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TUTORIAL 5 ± TOPIC 2
Submission Date: 24 April 2011

QUESTION 1

Aini received a memo pertaining to Ayamanis Sdn Bhd sales order system, as illustrated below:

From: Executive Director

To: Miss Aini, Sales Manager of Ayamanis Sdn Bhd
Re: Report on current sales order system
I believe that our current sales order system has been improved from time to time. Thank
you for your cooperation and effort in improving company¶s revenue cycle. However, I
noticed that for almost five years, our company has used narrative description to illustrate
the process in revenue cycle. In line with internal auditor¶s suggestion, our company will
employ new documentation technique, namely data flow documentation and flowchart. I
need your cooperation in preparing these new documentations. Please refer to the
narrative below for further action.

The sales order system begins with sales clerk receive a customer order that specifies the
types and quantities of goods needed. Since orders are received from many different
sources (telephone, fax, and email), sales clerk transcribe all orders in a standard sales
order format and releases five copies of sales order. The stock release is sent directly to
the warehouse and sales invoice is sent to the billing department. The customer copy is
sent to the customer as a record of the order and the shipping notice and packing slip are
sent to shipping department. The original copy of the order is filed in the customer order
file for further reference (filed by customer name).

Based on the stock release, warehouse clerk picks the goods and initials the stock release
to indicate that the order is complete and accurate. The stock release will be sent to
shipping department, together with the goods. Upon receiving the goods from warehouse,
the shipping clerk reconcile the physical items with the stock release document, the
packing slip and the shipping notice to verify the correctness of the orders. The clerks
package the goods, attach the packing slip to the container, complete the shipping notice
and prepares bill of lading. The stock release and shipping notice is sent to the billing
department as a proof of shipment. The goods, together with packing slip and bill of
lading are sent to the courier for shipment.

Lastly, billing clerk enters the data from sales invoices; stock release; and shipping notice
into a computer terminal. Automatically system records the data into sales order file and
perform update procedure to the account receivable file, inventory master file and general
ledger files. Upon completion of this task, management reports and customer invoice are
printed. The management reports are sent to management and the customer invoice is
sent to customer to signify the end of the sales order system. All documents are then kept
in billing department by date.
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REQUIRED:
A. Prepare the following data flow diagram to represent sales order system of Ayamanis Sdn
Bhd as depicted in the memo:

(a) Context diagram.

(5 Marks)
(b)Logical data flow diagram (level 0).
(8 Marks)
(c) System flowchart.
(11 Marks)

B. Prepare Resource Event Agent (REA) diagram for Ayamanis Sdn Bhd.
(6 Marks)

QUESTION 2

K & I Home Mart sells household kitchen products to its customers. The products vary from
kitchen equipment, jugs, toaster, pots and other household products. All of the products sold are
supplied by many main suppliers based on the best price quotations and quality offered.

K & I Home Mart is interested in using database to record accounting transactions. As the first
attempt to the database development, K & I Home Mart asks you to prepare documents that
could assist in designing a good database system. You have conducted interviews with K & I
Home Mart manager regarding the current purchasing system. Below are parts of the recorded
interview:

You : Khyry, could you explain the current process flow whenever K & I Home Mart
want to purchase products from suppliers?

Khyry : Yes, sure. A purchase requisition is sent from the sales department to
Khaleela, a clerk in the purchasing department. Khaleela will prepare three copies
of purchase order from the information in the supplier files and fax the first copy
to the supplier. She then give the second copy of the purchase order to Eiman, a
clerk in the receiving department and the third copy to accounts payable
department¶s clerk, Nina.

You : How many days will the delivery arrive after Khaleela place the order?

Khyry : K&I Home Mart will accept delivery of ordered product in only one week.
When the receiving department accepts supplier goods together with the delivery
slip, Eiman, the receiving clerk will inspect the quantity and the quality of the
ordered product and prepares three copies of receiving report. She notifies Nina
and Khaleela by sending them the first and second copy of the receiving report
respectively, while she keeps the third copy in file. Nina also receives invoices
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from supplier. She matches the invoices with the purchase order notification and
the receiving report. She then updates the accounts payable master file and keeps
the documents in files. After that, Nina prepares a payment authorization and
check for me to sign before she issues the payment check to the supplier. I will
file the signed payment authorization document in my office. When the check is
issued, Nina prepares the payment summary report and sends to the general ledger
department.

REQUIRED:

(a) Draw physical data flow diagram for K & I Home Mart purchasing system.
(8 Marks)

(b) Draw flowchart for K & I Home Mart purchasing system.

(12 Marks)

(c) Prepare the REA diagram of the K & I Home Mart purchasing system.
(Cardinalities are NOT required).
(5 Marks)
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QUESTION 3

As the senior accountant in Call Zone Sdn. Bhd., you are assigned by the Human Resource
Manager to give a briefing on purchasing system to the new account trainees. As part of the
briefing, you decided to visualize the overall view of operation by using diagrams and charts.
Below is your presentation note (Figure 1) to help the new trainees understand the flow of
purchase operations.

Figure 1

Welcome to Call Zone Sdn. Bhd.

I¶m the senior accountant and I¶ll brief you the procedures of purchasing
process that are practiced here. Each of you (trainee) will be involved in
the purchasing activities through different departments.

The purchasing activities start when Miss Khyra, a clerk in the purchasing
department receives a purchase requisition from the inventory control
department. Miss Khyra will prepare 4 copies of purchase order based on
the information in the supplier files and fax the first copy of purchase
order to the supplier. As a proof of order and to acknowledge other
departments, she then gives the second copy of the purchase order (blind
copy) to Johnny, a staff in the receiving department and the third copy to
accounts payable department¶s clerk, Miss Nina. The last copy is filed in
her purchase order file.

Within one week, the supplier will ship the ordered goods. When the
receiving department receives the goods together with the delivery slip,
Johnny checks the quantity and the quality of the goods. He then writes 3
copies of receiving report and notifies Miss Khyra and Miss Nina by
sending both of them the first and second copy of the receiving report
respectively, while he keep the third copy in file. At the same day of
goods shipment, Miss Nina receives invoices from supplier. She
reconciles the invoices against the purchase order notification and the
receiving report. She creates a payment obligation to be paid at a future
date, depending on the terms of trade by updating the accounts payable
master file and later keeps the documents in files. After that, Miss Nina
prepares a payment authorization and a check for me to sign. I will file the
signed payment authorization document in my office and pass the signed
check back to Miss Nina. Miss Nina uses the signed check to prepare the
payment summary report before she issues the check to the supplier. The
payment summary report is then sent to the general ledger department.
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REQUIRED:

Prepare the following diagram to represent the purchasing system of the Call Zone Sdn. Bhd.:

(d) A context diagram.

(3.5 Marks)

(e) A physical data flow diagram.

(8 Marks)

(f) A document flowchart.

(13.5 Marks)

(d) A Resource-Event-Agent (REA) diagram (Cardinalities are NOT required).

(5 Marks)