Instructions:

REA model with minimum and maximum cardinalities of the business process (transaction cycle) you will be prototyping for your System Project.

1. Make up a company in you assigned industry. Industry assignments are available under Project Step 1 folder.

2. narrative for your transaction cycle - must be unique. (Use of safe assign to check for non-original work). In a paragraph, briefly explain how that transaction cycle works in your company. You can take a look at the descriptions we have seen in the REA Exercises, but as long as you explain things clearly, you do not have to use a similar language.

3. Complete an REA model with minimum and maximum cardinalities of the process (transaction cycle) you will be prototyping for your System Project.

a. Model one complete transaction cycle REA model with cardinalities.

b. Design two many-to-many relationships in your REA model.

4. Identify the 2 related events you want to choose for your system project.

These 2 events must be connected by a relationship line. Your narrative should be completed in MS Word. The REA model based on your narrative can be handwritten for this assignment, although your final project will require the REA model to be completed using a computer application. Your REA model for this assignment and your final project should include your complete transaction cycle. However, your final project and implementation require you to only prototype (build in Access) your 2 chosen events (and related agents & resources).

How to choose business processes: An expanded business process listing for Sales/Collection & Acquisition/Payment processes is on page 2 below and in the text book. Page 3 below shows 2 prior student examples of Step 1. If you decide to go with another business process (e.g. Payroll Cycle), please refer to the book for its events and other characteristics. While you may not have to use all the events listed on page 2, the more realistic (for your chosen company in your assigned industry) and detailed your model is, the higher your grade will likely be. Pages 3 and 4 below shows 2 prior student examples of Step 1. The REA on Page 3 is for a Real Estate company.

The REA on page 4 is for a payroll processing company. This one is computer drawn because this was the final project submission. Step 1 can be hand drawn - but make sure to identify the two events that will be selected for the remaining part of the project. The two selected events need to be connected. These examples use the Chen's method to denote cardinalities, but you may also use the Crow's method for cardinalities (we used this in the past lectures). Upload your written narrative and REA model. The REA can be handwritten, although your final project will require this to be completed using a computer application.

What to submit: A word document and required REA and narrative in proper format. Points will be deducted for unprofessional or incorrect submissions. Late submissions will be assigned point deductions.

Business Processes - Summarized Sales/Collection Process

Typical Events Marketing Event Customer Order Event Moving Inventory Event Shipping Inventory/Provide Services Event Receive Customer Payment Event Accept Returns and Approve Allowances Event Write-Off Uncollectible Accounts Event

Common Documents :Customer Order Sales Order Shipping Documents Sales Invoice Credit Memorandum Customer Statement Remittance Advice

Additional Reports (sample) :Open Orders Sales Journal Profitability Analyses Customer Mailing Labels Aged Receivables Demographic Analyses Performance Information on Products, Salespeople.

Event Controls (sample): A shipment occurring without an authorized order An order being approved without proper customer and credit review An order being entered by an unauthorized employee A shipment being sent to the wrong customer A shipment containing incorrect or excess items A shipment being set to an employee's address A cash receipt being credited to a customer without receiving cash.

Acquisition/Payment Process - Goods or Services Typical Events:

Request for Goods/Service Event Authorize Purchase Event Purchase Goods/Service Event Receive Goods/Service Event Cash Disbursement Event Purchase Return Event.

Common Documents:

Purchase Requisition Purchase Order Receiving Report

Check Additional Reports (sample): Open Requisitions Open Purchase Orders Vendor Performance Reports Aged Payables Stock Status Reports Purchases Journal.

Event Controls (sample): Initiating a purchase order without an authorized request Approving a purchase order without a proper review Having a fictitious employee approve a purchase order Having a receiving clerk delete or modify a purchase order Accepting a shipment containing incorrect items Accepting a shipment of inferior goods Accepting a shipment without a valid and approved purchase order Disbursing cash without a corresponding receipt of goods Disbursing cash for an amount that does not correspond to the receipt of goods Disbursing cash to an invalid or fictitious vendor.