ENTERPRISE INFORMATION SYSTEMS
A PATTERN BASED APPROACH
Chapter 9
The Acquisition/Payment Business Process
McGraw-Hill/Irwin
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Learning Objectives
1. Identify activities and documents common to
acquisition/payment business processes for various
enterprises
2. Identify the components of the REA ontology in the
acquisition/payment business process
3. Explain how the acquisition/payment business process fits
into an enterprise’s value system
4. Explain how the acquisition/payment business process fits
into an enterprise’s value chain
5. Create a REA business process level model for an
enterprise’s acquisition/payment business process
6. Identify common information needs within the
acquisition/payment process
7. Create queries to meet common information needs in the
acquisition/payment process
9-2
Acquisition/Payment Process in an
Enterprise Value System
9-3
Acquisition/Payment Business
Process in Enterprise Value Chains
Partial value chain
for a manufacturer
Partial value chain
for a distributor
9-4
REA Acquisition/Payment
Business Process Level Pattern
9-5
REA Acquisition/Payment Business
Process Level Pattern: Operating Assets
9-6
Acquisition/Payment Process Events
• Instigation Events in the Expenditures
– Are usually internally instigated; triggered by an identified
need
– External instigation is possible, e.g. need may be
identified as result of supplier visit
– Internal agents involved in acquisition cycle instigation
events usually are department supervisors (who identify
the need and who authorize the eventual expenditure)
and purchasing agents (who process the requisitions)
– External agents involved in acquisition cycle instigation
events usually are suppliers
– Typically there is no need to specifically identify a good or
service for purposes of instigation events; information
about the type of good or service promoted is usually
sufficient
9-7
Purchase/Requisition Event
• Purchase Requisition Event
– An instigation event that is entirely internal; typically
involves a department supervisor identifying a need
for a type of good or service and communicating that
need to the purchasing department
– Is usually symbolized by a purchase requisition
document or data entry screen that summarizes
information about this event (e.g. which department
supervisor and which purchasing agent participated,
date of request, date by which goods or services are
needed, what goods and/or services are needed, any
recommended source/supplier, etc.)
9-8
Purchase Requisition
9-9
Relational Tables Encompassing
Purchase Requisition event
9-10
Acquisition/Payment Process Events
• Mutual Commitment Events in the Acquisition/
Payment Process
– Involve the enterprise and an external business partner
agreeing to exchange resources at a defined future time
– Don’t always happen at a discrete point in time; often
involves a series of activities
– Internal agents are usually purchasing agents
– External agents usually are suppliers
– Typically there is no need to specifically identify a good
or service for purposes of mutual commitment events;
information about the type of good or service promoted is
usually sufficient
– Ideally enterprises would like to be able to trace mutual
commitment events to the instigation events that
triggered them
9-11
Purchase Order Event
• A mutual commitment event whereby a supplier
agrees to provide goods to the enterprise and the
enterprise agrees to pay an ascertained price for
those goods
• Is usually symbolized by a purchase order
document or data entry screen that summarizes
information about this event (e.g. order date,
promised delivery date, payment terms, dollar
amount, which supplier and purchasing agent
participated, what products the enterprise ordered,
etc.)
9-12
Rental Order Event
• A mutual commitment event whereby a supplier
agrees to transfer possession of some goods to the
enterprise for a defined time period and bestows
on the enterprise the right to use the goods for a
prescribed purpose; in exchange the enterprise
agrees to pay an ascertained price
• Is usually symbolized by a rental contract
document that summarizes information about this
agreement (e.g. contract date, dollar amount,
goods to be rented, time period for which each
good is to be rented, payment terms, which
purchasing agent and suppliers participated, etc.)
9-13
Service Order Event
• A mutual commitment event whereby a supplier
agrees to perform one or more services for the
enterprise during a defined time period for an
agreed upon price to be paid by the enterprise
• Is usually symbolized by a service contract
document that summarizes information about
this agreement (e.g. contract date, dollar
amount, services to be performed by supplier,
time period during which services will be
performed, payment terms, which purchasing
agent and supplier participated, etc.)
9-14
Purchase Order
9-15
Relational Tables Encompassing
Purchase Order Event
9-16
Acquisition/Payment Process Events
• Economic Increment Events in the Acquisition
Cycle
– Represent the receipt of goods or services for which the
enterprise will give up some other resource (usually cash)
– Do not always happen at discrete points in time; may
involve a series of workflow activities
– Resources vary for different types of businesses
• Inventory (Inventory type may substitute for Inventory),
Services (Service Type may substitute for Services),
Temporary use of asset (as in a rental)
– Internal Agents are typically purchasing agents and
receiving clerks
– External Agents are typically suppliers or vendors
9-17
Purchase (aka Acquisition) Event
• Economic increment event in which title (ownership) of one or
more products is transferred from a supplier to the enterprise.
The transfer may take place in person (e.g., purchase agent
goes to Office Depot to buy paper, or supplier hand-delivers
goods to enterprise) or via transit (supplier shipped goods to
enterprise)
• Usually symbolized by a receiving report document or data entry
screen that summarizes information about the title transfer (e.g.
date, dollar amount, product(s) for which title transferred,
payment terms, which purchase agent and supplier participated,
etc. Supplier invoice information may also be included in
recording this event, but should not be used as the exclusive
representation of this event (because there is usually a time lag
between title transfer and receipt of supplier invoice)
9-18
Rental Acquisition Event
• Economic increment event in which possession
of goods is transferred to the enterprise by a
supplier for an agreed upon length of time for an
agreed upon purpose and price
• Usually occurs over an extended period of time,
rather than occurring at a single point in time
• Is usually symbolized by documents or data entry
screens that summarize information about the
transfer of possession of goods from the supplier
to the enterprise and then the return of goods to
the supplier (e.g. dates, times, which products,
suppliers, and employees were involved, etc.)
9-19
Service Acquisition Event
• Economic increment event in which a supplier
performs one or more types of service for the
enterprise
• May occur over a period of time or may be
performed at a single point in time
• Is usually symbolized by a document indicating
the receipt of services (or equivalent data entry
screens) that summarize the information (e.g.
dates, times, types of service performed, the
supplier and employee involved, possibly some
notes as to the quality of services received, etc.)
9-20
Receiving Report
9-21
Vendor (Supplier) Invoice
9-22
Relational Tables Encompassing
Purchase Event
9-23
Acquisition/Payment Process Events
• Economic Decrement Events in the Acquisition Cycle
– Almost always is a Cash Disbursement event
• An economic decrement event whereby the enterprise
transfers ownership of cash (or equivalent) to a supplier
• Is usually symbolized by a check or disbursement voucher
document or data entry screen that summarizes the
information about the event (e.g date, dollar amount, supplier
to whom cash was disbursed, employee who authorized
the payment, acquisition or other event to which cash
disbursement applied, etc.)
• Resource is typically cash (a type-level resource – usually a
listing of cash accounts owned by the enterprise)
• Internal agents are usually cashiers, accounts payable clerks,
or other financing personnel
• External agents are usually suppliers or vendors
9-24
Disbursement Voucher
9-25
Relational Tables Encompassing Cash
Disbursement Event
9-26
Acquisition/Payment Process Events
• Economic Increment Reversal Events
– Events in which previous economic increment events are
reversed or negated
– Although similar in mechanics, such events are inherently
different from economic decrement events
• Giving something back that you had hoped would satisfy
your needs, even though you will receive back what you
gave in exchange, is not the same as giving something up
in exchange for something you want more
– Resources, Internal Agents, and External Agents are the
same as those for economic increment events
9-27
Purchase Return Event
• Economic event in which title (ownership) for goods previously
transferred from a supplier to the enterprise are transferred
back from the enterprise to the supplier
• Although a resource (or resource type) is decreased as a
result, the nature of purchase returns is different from other
economic decrement events. The substance of the event is
such that the original economic increment event is negated.
Thus we label such events as economic increment-reversal
events
• Is usually symbolized by authorized request to return, packing
list, and debit memorandum documents or data entry screens
that summarize information about the event (e.g. date, what
quantities of which products were returned to supplier, dollar
amount, etc.)
9-28
Request to Return
9-29
Packing List
9-30
Debit Memorandum
9-31
Relational Tables Encompassing
Purchase Return Event
9-32
Acquisition/Payment Process Relationships
• Fulfillment relationships
– Between Purchase Requisition and Purchase Order
events
– Between Purchase Order and Purchase (or Rental or
Service Acquisition) events
• Duality relationships
– Between Purchase (or Rental or Service Acquisition)
and Cash Disbursement (or Disbursement of Bartered
Goods/Services) events
• Reversal relationships
– Between Purchase and Purchase Return events
• Participation relationships
– Between each event and each internal and external
agent
9-33
Acquisition/Payment Process Relationships
• Proposition relationships
– Between Purchase Requisition event and Inventory (or
Inventory Type or Service Type)
• Reservation relationships
– Between Purchase Order, Rental Contract, or Service
Contract and Inventory (or Inventory Type or Service Type)
– Also between Purchase Order, Rental Contract, or Service
Contract and Cash
• Stock flow relationships
– Between Purchase (or Rental or Service Acquisition) and
Inventory (or Inventory Type or Service Type)
– Between Purchase Return and Inventory (or Inventory
Type)
– Between Cash and Cash Disbursement
9-34
Resource Query Types
• Detailed status information at one or more points
in time for each resource instance
• Detailed status information at one or more points
in time for only those resource instances meeting
specified criteria
• Summarized status information at one or more
points in time for all resource instances
• Summarized status information at one or more
points in time for only those resource instances
meeting specified criteria
9-35
Acquisition Cycle Resource Queries
• A list of each inventory item or item type normally stocked by an
enterprise
• A list of all inventory items or item types that possess certain
characteristics
• Quantity on hand of an inventory item type as of a specified date
• Total cost value of inventory on hand as of a specified date
• A list of all cash accounts owned by enterprise on a specified date
• Balance in a specific cash account as of a specified date
• Total balance in all cash accounts as of a specified date
• A list of general and administrative supply and service types for
which the enterprise maintains descriptive data
• A list of fixed assets owned by an enterprise
• Book value of a depreciable fixed asset owned by an enterprise
on a specified date
• Average age of an enterprise’s machinery on a specified date
9-36
Example Resource Tables
Cash
CashAccountID
Ca123501
Ca351235
Ca351327
Ca789125
Ca987654
AccountType
Checking
Petty
Petty
Savings
Imprest
checking
Location
DateAccountEstablished
1st Local Bank
Thursday, April 01, 2010
Onsite Thursday, April 01, 2010
Cashier
Onsite - Desk
CEO
Thursday, April 15, 2010
drawer
Assistant's
File
1st Local Bank
Thursday, April 22, 2010
Cabinet
1st Local Bank
Thursday, April 01, 2010
Operating Assets
Asset
Description
TagID
OA1
BuildingOffice/Warehouse
OA10 Manager
task chair
OA11 Task chair
OA12 Task chair
OA13 Task chair
OA14 Task chair
OA15 Toshiba tecra notebook
OA16 Dell optima desktop
OA17 Dell optima desktop
OA18 Dell optima desktop
OA19 Warehouse shelving
OA2
Property
OA20 Fax machine
OA3
Executive desk
OA4
Manager desk
OA5
Manager desk
OA6
Administrator desk
OA7
Administrator desk
OA8
Executive desk chair
OA9
Manager task chair
InventoryType
ItemID
Description
BIS1
Big Stuff
HUS1
Huge Stuff
LIS1
Little Stuff
MIN1
Miniature Stuff
TIS1
Tiny Stuff
TTP12
Tiara
Acquisition Acquisition
Asset
Date
Cost
Category
4/1/2010 $200,000.00 Buildings
4/10/2010
$350.00 Furniture
4/10/2010
$175.00 Furniture
4/10/2010
$175.00 Furniture
4/10/2010
$175.00 Furniture
4/10/2010
$175.00 Furniture
4/15/2010
$3,000.00 Computers
4/15/2010
$2,000.00 Computers
4/15/2010
$2,000.00 Computers
4/15/2010
$2,000.00 Computers
4/16/2010
$10,000.00 Fixtures
4/1/2010 $300,000.00 Land
4/17/2010
$400.00 Communication
sEquipment
4/10/2010
$2,000.00 Furniture
4/10/2010
$1,500.00 Furniture
4/10/2010
$1,500.00 Furniture
4/10/2010
$1,000.00 Furniture
4/10/2010
$1,000.00 Furniture
4/10/2010
$500.00 Furniture
4/10/2010
$350.00 Furniture
UnitOfMeasur Standard Cost List Price
Each e
$20.00
$50.00
Each
$30.00
$70.00
Box of 6
$36.00
$72.00
Box of 24
$56.00
$110.00
Box of 12
$48.00
$96.00
Each
$10.00
$25.00
Estimated Estimated IRSListed
LifeYrs
Salvage
Property
40 $20,000.00
No
7
$50.00
No
7
$25.00
No
7
$25.00
No
7
$25.00
No
7
$25.00
No
5
$300.00
Yes
5
$200.00
Yes
5
$200.00
Yes
5
$200.00
Yes
40
$0.00
No
0
$0.00
No
3
$0.00
Yes
10
$200.00
No
10
$100.00
No
10
$100.00
No
10
$100.00
No
10
$100.00
No
7
$50.00
No
7
$50.00
No
9-37
Query to list each operating assets
owned on a specific date
9-38
Query to list each operating assets
owned on a specific date
9-39
Query to identify computers owned on a
specified date
9-40
Event Query Types
• Detailed information about each event instance
– e.g., what happened, when and where did it happen, etc.
• Detailed information about each event instance that meets
specified criteria
– e.g. events of a specified type that occurred during a
specified time period or that occurred at a specified location
• Summarized information for all instances of an event type
for a specified time period
– e.g. total of the event instances during a specified time
period
• Summarized information for only those instances of an
event type for a specified time period that meet specified
criteria
– e.g. average dollar value of the event instances for a
specified location during a specified time period
9-41
Acquisition Cycle Event Queries
• Total number of purchase orders made during a
specified time period
• Total dollar amount for a specific purchase order,
general & administrative service and supplies
acquisition, operating asset acquisition, inventory
acquisition, cash disbursement, or purchase return
• Total or average dollar amount of all
acquisition/payment events of a specified type for one
or more specified time periods
• Seller’s tracking number for an expected purchase
event
• Date a purchase event occurred
9-42
Example Event Tables
Purchase Requisition (Instigation) Event
Purch
Maximum Budget Date
Purch
Recommended
FK
FK
FK
ReqID Date
for this purchase Needed SuperID AgentID SupplierID
R17
R18
R19
R20
R21
4/22/2010 $30,000
5/5/2010
5/6/2010
5/15/2010
5/18/2010
5/2/2010
5/23/2010
5/20/2010
5/25/2010
5/26/2010
E5
E5
E5
E5
E5
Purchase Order (Mutual Commitment) Event
Purchase OrderDate DateNeeded DollarTotal
OrderID
PO16
PO17
PO18
PO19
PO20
PO21
4/24/2010
5/5/2010
5/5/2010
5/6/2010
5/6/2010
5/16/2010
5/2/2010
5/8/2010
5/12/2010
5/10/2010
5/24/2010
5/24/2010
$28,450.00
E12
E12
E12
E12
E12
V7
V14
V7
V7
Purchase
FK
ReqID
Purchase
FK
AgentID
Supplier
FK
ID
R17
R18
R18
R19
R19
R20
E12
E12
E12
E12
E12
E12
V7
V14
V90
V14
V7
V14
Purchase (Economic Increment) Event
Receiving
ReportID
RR18
RR19
RR21
RR22
RR25
Date
4/30/2010
5/8/2010
5/10/2010
5/12/2010
5/12/2010
Dollar Receiving
FK
Amount ClerkID
$28,450.00 E111
$1,100.00 E111
$3,240.00 E111
$2,000.00 E111
$480.00 E111
SupplierID
V7
V14
V14
V7
V90
Cash Disbursement (Economic Decrement) Event
DisbVoucherID VoucherDate DollarAmount
39
5/15/2010
$746.57
40
5/25/2010
$28,450.00
41
5/29/2010
$398.12
FK
Vendor Invoice#
CheckNbr
41234
41235
41236
VI4167
821536
821983
VI5213
312353
CashAcctID
Ca123501
Ca123501
Ca123501
FK
FK
Invoice Cash DisbID
Amount
$28,450.00
40
$1,100.00
$3,240.00
$2,000.00
$480.00
FK
APClerkID
E36
E36
E36
FK
PayeeID
E23
V7
E41
Purchase Return (Economic Increment Reversal) Event
Purchase
Dollar Packing Debit Receiving
Dept
Shipping
FK
FK
FK
FK
ReturnID Date
Amount Slip# Memo# ReportID SupplierID SuperID ClerkID
PR3
5/17/2010 $480.00
22
3
RR25
V90
E5
E41
9-43
Query to identify date and dollar
amount of Purchase Order #18
Which table(s) do we need?
Purchase Order (Mutual Commitment) Event
Purchase OrderDate DateNeeded DollarTotal
OrderID
PO16
PO17
PO18
PO19
PO20
PO21
4/24/2010
5/5/2010
5/5/2010
5/6/2010
5/6/2010
5/16/2010
5/2/2010
5/8/2010
5/12/2010
5/10/2010
5/24/2010
5/24/2010
$28,450.00
Purchase
FK
ReqID
Purchase
FK
AgentID
Supplier
FK
ID
R17
R18
R18
R19
R19
R20
E12
E12
E12
E12
E12
E12
V7
V14
V90
V14
V7
V14
What is Access QBE?
Which relational algebra
operators apply?
Project, Select
What is SQL statement?
SELECT PurchaseOrderID, OrderDate,
DollarTotal FROM PurchaseOrder
WHERE PurchaseOrderID=18;
What is the result?
9-44
Agent Queries
• Detailed status information at one or more
points in time for each agent instance
• Detailed status information at one or more
points in time for only those agent
instances meeting specified criteria
• Summarized status information at one or
more points in time for all agent instances
• Summarized status information at one or
more points in time for only those agent
instances meeting specified criteria
9-45
Acquisition Cycle Agent Queries
• A list of all purchase agents, accounts payable
clerks, inventory clerks, or supervisors for an
enterprise
• A list of employees that possess certain
characteristics (e.g. all accounts payable clerks
who have a specified minimum fidelity bond
• A list of employees that live in a specified city or
state
• A list of all employee names and telephone
numbers for an emergency phone tree
9-46
Example Agent Tables
Shipping Clerk (Internal Agent)
ShippingClerkID Name
Address
Telephone DateOfBirth
E41
Amy Milano 8892 Eddy Ave. 555-9557 January 3, 1964
Department Supervisor (Internal Agent)
DeptSupervisorID Name
Address
Telephone DateOfBirth
E5
Patrick Wellesley 53125 Fenton Dr. 555-1112 March 4, 1958
Accounts Payable Clerk (Internal Agent)
APClerkID Name
Address
Telephone DateOfBirth
E36
Diane Bowersox 9115 Wolfgang Ct. 555-7244 September 15, 1963
Receiving Clerk (Internal Agent)
ClerkID Name
Address
E247
E251
Telephone DateOfBirth
Kenneth Barki 4312 Monticello Dr. 556-4891
Rita Barki
4312 Monticello Dr. 556-4891
April 14, 1945
May 22, 1948
Supplier (External Agent)
SupplierID Name
V7
Joe’s Favorite Vendor
V14
Reliable Rudy’s
V90
Trina’s Trinkets
Address
89056 Ransom Hwy.
34125 Michigan Ave.
1612 Myway Rd.
Telephone PerformanceRating
555-7655 Excellent
555-1199 Very Good
555-2424 Very Good
9-47
Identify Suppliers with Performance
Rating of “Very Good”
Which table(s) do we need?
Supplier (External Agent)
SupplierID Name
V7
Joe’s Favorite Vendor
V14
Reliable Rudy’s
V90
Trina’s Trinkets
Address
89056 Ransom Hwy.
34125 Michigan Ave.
1612 Myway Rd.
Telephone PerformanceRating
555-7655 Excellent
555-1199 Very Good
555-2424 Very Good
Which relational algebra
operators apply?
Select
What is SQL statement?
What is Access QBE?
SELECT *
FROM Supplier
WHERE PerformanceRating=“Very Good”;
What is the result?
9-48
Duality Relationship Query Types
• Identification as to whether a specified exchange is
completed
• Identification of completed exchanges for a specified time
period
• Identification of incomplete exchanges for a specified time
period
• Calculation of the amount of claims, e.g. prepaid expenses,
payables, unearned revenues, or receivables, either in total
or for a specified exchange event
• Calculation of the total or average length of the timing
difference(s) between the events involved in one or more
exchanges
9-49
Acquisition Cycle Duality Queries
• Calculation of the outstanding payable
balance for a purchase
• Calculation of total accounts payable at a
point in time
• Calculation of prepaid expenses at a point
in time
• Aging of accounts payable
• Calculation of the average number of days
it takes to pay vendor invoices
9-50
Example Duality & Reversal
Relationship Tables
Purchase (Economic Increment) Event
Receiving
ReportID Date
RR18
4/30/2010
RR19
5/8/2010
RR21
5/10/2010
RR22
5/12/2010
RR25
5/12/2010
Dollar Receiving
Vendor
FK
FK
Amount ClerkID SupplierID Invoice#
$28,450.00 E111
V7
VI4167
$1,100.00 E111
V14
821536
$3,240.00 E111
V14
821983
$2,000.00 E111
V7
VI5213
$480.00 E111
V90
312353
Invoice Cash
FK
Amount DisbID
$28,450.00
40
$1,100.00
$3,240.00
$2,000.00
$480.00
Cash Disbursement (Economic Decrement) Event
DisbVoucherID VoucherDate DollarAmount CheckNbr CashAcctIDFK APClerkIDFK
39
$746.57 41234
E36
5/15/2010
Ca123501
40
5/25/2010
$28,450.00 41235
41
5/29/2010
$398.12 41236
Ca123501
Ca123501
PayeeIDFK
E23
E36
V7
E36
E41
Purchase Return (Economic Increment Reversal) Event
Purchase
Dollar Packing Debit Receiving
Dept
Shipping
FK
FK
FK
FK
ReturnID Date
Amount Slip# Memo# ReportID
SupplierID SuperID ClerkID
PR3
5/17/2010 $480.00
22
3
RR25
V90
E5
E41
9-51
Querying for Accounts Payable
• Conceptually
– Dollar value of acquisitions of goods and services (except employee labor)
not yet paid in full
• Practically
– Total of acquisitions through balance sheet date minus total of cash
disbursements through balance sheet date that applied to acquisitions.
Also minus purchase returns/discounts through balance sheet date.
– MUST include ONLY ending date constraint (balance sheet items reflect
cumulative data from beginning of company through balance sheet date).
– Use acquisition date to determine which acquisitions to include.
– Use cash disbursement date and duality relationships to determine which
cash disbursements to include. Be sure to aggregate cash disbursements
that apply to the same purchase before subtracting from purchase amount
• Note: Acquisitions – Cash disbursements from Vendors is not acceptable as it is
theoretically less sound than using the duality relationships
– Likely need for outer join and Nz function in Access (for acquisitions with
no matching cash disbursements)
9-52
Accounts Payable Query Steps
9-53
Accounts Payable Query Steps
9-54
Accounts Payable Query Steps
9-55
Accounts Payable Query Steps
9-56
Accounts Payable Query Steps with Nz
9-57
Accounts Payable Query Steps with Nz
9-58
Stockflow Relationship Query Types
• What resources or resource types were
increased or decreased by an economic event?
• What quantity of a resource or resource type
was increased or decreased by an economic
event?
• What dollar value of a resource or resource type
was increased or decreased by an economic
event?
• When did an event increase or decrease a
specific resource or resource type?
• Where did an event increase or decrease a
specific resource or resource type?
9-59
Acquisition Cycle Stockflow Queries
•
•
•
•
•
•
•
•
Which inventory types were increased by a specific purchase event?
What quantity of each inventory type was increased by a specific
purchase event?
Which inventory types were decreased by a purchase return event?
What quantity of each inventory type was decreased by a specific
purchase return event?
What unit cost was charged for an inventory type on a specific
purchase event?
What unit cost was granted as credit for an inventory type on a
specific purchase return event?
What was the total dollar value of purchases for a specified time
period? (Note: if total purchase dollar amount is stored in the
purchase event table, then it is not necessary to use the stockflow
relationship to meet this information need)
What is the average dollar value of purchases of a specified
inventory type for a specified time period?
9-60
Querying for Inventory
Weighted Average Unit Cost
Tables to consider
Purchase (Economic Increment) Event
Receiving
ReportID
RR18
RR19
RR21
RR22
RR25
Date
4/30/2010
5/8/2010
5/10/2010
5/12/2010
5/12/2010
Dollar Receiving
Vendor
FK
FK
Amount ClerkID
SupplierID Invoice#
$28,450.00 E111
V7
VI4167
$1,100.00 E111
V14
821536
$3,240.00 E111
V14
821983
$2,000.00 E111
V7
VI5213
$480.00 E111
V90
312353
Invoice Cash
FK
Amount DisbID
$28,450.00
40
$1,100.00
$3,240.00
$2,000.00
$480.00
Stockflow1 Relationship (Purchase – Inventory Type)
PurchaseID ItemID PurchaseQuantity ActualUnitCost
RR18
RR18
RR18
RR18
RR19
RR21
RR22
RR25
BIS1
LIS1
HUS1
TIS1
MIN1
MIN1
BIS1
TTP12
100
200
150
300
20
60
100
48
$20.00
$35.50
$29.00
$50.00
$55.00
$54.00
$20.00
$10.00
InventoryType
ItemID
Description
BIS1
Big Stuff
HUS1
Huge Stuff
LIS1
Little Stuff
MIN1
Miniature Stuff
TIS1
Tiny Stuff
TTP12
Tiara
UnitOfMeasur Standard Cost List Price
Each e
$20.00
$50.00
Each
$30.00
$70.00
Box of 6
$36.00
$72.00
Box of 24
$56.00
$110.00
Box of 12
$48.00
$96.00
Each
$10.00
$25.00
9-61
Querying for Inventory Weighted
Average Unit Cost
9-62
Querying for Inventory Weighted
Average Unit Cost
9-63
Querying for Inventory Weighted
Average Unit Cost
9-64
Fulfillment Relationship Query Types
• Identification of unfulfilled commitments or instigation
events
• Identification of fulfilled commitments or instigation events
• Identification of commitment events that were not
preceded by instigation events, or identification of
economic events that were not preceded by commitment
events
• Calculation of length of time between instigation and
commitment events or between commitment and
economic events
• Identification of causes of commitments and/or of
economic events
• Identification of results of instigations and/or of
commitment events
9-65
Acquisition Cycle Fulfillment Queries
• Identification of unfilled purchase orders
• Identification of filled purchase requisitions
(i.e., those purchase requisitions that
resulted in purchase orders)
• Calculation of average number of days the
enterprise takes to fill purchase requisitions
for a given time period
• Identify the purchase order that
corresponds to a purchase
9-66
Calculation of Average Number of Days
to Fulfill Purchase Requisition
Tables to consider
Purchase Requisition
PurchReqID
Date
MaxBudget DateNeeded SupervisorID
R17
4/22/2010 forPurchas
$30,000.00
5/2/2010 E5
e
R18
5/5/2010
$1,400.00
5/23/2010 E5
R19
5/6/2010
$5,500.00
5/20/2010 E5
R20
5/15/2010
$200.00
5/25/2010 E5
R21
5/18/2010
$7,500.00
5/26/2010 E5
PurchaseAgentID
E12
E12
E12
E12
E12
Purchase Order
PurchaseOrderID OrderDate DateNeeded DollarTotal PurchaseReqID
PO16
4/24/2010
5/2/2010 $28,450.00 R17
PO17
5/5/2010
5/8/2010
$1,100.00 R18
PO18
5/5/2010
5/12/2010
$200.00 R18
PO19
5/6/2010
5/10/2010
$3,240.00 R19
PO20
5/6/2010
5/24/2010
$2,000.00 R19
PO21
5/16/2010
5/24/2010
$220.00 R20
PurchAgentID
E12
E12
E12
E12
E12
E12
RecommendedSupplier
V7
V14
V7
V7
SupplierID
V7
V14
V90
V14
V7
V14
9-67
Calculation of Average Number of Days
to Fulfill Purchase Requisition
9-68
Proposition Relationship Query Types
• What resources or resource types does the
instigation event propose to increase or decrease?
• What quantity of a resource or resource type is the
proposed increase or decrease for an instigation
event?
• When did an instigation event propose to increase
or decrease a specific resource or resource type?
9-69
Acquisition Cycle Proposition Queries
• Which inventory types were identified as needed
in a purchase requisition event?
• What unit cost was estimated for an inventory
type in a specific purchase requisition event?
• How many different times has a specified
inventory type been requisitioned during a time
period?
• How many different types of inventory were
requisitioned in a specific purchase requisition
event?
9-70
Query to calculate number of times an item has
been requisitioned during a time period
Tables to consider
Purchase Requisition
PurchReqID
Date
MaxBudget DateNeeded SupervisorID
R17
4/22/2010 forPurchas
$30,000.00
5/2/2010 E5
e
R18
5/5/2010
$1,400.00
5/23/2010 E5
R19
5/6/2010
$5,500.00
5/20/2010 E5
R20
5/15/2010
$200.00
5/25/2010 E5
R21
5/18/2010
$7,500.00
5/26/2010 E5
PurchaseAgentID
E12
E12
E12
E12
E12
RecommendedSupplier
V7
V14
V7
V7
PropositionPurchaseRequisitionInventoryType
PurchRequistionID
ItemID
QuantityNeeded EstimatedUnitCost
R17
BIS1
100
$20.00
R17
HUS1
150
$30.00
R17
LIS1
200
$36.00
R17
TIS1
300
$48.00
R18
MIN1
20
$56.00
R18
TTP12
20
$10.00
R19
BIS1
100
$20.00
R19
MIN1
60
$56.00
R20
TTP12
20
$10.00
R21
LIS1
200
$36.00
InventoryType
ItemID
Description
BIS1
Big Stuff
HUS1
Huge Stuff
LIS1
Little Stuff
MIN1
Miniature Stuff
TIS1
Tiny Stuff
TTP12
Tiara
UnitOfMeasur Standard Cost List Price
Each e
$20.00
$50.00
Each
$30.00
$70.00
Box of 6
$36.00
$72.00
Box of 24
$56.00
$110.00
Box of 12
$48.00
$96.00
Each
$10.00
$25.00
9-71
Query to calculate number of times an item has
been requisitioned during a time period
9-72
Reservation Relationship Query Types
• What resources or resource types is a commitment
event agreeing to increase or decrease?
• What quantity of a resource or resource type is a
commitment event agreeing to increase or
decrease?
• What dollar value of a resource or resource type is
a commitment event agreeing to increase or
decrease?
• When did an event commit to increase or decrease
a specific resource or resource type?
• Where did an event commit to increase or
decrease a specific resource or resource type?
9-73
Acquisition Cycle Reservation Queries
• Which inventory types does a specific commitment event
agree to increase?
• What quantity of each inventory type does a specific
commitment event agree to increase?
• What unit cost was quoted for each inventory type in a
specific commitment event?
• What was the total dollar value of purchase orders for a
specified time period? (Note: if total dollar amount is stored
in the purchase order event table, then it is not necessary to
use the reservation relationship to meet this information
need)
• What is the average dollar value of purchase orders of a
specified inventory type for a specified time period?
9-74
Participation Relationship Query Types
• Which agent(s) participated in a specified event?
• How many events of a specified type has a
specified agent participated?
• What is the total dollar value of events of a
specified type in which a specified agent has
participated for a specified time period?
• When did a specified event in which a specified
agent participated occur?
• Where did a specified event in which a specified
agent participated occur?
9-75
Acquisition Cycle Participation Queries
• From which supplier was a specific purchase made?
• By which purchase agent was a specific purchase order
placed?
• How many purchase orders did a specified purchase agent
make during a specified time period?
• What is the total (or average) dollar amount of purchases
made by each purchasing agent during a specified time
period?
• When was a specified purchase received, and by which
receiving clerk (include clerk’s id, name, and telephone
number)?
• To which supplier have the most purchase returns been
made?
9-76
Query for date and receiving clerk
associated with specific purchase
Tables to consider
Purchase
ReceivingReportID
RR18
RR19
RR21
RR22
RR25
Date
DollarAmount ReceivingClerkID
4/30/2010
$28,450.00 E247
5/8/2010
$1,100.00 E247
5/10/2010
$3,240.00 E247
5/12/2010
$2,000.00 E251
5/12/2010
$480.00 E247
Receiving Clerk
ReceivingClerkID
Name
E247
Kenneth Barki
E251
Rita Barki
SupplierID
V7
V14
V14
V7
V90
Address
4312
Monticello
Dr.
4312
Monticello
VendorInvoice InvoiceAmount CashDis
burseme
VI4167#
$28,450.00 40
ntID
821536
$1,100.00
821983
$3,240.00
VI5213
$2,000.00
312353
$480.00
Telephone
556-4891
556-4891
DateOfBirth
4/14/1945
5/22/1948
9-77
Query for date and receiving clerk
associated with specific purchase
9-78
Multiple-Relationship Acquisition
Cycle Queries
• Which purchase orders have been partially filled?
– requires stockflow, reservation, and fulfillmentpurchaseorder-purchase relationships
• What is the total dollar value of accounts payable
for a specified supplier at a point in time?
– requires duality, participation-supplier-purchase, and
participation-supplier-cash disbursement relationships
• On which requisitions has a specified vendor
been recommended as the recommended
supplier?
– requires proposition and participationpurchaserequisition-supplier relationships
9-79
Multiple-Relationship Acquisition
Cycle Queries
• Which purchase agent ordered a specified
inventory type from a specified supplier?
– requires reservation, participation-supplierpurchaseorder, and participationpurchaseagent-purchaseorder relationships
• What is the total dollar amount of
purchases of a specified inventory type
that have been made from suppliers in a
specified region?
– requires stockflow-purchase-inventory and
participation-supplier-purchase relationships
9-80
Accounts Payable per Supplier
Tables to consider
Purchase
ReceivingReportID
RR18
RR19
RR21
RR22
RR25
Date
DollarAmount ReceivingClerkID
4/30/2010
$28,450.00 E247
5/8/2010
$1,100.00 E247
5/10/2010
$3,240.00 E247
5/12/2010
$2,000.00 E251
5/12/2010
$480.00 E247
SupplierID
V7
V14
V14
V7
V90
VendorInvoice InvoiceAmount CashDis
burseme
VI4167#
$28,450.00 40
ntID
821536
$1,100.00
821983
$3,240.00
VI5213
$2,000.00
312353
$480.00
Cash Disbursement
DisbVoucherID VoucherDate DollarAmount CheckNumber
39
5/15/2010
$746.57 41234
40
5/25/2010
$28,450.00 41235
41
5/29/2010
$398.12 41236
CashAccountI APClerkID
D
Ca123501
E36
Ca123501
E36
Ca123501
E36
PayeeID
E23
V7
E41
Purchase Return
Purch
Date
Dollar Packing
Debit
Receiving SupplierID
Dept
Shipping
ReturnID
Amount
Slip#
Memo#
Report#
SupervisorID ClerkID
PR3
5/17/201 $480.00 22
3
RR25
V90
E5
E41
0
9-81
Accounts Payable per Supplier
Constrain
purchase date
and sum
purchase dollar
amount for
each supplier
9-82
Accounts Payable per Supplier
Join purchase
and cash
disbursement
tables and
constrain cash
disbursement
date
9-83
Accounts Payable per Supplier
Sum the cash disbursements by supplier
9-84
Accounts Payable per Supplier
Join purchase
and purchase
return tables;
Constrain
purchase return
date
9-85
Accounts Payable per Supplier
Sum purchase returns by supplier
9-86
Accounts Payable per Supplier
Combine purchases
and purchase
returns by supplier to
get unreturned
purchases
9-87
Accounts Payable per Supplier
Combine unreturned purchases and cash disbursements by supplier
to get unpaid purchases
Result for May 31, 2010
9-88
Summary
• We discussed the acquisition/payment process and how it
fits in at the value system and value chain levels
• We discussed the extended REA pattern at the business
process level
• We examined documents typically used to represent
events and discussed related resources and agents
• We examined examples of relational database tables for
the acquisition cycle and discussed data input into those
tables
• We systematically discussed types of queries for the
acquisition/payment process that may be needed to
support decision-makers in various functional areas
• We provided selected examples of queries of various
types
9-89
ENTERPRISE INFORMATION SYSTEMS
A PATTERN BASED APPROACH
Chapter 9
End of Chapter
McGraw-Hill/Irwin
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.