CHAPTER 4:

DOCUMENTING INFORMATION
SYSTEMS
LEARNING OBJECTIVES

• Read and evaluate data flow diagrams.

• Read and evaluate systems flowcharts.
• Prepare data flow diagrams from a narrative.
• Prepare systems flowcharts from a narrative.
DOCUMENTATION PROCESS

• Process documentation is a important skill in

accounting.

• Data flow diagrams portray a business processes’

activities, stores of data, and flows of data among
those elements.

• System flowcharts present a comprehensive picture of

the management, operations, information systems,
and process controls embodied in business processes.
READING

SYSTEM

DOCUMENTATION
4
BASIC DFD SYMBOLS
 Context Diagram
 A CONTEXT DIAGRAM IS A TOP-LEVEL, OR LEAST DETAILED, DIAGRAM OF
AN INFORMATION SYSTEM THAT DEPICTS THE SYSTEM AND ALL OF ITS
ACTIVITIES AS A SINGLE BUBBLE, AND SHOWS THE DATA FLOWS INTO AND
OUT OF THE SYSTEM AND INTO AND OUT OF THE EXTERNAL ENTITIES.
 EXTERNAL ENTITIES ARE THOSE ENTITIES (I.E., PERSONS, PLACE, OR
THINGS) OUTSIDE THE SYSTEM THAT SEND DATA TO, OR RECEIVE DATA
FROM, THE SYSTEM.
 PHYSICAL DFD
 Graphical representation of a system showing the
system’s internal and external entities, and the
flows of data into and out of these entities.

 Specifies where, how, and by whom a system’s

processes are accomplished.

 Does not specify what is being accomplished.

 In the following slide, we see where the cash goes

and how the cash receipts data are captured but
not exactly what was done by the sales clerk.
PHYSICAL DFD
 LOGICAL DFD
 Graphical representation of a system showing the
system’s processes (as bubbles), data stores, and the
flows of data into and out of the processes and data
stores.
 Used to document information systems —what tasks
the system is doing— without having to specify how,
where, or by whom the tasks are accomplished.
 Concentrates on the functions that a system performs.
 A logical DFD portrays a system’s activities, whereas
a physical DFD depicts a system’s infrastructure.
 Both are needed to completely understand a system.
LOGICAL DFD
 BALANCED DFDS

Exist when the external data flows are equivalent.

On the following slide;
DFD (a) is a context diagram and
(b) is an “explosion” of it into a level 0 logical
DFD. DFD

(c), (d) and (e) are “explosions” of the logical level

0 DFD, etc.
BALANCED DFDS
Common System Flowchart Symbols
 COMMON SYSTEM
FLOWCHARTING
ROUTINES

 The following slides show several common ways

of showing processing using system flowcharting
Enter Document Into Computer Via
Keyboard,
Edit Input, Record Input.
 THE DATA ENTRY CLERK KEYS AN INPUT DOCUMENT INTO A
COMPUTE.

 THE COMPUTER ACCESSES DATA IN DATA STORE 1 AND IN

DATA STORE 2 TO EDIT/VALIDATE THE INPUT.

 THE COMPUTER DISPLAYS THE INPUT INCLUDING ANY

ERRORS.
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 THE CLERK COMPARES THE INPUT
DOCUMENT TO THE DISPLAY, KEYS
CORRECTIONS AS NECESSARY, AND
ACCEPTS THE INPUT.

 THE COMPUTER UPDATES THE TABLE IN

DATA STORE 2 AND NOTIFIES THE CLERK 16

THAT THE INPUT HAS BEEN RECORDED.

Enter document into computer via
keyboard, edit input, record input.
 User queries the computer.
 A User keys a Query request into a computer.

 The computer accesses the table(s) in one or more data

stores and presents a response to the user.

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User queries
the
computer.

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UPDATE SEQUENTIAL DATA
STORE.
 Inputs (ex. Cash receipts) that has previously been recorded on
a magnetic disk are input to the computer, along with the
existing (old) master data (ex. accounts receivable master
data).

 The computer updates the existing master data and creates a

new version of the master data
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 Update
sequential
data store.

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 PREPARATION AND MANUAL
RECONCILIATION OF CONTROL
TOTALS.
 The user batches the documents, prepares batch totals, and
keys the documents into the computer.

 The computer records the inputs on a disk and notifies the

users as each input is accepted.

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 The users files the input documents in numerical sequence.

 At the end of the batch, the computer prepares an exception

and summary report that includes batch totals.

 The user compares the computer batch totals to those

prepared prior to entry of the documents.

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 Preparation and manual
reconciliation of control totals.

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KEY AND KEY VERIFY INPUTS.
 A DATA ENTRY CLERK ENTERS DOCUMENTS INTO A
NETWORKED PC SYSTEM.

 THE SYSTEM RECORDS THE INPUTS ON A DISK AND NOTIFIES

THE USERS OF THE ACCEPTANCE OF EACH INPUT.

 THE DOCUMENTS ARE THEN FORWARDED TO A DIFFERENT

CLERK WHO KEYS THE DOCUMENT AGAIN.

 DIFFERENCES ARE RESOLVED, AND THE EVENT DATA ARE 25

UPDATED TO REFLECT THE VERIFICATION AND CORRECTIONS.
 Key and
key verify
inputs.

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ENTER DOCUMENT INTO
COMPUTER USING A SCANNER.
 A CLERK SCANS A DOCUMENT INTO THE COMPUTER.

 USING THE DATA FROM THE SCANNED DOCUMENT, THE

COMPUTER UPDATES THE DATA LOCATED ON ONE OR
MORE DATA STORES.

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 Enter document into
computer using a scanner.

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ENTER DOCUMENT INTO
COMPUTER USING SCANNER &
MANUAL KEYING.

 A CLERK SCANS A DOCUMENT INTO THE

COMPUTER.

 THE COMPUTER ROUTES AN IMAGE OF

THE SCANNED INPUT TO A DATA ENTRY
CLERK, WHO KEYS DATA FROM THE
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DOCUMENT’S IMAGE INTO THE
COMPUTER.
Enter Document Into Computer Using
Scanner & Manual Keying.

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PREPARING

SYSTEM

DOCUMENTATION 31
PREPARING DATA FLOW DIAGRAMS

• Read narrative carefully - number lines

and paragraphs in text.

• Prepare table of entities and activities.

• Draw context diagram - use DFD
guidelines.
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THE NARRATIVE

A narrative describing the cash receipts system

for Causeway Company.

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 The first column
indicates the paragraph
number;

 The second column

contains the line number
for the text of the
narrative.

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TABLE OF ENTITIES AND
ACTIVITIES
 TO BEGIN YOUR TABLE, GO THROUGH THE NARRATIVE LINE
BY LINE AND CIRCLE EACH ACTIVITY BEING PERFORMED.
 AN ACTIVITY IS ANY ACTION BEING PERFORMED BY AN
INTERNAL OR EXTERNAL ENTITY. ACTIVITIES CAN INCLUDE
ACTIONS RELATED TO DATA OR TO AN OPERATION PROCESS.
 OPERATION PROCESS ACTIVITIES MIGHT INCLUDE PICKING
GOODS IN THE WAREHOUSE, INSPECTING GOODS AT THE
RECEIVING DOCK, OR COUNTING CASH.
 FOR EACH ACTIVITY THERE MUST BE AN ENTITY THAT
PERFORMS THE ACTIVITY. 35

 AS YOU CIRCLE EACH ACTIVITY, PUT A BOX AROUND THE

ENTITY THAT PERFORMS THE ACTIVITY.
EXAMPLE

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TABLE OF ENTITIES AND
ACTIVITIES
 List each activity in the order that it is performed, regardless of
the sequence in which it appears in the narrative.

 List the activity, along with the name of the entity that performs
the activity and the paragraph number indicating the location of
the activity in the narrative.

 After you have listed all activities, consecutively number each.

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38
DRAWING THE
CONTEXT DIAGRAM
39
 DFD GUIDELINES
1. Include within the system context (bubble) any entity that
performs one or more information processing activities.

 Information Processing Activities retrieve data from

storage, transform data, or file data. This include document
preparation, data entry, verification, classification, arrangement
or sorting, calculation, summarization, and filling both manual
and automated.

 Operation process activities are not information processing

40
activities.
2. For now, include only normal processing routines, not
exception routines or error routines, on context diagrams,
physical DFDs, and logical level 0 DFDs.

 occurs only when the payment data contains error, we will

not consider this activity for now.

 Table of entities and activities, with certain non-iformation

processing activities marked, should indicate that the
mailroom, accounts receivable, cashier, and computer
information processing activities and will be included in
our diagrams as internal entities.

 The customer, on the other hand, does not perform any such
activities and will be an external entity. 41
3. Include on the systems documentation all (and only) activities
and entities described in the systems narrative.

4. When multiple entities operate identically, depict only one to

represent all.

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 DFD GUIDELINES
5. For clarity, draw a data flow for each flow into and out of a data store. You may
label each flow with the activity number that gives rise to the flow or with a
description of it.
 Causeway current physical DFD, the data store of endorsed checks is connected
to the cashier.

 This file, not mentioned in the narrative, was added to show that the cashier must
retain batches of checks until the deposit slip is printed on the computer terminal.

6. If a data store is logically necessary (because of a delay between processes),

include a data store in the diagrams, whether or not it is mentioned in the narrative.

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CAUSEWAY CURRENT PHYSICAL DFD

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DRAWING THE
CURRENT LOGICAL
DATA FLOW
45
 DFD GUIDELINES (CONT’D.)
7. Group activities if they occur in the same place
and at the same time.

8. Group activities if they occur at the same time but

in different places.

9. Group activities that seem to be logically

related.

10.To make the DFD readable, use between five

46
and seven bubbles.
47
SUMMARY OF DRAWING DATA
FLOW DIAGRAMS
 FIRST AND FOREMOST, DON’T LET THE RIGOR OF THE
DOCUMENTATION GET IN THE WAY OF USING THE DIAGRAMS
TO UNDERSTAND THE SYSTEM.
 MANY GUIDELINES, HINTS, AND INSTRUCTIONS TO HELP YOU
DRAW THE DFDS.

48
 There are times when an operations process function performs
information processing activities.

For example, when the receiving department prepares a document

indicating how many widgets have been received, it is performing an
information processing activity. The warehouse and the shipping
department are other operations process unit that often perform
information processing activities.

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 THE FOLLOWING GUIDELINES
APPLY:
11.A data flow should go to an operations entity square only
when operations process functions such as storing goods,
picking goods, packing orders and so on are to performed by
that entity. A data flow should enter an entity bubble if the
operations process entity is to perform an information
processing activity.
12.On a physical DFD, reading computer data stores and writing
to computer data stores must go through a computer bubble.
13.On a logical DFD, data flows cannot go from higher- to lower-
numbered bubbles.
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CAUSEWAY CURRENT LOGICAL DFD
(LEVEL 0)

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PREPARING SYSTEM
FLOWCHARTS
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 PREPARING SYSTEMS
FLOWCHARTS
1. Divide the flowchart into columns; one column for each internal
entity and one for each external entity. Label each column.

2. Flowchart columns should be laid out so that the flowchart

activities flow from left to right. Minimize crossed lines and
connectors.

3. Flowchart logic should flow from top to bottom and from left
to right. For clarity, put arrows on all flow lines.

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PREPARING SYSTEMS
FLOWCHARTS
4. Keep the flowchart on one page, if possible. With multiple
pages use off-page connectors.

5. When using a computerized flowcharting package, your

flowcharts will only print on paper that fits in your printer.

6. Within each column, there must be at least one manual

process, keying operation, or data store between documents.
Do not directly connect documents within the same column.
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 PREPARING SYSTEMS
FLOWCHARTS
7. When crossing organizational lines (one column to
another), show a document at both ends of the flow line
unless the connection is so short that the intent is
unambiguous.

8. Documents or reports printed by a centralized computer

facility on equipment located in another organizational
unit should not be shown within the computer facility.
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 PREPARING SYSTEMS
FLOWCHARTS
9. Processing within an organizational unit on devices such as
a PC or computerized cash register should be shown within
the unit or as a separate column next to that unit, but not in
the central computer facility column.

10. Sequential processing steps (computerized or manual)

with no delay between them (and resulting from the same
input) can be shown as one process or as a sequence of
processes. 56
PREPARING SYSTEMS
FLOWCHARTS
11.The only way into a computer data storage unit is
through a computer processing rectangle.

12.A manual process is not needed to show the sending

of a document.

13.Do not use a manual process to file a document.

Show the document going into a file.

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CAUSEWAY’S SYSTEMS
FLOWCHART

• The systems flowchart for Causeway follows

on the next slide.

• This flowchart is without an enterprise

database.

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Causeway’s Systems Flowchart

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Documenting Enterprise
Systems

60
DOCUMENTING ENTERPRISE
SYSTEMS
 Moving from a file-based system to an enterprise
database changes the system flowchart.
• An enterprise database replaces transaction and master data.
• Other flows may change depending on the system
implementation.

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CAUSEWAY’S SYSTEMS
FLOWCHART

• The systems flowchart for Causeway follows

on the next slide.

• This flowchart is with an enterprise database.

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CAUSEWAY’S SYSTEMS FLOWCHART

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