Background and Billing Process

Fairfaxx Novelties manufactures and sells novelty items to retail stores. Completed orders (goods and attached sales order) are received in the shipping department from the factory floor. The shipping clerk keys the sales order number into the computer in the shipping department. The computer accesses the sales order on the sales order master data and displays the open sales order. After determining the correct sales order has been displayed, the shipping clerk keys in the items and quantities being shipped. The clerk reviews the shipment data and, if correct, accepts the input. (Note: the remainder of the shipment process is beyond the scope of this case narrative)

After the shipment data has been accepted, the computer updates the sales order master data to reflect the shipment, creates and records an invoice on the accounts receivable master data, and prints an invoice, in three copies on the printer in the billing office. A billing clerk signs the invoice, mails copies 1 and 2 to the customer, and files copy 3 by customer name.

Cash Receipt Process

Assume that customers have been billed and have sent a payment with copy 2 of the invoice, on which they have filled in the amount remitted. The cash receipts clerk compares the cheque to the amount written on the invoice and, in a space reserved, enters the amount received so that it can be computer scanned.

Cheques and these invoice copies are batched. The invoice copies are sent to the IT department. The deposit slip is prepared, in triplicate, and the cheques are deposited. Copies of the batch totals and deposit slip copy 2 are filed separately by date. Copy 3 of the deposit slip is sent to the treasurers office.

The IT department uses an optical scanner to process the invoice copies. This run occurs each evening at 10 p.m. Customers accounts are posted, and a cash receipts listing is produced and sent to cash receipts each morning, where it is checked against and filed with the related batch totals. A copy of the cash receipts listing is sent to the treasurers office.

Based on the given cash receipt process given above, answer the following questions:

a. Prepare a table of entities and activities

b. Draw a context diagram (6 marks)

c. Draw a physical data flow diagram (DFD) (14 marks)

d. Prepare an annotated table of entities and activities. Indicate on this table the groupings, bubble numbers, bubble titles to be used in preparing a level 0 logical DFD (6 marks)

e. Draw a level 0 logical DFD (14 marks)

f. Draw a system flowchart (22 marks)