Course: ISYS6186-Business Process Fundamental

Effective Period : February 2022

Data Flow Diagram

Session 15-16
 Acknowledgement

These slides have been adapted from:

Accounting Information Systems

15th (2021)
Marshall B. Romney, Paul J. Steinbart,
Scott L. Summers, David A. Wood.
Pearson Education Limited, England
ISBN: 978-1-2923-5337-1

Chapter 3
 Learning Outcome
Student will be able to :
• Describe the model of business process
• Construct an integrated business process
 Learning Objectives
After studying this chapter, student will be able to :

• Prepare and use data flow diagrams to understand,

evaluate, and document information systems.
 Why Document Systems?

• Accountants must be able to read

documentation and understand how a
system works (e.g., auditors need to assess
risk)
• Sarbanes–Oxley Act (SOX) requires
management to assess internal controls
and auditors to evaluate the assessment
• Used for systems development and changes
 Data Flow Diagrams

Data Flow Diagram (DFD)

A graphical description of the flow of data
within an organization, including data sources /
destinations, data flows, transformation
processes, and data storage.

Focuses on the data flows for:

• Processes
• Sources and destinations of the data
• Data stores
DFD are visually simple and can be used to
represent the same process at a high abstract
(summary) or detailed level.
Data Flow Diagrams
 Basic
Data Flow Diagram Elements

FIGURE 3-2
Basic Data Flow
Diagram Elements
It uses the first four symbols shown in Figure 3-1 to represent four basic elements:
data sources and destinations, data flows, transformation processes, and data
stores. For example, Figure 3-2 shows that the input to process C is data flow B,
which comes from data source A. The outputs of process C are data flows D and E.
Data flow E is sent to data destination J. Process F uses data flows D and G as input
and produces data flows I and G as output. Data flow G comes from and returns to
data store H. Data flow I is sent to data destination K.
 Basic
Data Flow Diagram Elements

FIGURE 3-3
Data Flow Diagram
of Customer Payment Process
 SUBDIVIDING THE DFD
Source: TABLE 3-1 Narrative Description of Payroll Processing at S&S
When employees are hired, they complete a new-employee form. When a change to an employee’s payroll status occurs, such as
a raise or a change in the number of exemptions, the human resources department completes an employee change form. A copy of these
forms is sent to payroll. These forms are used to create or update the records in the employee/payroll file and are then stored in the file.
Employee records are stored alphabetically.
Some S&S employees are paid a salary, but most are hourly workers who record their time on time cards. At the end of each pay
period, department managers send the time cards to the payroll department. The payroll clerk uses the time card data, data from the
employee file (such as pay rate and annual salary), and the appropriate tax tables to prepare a two-part check for each employee. The
clerk also prepares a two-part payroll register showing gross pay, deductions, and net pay for each employee. The clerk updates the
employee file to reflect each employee’s current earnings. The original copy of the employee paychecks is forwarded to Susan. The
payroll register is forwarded to the accounts payable clerk. The time cards and the duplicate copies of the payroll register and paychecks
are stored by date in the payroll file.
Every pay period, the payroll clerk uses the data in the employee/payroll file to prepare a payroll summary report for Susan so
that she can control and monitor labor expenses. This report is forwarded to Susan, with the original copies of the employee paychecks.
Every month, the payroll clerk uses the data in the employee/payroll file to prepare a two-part tax report. The original is
forwarded to the accounts payable clerk, and the duplicate is added to the tax records in the payroll file. The accounts payable clerk uses
the tax report to prepare a two-part check for taxes and a two-part cash disbursements voucher. The tax report and the original copy of
each document are forwarded to Susan. The duplicates are stored by date in the accounts payable file.
The accounts payable clerk uses the payroll register to prepare a two-part check for the total amount of the employee payroll and
a two-part disbursements voucher. The original copy of each document is forwarded to Susan, and the payroll register and the duplicates
are stored by date in the accounts payable file.
Susan reviews each packet of information she receives, approves it, and signs the checks. She forwards the cash disbursements
vouchers to Ashton, the tax reports and payments to the appropriate governmental agency, the payroll check to the bank, and the
employee checks to the employees. She files the payroll report chronologically.
Ashton uses the payroll tax and the payroll check cash disbursement vouchers to update the general ledger. He then cancels the
journal voucher by marking it “posted” and files it numerically.
 SUBDIVIDING THE DFD

The narrative in Table 3-1 describes five

data processing activities:
1. Updating the employee/payroll master
file (first paragraph).
2. Handling employee compensation
(second, fifth, and sixth paragraphs).
3. Generating management reports (third
paragraph).
4. Paying taxes (fourth paragraph).
5. Posting entries to the general ledger
(last paragraph).
 SUBDIVIDING THE DFD
context diagram - Highest-level DFD; a
summary-level view of a system, showing the
data processing system, its input(s) and
output(s), and their sources and destinations.

The highest-level DFD is referred to as a

context diagram because it provides the reader
with a summary-level view of a system. It
depicts a data processing system and the
entities that are the sources and destinations of
system inputs and outputs.
SUBDIVIDING THE DFD
 SUBDIVIDING THE DFD

FIGURE 3-5
Context Diagram for S&S Payroll Processing
SUBDIVIDING THE DFD

FIGURE 3-6
Level 0 DFD for
S&S Payroll
Processing
SUBDIVIDING THE DFD
FIGURE 3-7
Level 1 DFD for Process
2.0 in S&S Payroll
Processing
 Basic Guidelines
for Creating a DFD

• Understand the system that you • Identify and group all the basic
are trying to represent. elements of the DFD.
• A DFD is a simple representation • Name data elements with
meaning that you need to descriptive names, use action
consider what is relevant and verbs for processes (e.g., update,
what needs to be included. edit, prepare, validate, etc.).
• Start with a high level (context • Give each process a sequential
diagram) to show how data flows number to help the reader
between outside entities and navigate from the abstract to the
inside the system. Use additional detailed levels.
DFD’s at the detailed level to • Edit/Review/Refine your DFD to
show how data flows within the make it easy to read and
system. understand.
 Guidelines for
Drawing Data Flow Diagrams
• Identify and understand the
business process.
• Decide the level of detail
(summary or detailed DFD).
• Organize diagram using as many
rows needed to explain the
process.
• Enter each business process on
the diagram showing where it
begins and ends.
• Draw a rough sketch, refine, and
finalize.
Preparation of session 19-20:
• Learn the material (Chapter 16 – The Production
Cycle) from textbook and from Binusmaya.
• Students must take a note at home after they
learned the online material and bring it into
session 19&20.
• Every group must write company production
business process description and submit to
Binusmaya Group Assignments.
 e r m s
Key T
c u m e ntation
• Do
e d e sc ription
rativ (DFD)
• Nar a g ram
D a ta flow di
•
D a ta source
•
a d e st ination
• Dat
D a t a flow
•
ess
• Proc
D a ta store
• iagram
t ex t d
• Con
Con
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to s
e ssio
n 17-1
Tha 8
nk y
ou