Lecture Accounting information systems: Chapter 6 - Richardson, Chang, Smith

Chapter 6
Purchase and
Payments
Business
Process

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Learning Objectives
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LO#1 Describe the business activities that comprise the
purchase and payment process
LO#2 Develop an activity model of the purchase and
payment process using BPMN
LO#3 Understand and apply different activity modeling
options
LO#4 Develop business rules to implement controls for
the purchase and payment process
LO#5 Develop structure models for the purchase and

payment process using UML class diagrams
LO#6 Implement a relational database from the UML
Class Diagram of the purchase and payment
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LO# 1

Review of Purchases and Payments
Accounting

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LO# 2

Sunset Graphics Purchases Process
1.

2.

3.

4.

Research prices and product availability
Select the best price and availability
combination and send a purchase order
to the supplier
Receive the items from the supplier (and

record the purchase and accounts
payable)
Pay the supplier according to the credit
terms
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LO# 2

Basic Purchases BPMN Activity Model

The basic activity model implements the process steps.

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LO# 3

Collaboration Model of the Purchases
Process

The collaboration model focuses on the message flows between the
pools.
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Adding Swimlanes to Show Functional
Responsibility

Swimlane

s
show
functional
responsibil
ities

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LO# 3


LO# 4

Process
Steps

Business Rules Examples for
Intention Purchases
Partner Authority/Action
Access Controls Application Controls
Process

Place Order

Order
products from
reliable
suppliers at
the best
available

prices to
meet required
delivery time

Manager approval
required for orders >
$5,000; Partner
ordering products must
not manage inventory

Partners
preparing
purchase orders
cannot modify
product inventory
records, receive
items, or pay
suppliers

System must
provide purchase
order number
control, default
values, range and
limit checks, and
create audit trail

Receive
Items

Record
receipt of
items
promptly and
accurately

Partner receiving items
must not be same
partner that ordered the
items

Partners receiving
items cannot
modify purchase
orders or
inventory records;
they cannot view
purchase order
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quantity ordered

System must only
allow partner to
enter the number of
items received,
subject to range
and limit checks on
quantities received;
date of receipt

LO# 5

Sunset’s Basic Purchases UML Class
Models

1.
2.

3.

Purchase Orders are commitments to purchase from the supplier.
Receipts document the receipt of items from the supplier (when purchases
recognized).
Cash disbursements pay for one or more receipts

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LO# 5

Revised Purchases UML Class
Diagram

Purchase Orders and Receipts collapsed into one Purchases events
Added Product Categories type image as defined in Chapter 5
Added Supplier Categories type image to show Sunset Partner responsibility for
Categories
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LO# 6

Implementing UML Diagram in a
Database

Database will contain 8 tables to implement classes and 1 linking table for the
relationship between Purchases and Products.

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Posting Foreign Keys Example
Partner Number posted to Purchases

Post towards the * and
away
from the 1

1..1

Purchases

Sunset
Partner

0..*
0..*
1..1

Supplier

Supplier Number posted to Purchases

Foreign keys implement links for one-to-many
relationships.
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Database Relationships

Which relationship is missing? How would you implement that?

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Did you notice the similarity between
the sales process and the purchase
process?

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