SYSTEM

DOCUMENTATION
TECHNIQUES

CATSU-AE20 – Accounting Information System Prepared by: Zandro T. Narit, CPA

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OBJECTIVE

• Understand the importance of system documentation.

• Able to identify the types of documents
• Be familiar with different AIS documentation techniques
• Understand flowcharts symbols for each documentation
techniques.
• Explore the use of flowcharts in documenting processes,
systems, and procedures.

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WHY SYSTEM
DOCUMENTATION Organizational Knowledge Preservation
Documentation ensures that essential knowledge
MATTERS? about systems and processes is preserved for
current and future use.

Regulatory Compliance
Documentation helps in meeting industry
regulations and compliance standards, reducing
legal risks and ensuring accountability.

Efficiency and Productivity

Proper documentation streamlines processes,
enhances productivity, and reduces the risk of
errors or downtime.

CATSU-AE20 – Accounting Information System 2/16/2024

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TYPES OF SYSTEM DOCUMENTATION

User Manuals Process Documents Workflow Diagrams

Comprehensive guides that These documents outline the Graphical representations that
provide users with instructions step-by-step processes involved in illustrate the sequence of tasks
on how to efficiently use a system system functionality and and activities within a process or
or application. operations. system.

CATSU-AE20 – Accounting Information System 2/16/2024

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DOCUMENTATION TECHNIQUES

• Data Flow Diagrams (DFD) and Entity

Relationship Diagrams
• System Flowcharts
• Program Flowcharts
• Record Layout Diagrams

- James Hall Accounting Information System 10th Edition

CATSU-AE20 – Accounting Information System 2/16/2024

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DOCUMENTATION TECHNIQUES

Data Flow Diagram (DFD) uses symbols to

represent the entities, processes, data flows, and data
stores that pertain to a system. DFD’s are used to
represent at different levels of detail from very general to
highly detailed.

CATSU-AE20 – Accounting Information System 2/16/2024

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 DATA FLOW DIAGRAMS (DFD)
SYMBOL Description

Entity Input Source or Output

Name destination of Data

N
A process that is triggered
Process or supported by data
Description

A store data such as a transaction file,

Data Store a master file, or a reference file
Name

Direction of data flow

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Data Flow Diagram (DFD) uses symbols to represent the entities, processes, data
flows, and data stores that pertain to a system. DFD’s are used to represent at
different levels of detail from very general to highly detailed. Entities in a DFD
represent objects that lie outside the system being modeled. They are the source of
and destinations for data. These may be other interfacing systems or entities external
to the organization. As a matter of convention, entities are labeled as singular nouns
on a DFD, such as customer and supplier. Data stores represent the accounting files
and records used in each process, and the labeled arrows represents data flows
between processes, data stores, and entities.
Processes in the DFD should be labeled with a descriptive verb such as Review
Inventory Levels, Prepare Purchase Order, Receive Customer Order, and Update
Accounts Receivable. Processes should not be represented as nouns like Inventory
Warehouse, Purchases Dept., and Sales Dept.

- James Hall Accounting Information System 10th Edition

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DATA FLOW DIAGRAMS OF PURCHASING SYSTEM

Purchase
Inventory
Order

Inventory PO details
Levels

Inventory Vendor
Review Requisition Prepare Details Vendor
Inventory Purchase
Record
Levels Order

Purchase
Order

Vendor
- James Hall Accounting Information System 10th Edition

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DOCUMENTATION TECHNIQUES

Entity Relationship (ER) Diagram is a

documentation technique used to represent the
relationship between business entities.

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 ENTITY RELATIONSHIP DIAGRAM SYMBOL

Sales- 1 1 Company
person Car

Customer
1 M Sales
Order

M M
Vendor Inventory

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Entity Relationship Diagram is a documentation technique used to represent the

relationship between business entities. The term entity applies to anything about
which the organization captures data. An entity may be a physical resource
(automobile, cash, or inventory), an event (customer order, purchase inventory, or
receive payment), or an agent (salesperson, customer, or vendor).

The square symbol represents entities in the system. The labeled connecting line
represents the nature of the relationship between two entities. The degree of the
relationship, called cardinality, is the numeric mapping between entities such as one-
to-one (1:1), one-to-many (1:M), and many-to-many (M:M). Cardinality reflects
normal business rules as well as organizational policy.

- James Hall Accounting Information System 10th Edition

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DATA MODEL

M M Purchase
Inventory
Order

Vendor

- James Hall Accounting Information System 10th Edition

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DOCUMENTATION TECHNIQUES
Relationship between ER Diagrams and DFDs

DFDs and ER diagrams document different aspects of

systems, but they are related. DFDs model system
processes while ER diagram model the data used in
systems. Each data store in a DFD is represented as an
entity in a corresponding ER diagram.

- James Hall Accounting Information System 10th Edition

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 DOCUMENTATION TECHNIQUES

System Flowcharts is the graphical representation of

the physical relationship among key elements of a
system.

CATSU-AE20 – Accounting Information System 2/16/2024

• System Flowcharts is the graphical representation of the physical relationship

among key elements of a system. These elements ma include organizational
departments, manual activities, computer programs, hard-copy accounting records
(documents, journals, ledgers, and files), and digital records (reference files,
transaction files, archive files, and master files). System flowcharts also describe
the physical computer media being employed in the system, such as magnetic
tape, magnetic disks, and terminals.

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SYMBOL SET FOR REPRESENTING MANUAL PROCEDURES
Terminal showing source or
destination of documents and On-Page connector
reports

Source document or report

Off-page connector

Manual Operation

File for storing source documents Description of process

and reports or comments

Accounting records (journals,

registers, logs, ledgers) Document flowline

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SYSTEM FLOWCHART - MANUAL PROCEDURES
Sales Department Credit Department Warehouse Shippping Department
Customer
Sales Order Sales Order
A
Customer 1 2
Order

Prepare Sales Order

Check Credit Pick Stock
Sales Order 4
Credit Record Goods Records
Sales Order
3
Customer
Order
Sales Order
4 Signed Sales Order
Sales Order Sales Order 2
3 1
Ship
Sales Order Goods
2
Sales Order
1
Signed
N Sales Order Sales Order
1 Sales Order 4
2 Sales Order
3
Distribute
A
SO and
File

Customer N
Sales Order
Order
Signed 4
Sales Order Sales Order
1 3 Customer
Sales Order
N 2

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SYMBOL SET FOR REPRESENTING COMPUTER PROCESS
Hard copy (source documents and
output)
Terminal Input/output device
Computer Process (program run)

Process Flow

Direct access storage device (disk

pack)

Video display device

Magnetic tape (sequential storage

device)

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SYSTEM FLOWCHART COMPUTER PROCESS
Sales Department Credit Department Warehouse Shippping Department
Customer
Sales Order
A
1
Edit and
Credit Check Credit History File

Customer
Order Sales Order
Pick
Goods 3
Sales Order
2
Shipping
Sales Order Log
Sales Order
1
Input Order Ship
AR File Goods

Update
Program
Update Stock
Customer Sales Order
Records Sales Order
Order 2
Inventory 1 Sales Order
3

N Stock Records
A N
Sales Order
3
Sales Order Customer
2 Sales Order
Sales Order 1
1

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 DOCUMENTATION TECHNIQUES

Program Flowcharts is a graphical representation of

the logical flow of control within a computer program.

CATSU-AE20 – Accounting Information System 2/16/2024

Program Flowcharts is a graphical representation of the logical flow of

control within a computer program. It illustrate the sequence of steps or
action that the program takes to accomplish a specific task or process.
Program flowcharts use standardized symbols and connectors to
represent different elements of the program’s logic, such as input,
processing, decision-making, and output.

-Deitel, P.J.,Deitel, H.M., & Choffnes, D.R. (2017). Introduction to Java Programming,
Comprehensive Version.

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PROGRAM FLOWCHART SYMBOLS

Logical Process

Input/Output operation (read and

write records)
Decision

Flow of logical process

Terminal Start or end operation

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PROGRAM FLOWCHART
Start

Read
Record

Yes
EOF Stop

No

Mark Record Yes

Error
Bad

No

Yes Mark Record

Error
Bad

No

Mark Record Yes

Error
Bad

No
Write to
Bad Edit File
Write to Record
Error File No
Yes

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 DOCUMENTATION TECHNIQUES

Record Layout Diagrams are used to reveal the

internal structure of digital records in a flat-file or
database table.

CATSU-AE20 – Accounting Information System 2/16/2024

Record Layout Diagrams are used to reveal the internal

structure of digital records in a flat-file or database table. The
layout diagram usually shows the name data type, and length of
each attribute (or field) in the record. Detailed data structure
information is needed for such tasks as identified certain types
of system failures, analyzing error reports, and designing tests
of computer logic for debugging and auditing purposes.

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RECORD LAYOUT DIAGRAM

Customer File
Customer Customer Street City State Zip Code Credit Limit
Number Name Address

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 Q&A
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