Distributed applications computing involves the client PC’s participation in application processing, including the updating or changing of data that resides on the server. Distributed applications computing is most likely to be used by sales clerks in a regional sales office to process the sales data from the various retail locations.

Problems

47. (SO 2) Suppose that a large company is considering replacing a legacy system that

is nearing obsolescence. Describe any aspects of this decision that the company should consider.

When considering whether or not to replace a legacy system, a company should conduct a cost-benefit analysis. A business organization may decide to maintain a legacy system if it determines that the replacement costs would be too high. In such cases, the organization would likely place strong emphasis on the advantages of its legacy system, including its degree of customization and the extent of historical data that it contains which would be difficult to integrate into a new system. On the other hand, if the organization decided to replace its legacy system, it is likely that its reasons included such things as difficulty in supporting the older hardware, software, and programming language of its legacy system, difficulty in integrating the legacy system with newer business applications, and lack of user-friendly interfaces and supporting documentation from the legacy system.

48. (SO 1, SO 7) Visit the campus bookstore at your university. From what you see happening at the bookstore, try to draw a process map of how the processes at that store serve students, the customers.

Refer to the separate Microsoft Excel file “Chapter 2 Solutions Pictorial Representations.xls

49. (SO 3) Look at Exhibit 2-3 and pick one accounting software product from the midmarket segment and one software product from the tier 1 ERP segment. Using those brand names of software, search the Internet for information about those products. Based on your investigation, what are the differences between the two software products you chose? (Hint: To begin your search, you might try examining

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the following web sites. www.accounting-software 411.com , www.findaccountingsoftware.com, and www.2020software.com)

Student responses are likely to vary greatly, depending upon the software brands selected. However, the modules within the midmarket products may not be fully integrated or may be less complex than the tier 1 ERP systems.

50. (SO 4) Using an Internet search engine, search for the term “RFID.” From the results you find, describe how RFID will be used as an input method.

RFID stands for radio-frequency identification. RFID technology helps companies identify and manage large lots of goods, typically received and stored in cartons or on skids. The cartons or skids include tags that are encoded with identifying information about the items, their supplier, and their purchase transaction. RFID is used as an input method whereby the tags can be instantly read and recorded by using antennae or battery-operated transmitters and radio waves.

51. (SO 8) Using an Internet search engine, search for the terms “client-server” and “scalable.” From the results you find, explain why client-server systems are scalable.

Scalable systems have the ability to handle growth or increased capabilities. Thus, client-server systems are deemed to be scalable because of the manner in which tasks are divided. Since client PCs normally accomplish local processing tasks, additional client PCs could be added to the network to handle new or growing subsets of data from the server.

Cases

52. Pictorial representations of a drive-through window at a fast food chain.

Student responses are likely to vary, but may be similar to those shown in the Microsoft Excel file “Chapter 2 Solutions Pictorial Representations.xls

53. Pictorial representations of a college’s parking services processes.

Student responses are likely to vary, but may be similar to those shown in the Microsoft Excel file “Chapter 2 Solutions Pictorial Representations.xls

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Chapter 2 - Foundational Concepts Of The AIS

Instructors Manual

Interrelationship Of Business Processes And The AIS. Business processes

occur so that organizations may serve its customers. As the many business processes occur, all of the data generated must be collected and processed by the accounting information system. The accounting information system collects detailed information from these business processes. In manual systems, this collection is through the use of source documents, special journals, and subsidiary ledgers. As this detailed information is processed, it is summarized in the general ledger accounts. Whether the system is manual or computerized, it must collect the data from business processes, summarize and process this data, and provide outputs.

Types Of Accounting Information Systems. o Manual Systems are those systems that use manual record keeping

processes and paper-based records. Usually, that includes only very small organizations. These manual systems use paper-based documents such as source documents, turnaround documents, general ledger, general journal, special journals, subsidiary ledgers, and employees follow certain processes to record transactions in the documents. Even in a computerized system, some of these manual steps may still occur. For example, a human may write information on a source document before it is entered into an IT system.

o Legacy Systems. Legacy systems are older IT systems that may have been in place within the organization for many years. These are usually systems based on mainframe host computers and older technology. They were written in computer languages such as COBOL or Basic. In 2002, an estimate indicated that at least 80% of organizations had legacy systems. There are both advantages and disadvantages to legacy systems. When the benefits of newer systems outweigh the advantages of the legacy systems, many companies replace the legacy systems with newer technology. As an alternative to replacing legacy systems, some organizations may just enhance them. Two methods of enhancing legacy systems are screen scrapers and enterprise application integration.

o Modern, Integrated Systems. These systems are based on current technology and fall into three categories. These systems are purchased software, rather than software developed internally. Purchased software has the advantages of lower costs, fewer bugs, and a shorter implementation time.

Accounting Software Market Segments. Accounting software can be categorized according to the type of enterprise is its intended market. The four categories of accounting software types are small companies, midmarket companies, beginning ERP, and high end or tier 1 ERP. Small company accounting software is intended for companies with revenue of approximately $250,000 or less. Midmarket accounting software is targeted to companies with revenue between $250,000 and

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$10 million. Beginning ERP is intended for companies with revenue between $10 and $100 million. Tier 1 ERP systems are targeted to companies with revenue in excess of $100 million. Software companies are consistently trying to expand the market they serve and this leads to software vendors trying to serve the category above or below them. Thus, a single software system might be targeted to companies slightly larger or smaller than the original, intended market.

Input Methods For AIS. Almost all business processes generate some type of accounting data. There are many different types of processes, and many different ways to capture the data from these processes.

o Source Documents And Keying. Transaction data is often captured on pre-printed, sequentially numbered source documents. From this source document, the data is keyed (typed in) into an IT system. This process is time consuming and error prone. Many companies have replaced this source document and keying approach with newer technology.

o Bar Codes. Bar codes are symbols on product packaging. You see these bar codes on products you buy at department stores. Bar codes can be used with a bar code reader to input inventory movement and employee time.

o Point Of Sale Systems. The most well-known use of bar codes is in Point of Sale Systems. The Universal Product Code on products is read by a bar code scanner at the cash register. Many retail establishments use point of sale systems.

o Electronic Data Interchange. The intercompany, computer-to-computer transfer of business documents in a standard format. EDI permits the electronic transmission of purchase orders, invoices, and payments between trading partners.

o E-Business And E-Commerce. E-business includes all forms of online electronic business transactions and processing, whereas, e-commerce is online buying and selling by consumers. When data is exchanged electronically, much of the manual processing is eliminated, thereby reducing time, cost, and errors.

Processing Methods o Batch Processing. In batch processing, all similar transactions within a

specified time are grouped together and processed as a batch. This method is efficient for large volumes of like transactions; it has a better audit trail and is easier to control, the hardware and software systems can be cheaper and simpler, and personnel become specialized. However, data duplication is likely; it is not well suited to changes in only a few records; maintenance of files can be more time consuming; integration across the enterprise is more difficult; and there is an inherent time lag.

o Online And Real Time Processing. Each transaction is entered and processed as it occurs, in real-time. This eliminates the time lag inherent in batch systems; input errors can be checked as data is entered; files are updated in real-time, and integration of business processes is easier. However, the hardware and software is more expensive and complex; there may be more susceptibility to unauthorized access; ad they are more difficult to audit.

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Outputs Of The AIS. There are many kinds of outputs and only a few are described here. Some outputs are documents exchanged with trading partners such as invoices, statements, or purchase orders. Some are internal documents such as credit memorandums. Some outputs are in the form of reports for either internal or external users. These could include financial statements or aged receivables reports. Internal reports might be printed, viewed on a screen, or customizable queries.

Documenting Systems. A picture of a system in the form of a chart or map is a concise, complete, and easy-to-understand way to view a process or system.

o Process Maps. It is a pictorial representation of a business process using five symbols. It shows the steps and sequence of a business process and may show flow through individual departments.

o System Flowcharts. It shows inputs, computerized processing, and outputs of a computer system. It displays the sequence of processes and the media used in processing and storage. It uses standard flowchart symbols.

o Document Flowcharts. It also uses standard flowchart symbols, but shows only the flow of documents among or between departments or units. They are useful in understanding document flow and some aspects of internal controls.

o Data Flow Diagrams. It shows the logical design of a system using four symbols. They re used by system professionals in structured design to show successive exploded levels of detail.

o Entity Relationship Diagrams. It is a pictorial representation of the logical structure of a database. It shows the entities, the attributes of those entities, and the cardinality, or the relationships between entities.

Client-Server Computing. In a client-server system, two types of computers are networked together to accomplish processing. Client computers are “smart” terminals that can share some of the processing tasks. The server manages ad stores the large database and runs complex application programs. Tasks are assigned to either the client or server on the basis of which can handle the task most efficiently. In distributed presentation, the client manipulates data for presentation, but does not do any other significant processing. In distributed applications, the client PC does participate in processing beyond presentation of data. Many ERP systems use a web browser and individual PCs as the client computers.

Ethical Considerations At The Foundation Of AIS. An AIS can be used as a tool to conduct or cover up fraud or theft. If the IT systems are not closely monitored, these frauds could go undetected for long periods. As companies choose and implement IT systems, they must consider the ability to monitor these systems for fraud or unethical behavior.

Appendix A: Resources, Events, Agents In AIS. The REA model views accounting systems as data about resources, events, and agents. Resources are assets such as cash or inventory. Events are the business processes, and agents are parties such as the customer or vendor. REA is used as a model to understand accounting systems, but as of yet is limited in the practical application.

Spatelli’s Continuing Case Solution – Chapter 2

Do not make these Teaching Notes available for the general public. Please do not post Teaching Notes on an open website where they can be scanned by Google. When the Teaching Notes have been posted openly online in the past, it has caused problems for faculty at other institutions who are using the Teaching Notes in their classes.

Describe how each of the following types of orders at Spatelli’s differs from the processes and document flow mentioned in Exhibits 2-9 through 2-11.

1. In-store orders.

A process map for Spatelli’s in-store orders will look essentially the same as is depicted in Exhibit 2-9. See Chapter8processmaps.xls. The only difference is that, after preparing an order ticket, Spatelli’s servers enter the order information into the company’s point of sales system through computer terminals.

A document flowchart for Spatelli’s in-store orders would differ from Exhibit 2- 10 in that there is no need for multiple copies of an order ticket, since the order is entered into the POS system. Accordingly, Spatelli’s Kitchen and Accounting Department would not obtain a hard copy of the order ticket; rather, the order information would be viewed through the POS system.

A data flow diagram for Spatelli’s in-store orders would differ from Exhibit 2- 11 only in that a process (task) should be added for the input of the order information into the company’s POS system.

2. Telephone orders

A process map for Spatelli’s telephone orders will differ from Exhibit 2-9 in that the Order Center and Deliverer will replace the role of the Server. An Operator at the Order Center will take the customer order and enter the order information in the company’s POS system. The Deliverer will deliver the order and collect cash payments. Another difference that applies to Spatelli’s phone ordering system is that the customer’s payment process will depend upon the method of payment: credit card payment information is obtained and verified by the Operator at the Order Center; whereas, cash payments are collected by the Deliverer. See Chapter8processmaps.xls.

A document flowchart for Spatelli’s telephone ordering system will differ significantly from Exhibit 2-10 because Spatelli’s system generates few documents. When orders are received, they are entered directly into the computer terminal while the Operator speaks with the customer. The first hard copy document to be printed is the order ticket after it is received at the

restaurant location. The ticket is then forwarded to the Deliverer, who takes it on the delivery run and uses it to confirm the amount to be collected from the customer (for cash payments).

A data flow diagram for Spatelli’s telephone orders would differ from Exhibit 2- 11 in that a process (task) should be added for the input of the order information into the company’s POS system. This should occur before the order ticket is written. In addition, the customer’s payment data should be obtained at the time the order is received; i.e., there is no “billing” of the customer unless the customer indicates that a cash payment will be made upon delivery. Then the order ticket presented to the customer will serve as the “bill”.

3. Internet orders. A process map for Spatelli’s Internet orders will differ from Exhibit 2-9 in that the Order Center and Deliverer will replace the role of the Server. The Order Center captures the customer’s order as entered online, then the order information is forwarded to the restaurant location. The order is prepared at the restaurant and a Deliverer will deliver the order and collect cash payments. Like for telephone orders, another difference that applies to Spatelli’s Internet ordering system is that the customer’s payment process will depend upon the method of payment: credit card payment information is obtained and verified at the Order Center; whereas, cash payments are collected by the Deliverer. See Chapter8processmaps.xls.

A document flowchart for Spatelli’s Internet ordering system will differ from Exhibit 2-10 in much the same manner as for the telephone ordering system because Spatelli’s system generates few documents. When orders are received, they are entered directly into the computer system by the customer. The first hard copy document to be printed is the order ticket after it is received at the restaurant location. The ticket is then forwarded to the Deliverer, who takes it on the delivery run and uses it to confirm the amount to be collected from the customer (for cash payments).

A data flow diagram for Spatelli’s Internet orders differs from Exhibit 2-11 in that a process (task) should be added for the direct input of the order information by the customer. This should occur before the order ticket is written. In addition, the customer’s payment data should be obtained at the time the order is received; i.e., there is no “billing” of the customer unless the customer indicates that a cash payment will be made upon delivery. Then the order ticket presented to the customer will serve as the “bill”.