ACCOUNTING INFORMATION SYSTEM DESIGN
FOR A REVENUE CYCLE
Zheng Wang
PROJECT
Submitted in partial satisfaction of
the requirements for the degree of
MASTER OF SCIENCE
in
ACCOUNTANCY
at
CALIFORNIA STATE UNIVERSITY, SACRAMENTO
SPRING
2009
ACCOUNTING INFORMATION SYSTEM DESIGN
FOR A REVENUE CYCLE
A Project
by
Zheng Wang
Approved by:
, Committee Chair
Yan Xiong, Ph.D.
Date
I
1
II,- Oq
A
ii
Student: Zheng Wang
I certify that this student has met the requirements for format contained in the University
format manual, and that this Project is suitable for shelving in the Library and credit is to
be awarded for the Project.
Monica Lam, Ph.D., Associate Dean for Graduate and External Programs
College of Business Administration
iii
Date
Abstract
of
ACCOUNTING INFORMATION SYSTEM DESIGN
FOR A REVENUE CYCLE
by
Zheng Wang
Accounting Information System (AIS) is an important system using modem information
technology resources together with traditional accounting controls and methods to provide
users the financial information necessary to manage their organizations.
In this project, Resource-Event-Agent diagram (REA) is used as a tool for conceptual data
modeling, and Data Flow Diagram (DFD) is used as a tool for process modeling.
The
simple REA and DFD Diagrams are used to explain what they are and how to design them.
Based on the nine-step design and implementation process, a sample accounting
information system is demonstrated for the revenue cycle of the Wale's Wholesaler. In the
example, REA model and DFD model for the revenue cycle are established first. Then
these two models are converted to Microsoft Access relational database using primary keys
iv
and foreign keys. In addition, Microsoft Access forms are designed for recording,
maintenance, and report processes in the revenue cycle.
Committee Chair
Yan Xiong, Ph.D.
Date:
-S IV.
0I'
I
v
I
TABLE OF CONTENTS
Page
List of Tables ........................................................
List of Figures ......................................................
viii
ix
Chapter
1. INTRODUCTION .......................................................
1
1.1 Purpose of This Project ......................................................
1
2. AIS, REA AND DFD OVERVIEW ......................................................
2
2.1 AIS Overview ......................................................
2
2.2 REA Overview ......................................................
4
2.3 DFD Overview ......................................................
6
3. SYSTEM DESIGN AND IMPLEMENTATION ............................................... 8
3.1 Business Overview ......................................................
8
3.2 Nine-step Process Design Overview ......................................................
9
3.3 Applying Event-oriented Modeling Approach ............................................. 9
STEP 1: Identify significant events ......................................................
STEP 2: Identify related resources ...................................................
10
... 10
STEP 3: Identify related agents ......................................................
II
STEP 4: Identify all relationships .......................................................
11
STEP 5: Specify the optionality and cardinality of relationships ..................... 12
STEP 6: Identify the attributes of events, resources, and agents ...................... 13
STEP 7: Identify the information processes .............................................. 15
STEP 8: Design the structure of the data repository ..................................... 18
vi
STEP 9: Microsoft Access Implementation ......................................
21
4. SUMMARY ......................................
28
References
29
........................................
vii
LIST OF TABLES
Page
1. Table 1 Inventory ......................................
18
2. Table 2 Cash ......................................
19
3. Table 3 Returned Merchandise ......................................
19
4.
Table 4 Sales Call/ Contact Customer ......................................
19
5. Table 5 Sales Order ......................................
19
6. Table 6 Distribution ......................................
19
7.
Table 7 Cash Receipts ......................................
20
8.
Table 8 Returns ......................................
20
9.
Table 9 Employee .................
20
10. Table 10 Customer .20
11. Table 11 Sales Items .21
12. Table 12 Return-Items .21
viii
LIST OF FIGURES
Page
1. Figure I A simple Accounting Information System .............................................. 2
2. Figure 2 A simple Data Flow Diagram .......................................................... 7
3.
Figure 3 REA Diagram for Wale's Wholesaler Revenue Process ............................ 15
4. Figure 4 Context Diagram for Wale's Wholesaler Revenue Process ....................... 16
5. Figure 5 Event Recording Level 0 DFD for Wale's Wholesaler Revenue Process ....... 17
6. Figure 6 Tables ...............................................................
18
7. Figure 7 Customer Table Design View .......................................................... 22
8.
Figure 8 Customer Table Datasheet View ..................................................... 23
9. Figure 9 Inventory Table ...............................................................
23
10. Figure 10 Relationship among Tables ......................................................... 24
11. Figure 11 Sales Order Form ...............................................................
25
12. Figure 12 Inventory Form ...............................................................
26
13. Figure 13 Employee Form ...............................................................
26
14. Figure 14 Customer Balance Query Design View ............................................ 27
15. Figure 15 Customer Balance Query ............................................................ 27
ix
1
Chapter I
INTRODUCTION
1.1 Purpose of This Project
The purpose of this project is to design an Accounting Information System (AIS) for Wale's
Wholesaler's business revenue cycle. Wale's Wholesaler is a hypothetical food and beverage
wholesaler that purchases goods in large lots from producers, breaks bulk, repacks and distributes
in small lots to local grocery stores.
In this project, Resource-Event-Agents (REA) is used as a tool to design logical data model for
Wale's Wholesaler, and Data Flow Diagram (DFD) is used as a tool to design logical process
model. REA and DFD diagrams are then mapped to relational tables and forms in a Microsoft
Access Database Management System (DBMS).
This project is completed under the direction of Professor Xiong, Yan. I appreciate her guidance
and helpful comments she's provided.
2
Chapter 2
AIS, REA AND DFD OVERVIEW
2.1 AIS Overview
An accounting information system (AIS) invented by esteemed professor Karen Osterheld is
the system of records a business keeps to maintain its accounting system. This includes the
purchase, sales, and other financial processes of the business. An AIS combines the study and
practice of accounting with the design, implementation, and monitoring of information systems.
Such systems use modem information technology resources together with traditional accounting
controls and methods to provide users the financial information necessary to manage their
organizations.
Figure I shows an example of the data inputs and information outputs from an accounting
information system.
Inputs
Processes
outputs
tdaatoiancialstatemefts
.
Accoun-ingSstem
invoices
receipts
amendments to data
-_ _
__
Figure 1: A simple Accounting Information System
f_
1
management infotation
L
_
_
_~~~~~~~A~
3
AISs cover all business functions from backbone accounting transaction processing systems to
sophisticated financial management planning and processing systems.
Financial reporting system starts at the operational levels of the organization, where the transaction
processing systems capture important business events such as normal production, purchasing, and
selling activities. These transactions are classified and summarized for internal decision making
and for external financial reporting.
Cost accounting systems are used in manufacturing and service environments. These allow
organizations to track the costs associated with the production of goods and/or performance of
services. In addition, the AIS can provide advanced analyses for improved resource allocation and
performance tracking.
Management accounting systems are used to allow organizational planning, monitoring, and
control for a variety of activities. This allows managerial-level employees to have access to
advanced reporting and statistical analysis. The systems can be used to gather information, to
develop various scenarios, and to choose an optimal answer among alternative scenarios.
The development of an AIS includes five basic phases: planning, analysis,
design,
implementation, and support. The time period associated with each of these phases can be as
short as a few weeks or as long as several years. The first phase is the planning of the project.
This entails determination of the scope and objectives of the project, the definition of project
responsibilities, control requirements, project phases, project budgets, and project deliverables.
The analysis phase is used to both determine and document the accounting and business processes
4
used by the organization. Such processes are redesigned to take advantage of best practices or of
the operating characteristics of modem system solutions. The design phase takes the conceptual
results of the analysis phase and develops detailed, specific designs that can be implemented in
subsequent phases. It involves the detailed design of all inputs, processing, storage, and outputs of
the proposed accounting system. The implementation phase consists of two primary parts:
construction and delivery. The support phase has two objectives: 1) to update and maintain the
AIS and 2) to continue development by continuously improving the business through adjustments
to the AIS caused by business and environmental changes.
2.2 REA Overview
Resources, Events, Agents (REA) is a model of how an accounting system can be reengineered
for the computer age. The REA model was first conceptualized in a 1982 Accounting Review
paper as a framework for building accounting systems in a shared data environment that
anticipated the collaborative information systems settings of the present, both within enterprises
and between enterprises. It describes a business as a set of economic resources, economic events
and economic agents as well as relationships among them.
The model's core feature was an object pattern consisting of two mirror-image constellations
that represented semantically the input and output components of a business process. The
REA acronym derives from that pattern's structure, which consisted of economic Resources,
economic Events, and economic Agents.
5
REA treats the accounting system as a virtual representation of the actual business. It creates
computer objects that directly represent real-world-business objects. There is a separate REA
model for each business process in the company. A business process roughly corresponds to a
functional department, such as sales, purchases, conversion or manufacturing, human resources,
and financing.
Use of the REA approach can yield: (Ir)more efficient operations by helping identify
non-value-added activities, by storing financial and nonfinancial data in the same central database,
and greater support for management decisions; (2) increased productivity through the elimination
of non-value-added activities; (3) competitive advantages.
The key elements of REA model are resources, events and agents. Economic resources are
defined by Ijiri [1975, pp 51-2] to be objects that (1) are scarce and have utility and (2) are under
the control of an enterprise. Cash and inventory are the example of economic resource. Economic
events are defined by Yu [1976, p 256] as 'a class of phenomena which reflect changes in scarce
means resulting from production, exchange, consumption, and distribution." Examples of
economic events are sale, purchase and cash receipts. Economic agents include persons and
agencies who participate in the economic events of the enterprise or who are responsible for
subordinates' participation, including internal agents and external agents. Employees, such as
salespersons, cashiers, are internal agents. The venders and customers are external agents.
There are many types of relationships in the REA framework: (1) stock-flow relationships, (2)
duality relationships, and (3) participation and control relationships. Relationships between
6
economic events and economic resources are called stock-flow relationships because they either
increase or decrease the resource-there is inflow or outflow of the resource as a result of the
event. In an economic exchange context, every resource increasing (decreasing) economic event
will eventually have a corresponding resource decreasing (increasing) economic event.
This
coupling between resource increasing and decreasing events is referred to in REA terms as a
duality relationship. Duality relationships link each increment in the resource set of the enterprise
with a corresponding decrement. (Ijiri, 1975, Ch.5). Increments and decrements must be members
of two different event entity sets: one characterized by transferring in (purchase or cash receipts)
and the other characterized by transferring out (sale or cash disbursement). Control relationships
are 3-way associations among (1) a resource increment/decrement (event), (2) an inside party, and
(3) an outside party. The responsibility relationships indicate that higher level units control and
are accountable for the activities of subordinates.
2.3 DFD Overview
A data-flow diagram (DFD) is a graphical representation of the "flow" of data through an
information system. It is one of the most commonly used systems-modeling tools. DFDs show
the flow of data from external entities into the system and how the data moved from one process
to another. They are composed of four simple components: processes, flows, stores, and
terminators. The first component of the DFD is known as a process. It shows a part of the system
that transforms inputs into outputs. The process is represented graphically as a circle. Its name
will describe what the process does. A flow is represented graphically by an arrow into or out of a
process. It is used to describe the movement of chunks, or packets of information from one part of
7
the system to another part. The store is used to model a collection of data packets at rest. The
notation for a store is two parallel lines. A terminator is graphically represented as a rectangle,
represent external entities with which the system communicates. Typically, a terminator is a
person or a group of people, such as customers. Figure 2 is a simple DFD.
Database
Input
System
tput
Figure2: A Simple Data Flow Diagram
Usually, the overall DFD is organized in a series of levels so that each level provides successively
more detail about a portion of the level above it. The context diagram shows the overall context
of the system and its operating environment and shows the whole system as just one process. It is
a top level data flow diagram, and only contains one process node that generalizes the function of
the entire system in relationship to external entities. The level 0 diagram shows the main
processes of the system. Each of these processes can be broken into further processes. A process
model will have one, and only one, level-I diagram. A level 0 diagram must be balanced with its
parent context level diagram. Each process in the level 0 diagram is decomposed into an
even-lower-level (level 1) diagram containing its subprocesses, then continues on the subsequent
subprocesses, until a necessary and sufficient level of detail is reached.
8
Chapter 3
SYSTEM DESIGN AND IMPLEMENTATION
3.1 Business Overview
Wale's Wholesaler (Wale) is a food and beverage wholesaler, located in the south Bay Area
California. It purchases goods in large lots from producers, breaks bulk, repacks and distributes in
small lots to local grocery stores. The revenue process of Wale's Wholesaler is very simple and
classic. Upon employment each salesperson is assigned to serve a separate group of customers. When
customer data are initially entered into Wale's information system, the customer is immediately
assigned to a salesperson. The new salesperson may works with a senior salesperson for a period. The
salespersons contact customers including potential customers by call or personal visits. These
contacting may get orders from customers. The sales order is transmitted to distributing team. The
distribute clerks distribute merchandise from warehouse to customers. One distribution may
contain one or several sales. One sales order may be distributed more than once if the items
ordered are not currently in stock. Then cashiers collect accounts receivables. Although the vast
majority of cash receipts come from customers (any particular cash receipt would be from only one
customer) for sales, some cash receipts come from other sources (e.g., bank loans). For this project,
we assume that all cash receipts are from customers. Every cash receipt is processed by exactly one of
Wale's several cashiers and is deposited into one of Wale's bank accounts. Some merchandise may
be returned for some reason. The return clerks process the return and issue allowance.
The key events relating to this revenue processes can be summarized as following:
9
* Contacting existing and potential customers
* Executing sales orders
* Distributing merchandise to customers
* Collecting payments from customers
* Accepting returns and granting allowances to customers
3.2
Nine-Step Process Design Overview
STEP 1: identify significant events (what is occurring?).
STEP 2: identify related resources (what is being used/obtained?).
STEP 3: identify related agents (who is involved?).
STEP 4: identify relationships.
STEP 5: specify the optionality and cardinality of relationships.
STEP 6: identify the attributes of events, resources, and agents.
STEP 7: identify the information processes.
STEP 8: design the structure of the data repository.
STEP 9: implement the design.
As a result of applying the first eight steps, we will have a REA diagram, context diagram and a
level 0 DFD, and a set of tables. Then in step 9, we use Microsoft Access to implement a database
oriented revenue system.
3.3
Applying event-oriented modeling approach
10
Let's now specify a detailed process of developing a REA model and related set of DFDs by
using the nine-step modeling approach.
Step 1: Identify significant events
What is occurring is the significant event in the business cycle. The significant events related to
revenue processes in Wale's Wholesaler include: (1) Contacting existing and potential customers,
(2) Taking sales orders from customers, (3) Distributing ordered merchandise to customers, (4)
Collecting account receivables from customers after merchandise are distributed to them and (5)
Processing returns from customers and allowances to customers. In a REA diagram, the events
entities should be arranged in the middle with the earliest event at the top and the last at the
bottom.
Step 2: Identify related resources
When we consider the resource, we are looking for what is being used or obtained? Resources
typically have an "asset" connotation, such as inventory, cash. It's possible that there are multiple
resources associated with a single event. In this project there are three related resources:
inventory merchandise, cash and returned merchandise. Inventory is not a classical resource in
"sales call" event, but the main purpose to contact costumers is to get inventory sold. Inventory
decreases as a result of "sales order" event. Cash receipt leads to cash increase. The returned
merchandise is a result of "return and allowance" event. In the REA diagram, resources are drawn
11
to the left of events. A label is used to describe the relationship between the resource and the
event.
Step 3: Identify related agents
Agents are those who are involved in the business process. Agents could be within or outside the
organization, internal or external. Customers are the main external agents in the revenue process.
Customers are contacted by salesperson, sales orders are made to customers, and merchandises
are distributed to customers. The company receives returns and collects cash from customers.
Internal agents included in the project are salesperson, distribution clerk, cashiers and return clerk.
Salespersons contact the existing customers and the potential customers and take the sales orders.
Distribution clerks distribute the ordered merchandise. Cashiers collect accounts receivables.
Return clerks accept and process returns and allowance. There are also other employees in the
company, such as purchase representative, receiving clerks. But they are not involved in business
revenue process. However, all employee data would be stored in one employee table. In the REA
diagram, agents are drawn to the right of the events and a label descriptive of the relationship
between the agent and the event is used.
Step 4: Identify all relationship
The relationship between the events, resources, and agents identified in step1 to 3 must be
specifically identified. The "inventory" resource is related to the "salesperson" and "customers"
agents through the "contact customers" and "sales order" events. The "inventory" resource is also
12
related to the "distribution clerks" and "customers" agents through the "distribution" event. The
"cash" resource is related to the "cashiers" and "customers" agents through the "cash receipts"
event. The "returned merchandise" resource is related to the "returns clerks" and "customers"
agents, through the "return and allowance" event. There is no direct relationship between
inventory and cash resources. Returned merchandise represents inventory that is sold early but is
returned later for all kinds of reasons. Not all inventory sold would be returned by customers.
There is no direct relationship between any two agents. There are interrelationships between
events. "Contact customer" event may result in a "sales order" event. The delivery of
merchandise ordered is a relationship between "sales order" event and "distribution" event. The
payment of distributed merchandise directly connects the "distribution" and "cash receipts"
events. There is also a direct relationship between "distribution" and "return and allowance"
events, for the merchandise delivered might be returned for any reason.
Step 5: Specify optionality and cardinality
A basic diagram will result from application of the first four steps. Now we can expand the basic
diagram into an REA diagram by adding the optionality and cardinality of relationships. A
salesperson might have no customer contacts or have many customer contacts. Each customer
contact must be performed by at least one salesperson (two or more salespersons may visit
customers together). Each contact may talk about many inventory items, or none (some contact
might for other reasons). Each contact may result in one or more sales order. It's also possible
there is no sales order at all. Every sales order comes from one or several contacts. The loyal
customers may call salesperson to place orders without contact. One customer may have either
13
one or many sales orders or no orders. One salesperson can take more than one sales orders or no
order (new salesperson). A sales order must be placed by one customer and taken by one
salesperson. Every sales order may have at least one distribution. It is possible that the items
in-stock are not enough to fulfill one order. That will result in two or more distributions. Each
distribution may have at least one order. Sometimes, Wale combines two orders in one
distribution. Each distribution may have at least one inventory item. One type of inventory can be
on many distribution or no distribution (the item is never sold). Every distribution is exactly
distributed by one clerk, and one clerk can deliver many distributions, or none (new hired clerk).
A customer may be related to many cash receipts and every cash receipt is associated with one
customer. One cash receipt is related to at least one distribution, and one distribution has at least
one cash receipts. One cash receipt is collected by exactly one cashier, but one cashier can have
many cash receipts or none (new cashier). A customer may have one or more returns, but one
return is made by exactly one customer. Every return clerk may process many returns, or none
(new clerk). However, every return is taken by exactly one return clerk. A distribution may result
in many returns or no return. A customer may return many items from different distributions. So
one return may related to many distributions. One returned merchandise must relate to at least one
return.
Step 6: Identify the attributes of events, resources, and agents.
Each resource, event and agent has a number of attributes. Attributes related to the "inventory"
resource include item number, price for sale, quantity on hand, reorder point, item name and
description. The attributes for the "returned merchandise" have a little different, including item
14
number, name, quantity returned, reason for return. For cash resource, it is necessary to record
account number, bank name and current balance.
Regarding the "contact customers" event, it is necessary to record the contact date, time, the
salesperson who made the contact, the customer to whom the contact was made, and the contact
result. The attributes of the "sales order" event include sales order number, date, items ordered
(name, price, quantity), salesperson who takes the order and customer who places the order. For
distribution events, the attributes include sales order number, the name and quantity distributed,
date, distribution clerk. The "cash receipts" event has following attributes: Check number,
customer, amount, date and cashier who make the receipt. Regarding the "returned merchandise"
event, it is necessary to record the customer who makes the return, date, returned item and
quantity, reason for return, returns clerk who accept the returns. It is also important to record the
distribution number that the returned item is related to.
All internal agents have the same attributes, including employee number, name, hired date,
birthday, address, telephone number, salary and the department. The customers' attributes include
customer number, name, contact information, account balance, and the credit limits.
Attributes can be more clear by using tables in Figure 4.
Based on the above six steps, the REA diagram can be constructed now. For ease of exposition,
the Attributes are omitted. Resources are shown in the left column, events are shown in the
middle, and agents are shown in the right column. The "O" indicates an optional relationship. The
15
"I" indicates a mandatory participate relationship. The "N" indicates the "many" relationship.
Figure 3: REA Diagram for Wale's Wholesaler Revenue Process
Step 7: Identify information processes.
Each significant event will need a recording process. Contact customers, sales orders, distribution,
cash receipts and returns and allowance are the events in this project requiring recording
information processes. Inventory, cash and returned merchandise are resource entities requiring
16
maintenance information processes. Customers and employees are the agent entities requiring
maintenance information processes. There are a lot of documents and reports that must be
generated through a reporting process, such as sales invoice, distribution documents, receipts of
cash collection and confirmation of returns and allowances.
The entire system can be view as one overall business revenue process. Inputs to process are
received from customers and employees. Outputs of system, information about order
acknowledge, receipts, credit-memos, go to customers. Based on this high level event, a context
diagram can be created as shown below.
I Customers
items wantee
order
ditibt
UG~istribution
|
details i
CollecIton
| Clerk
9~~~~~
|Returns
w~~~~elails
clerk|
Figure 4: Context Diagram for Wale's Wholesaler Revenue Process
17
The context diagram only shows input to and output from the overall system. A level 0 DFD can
show further details about process. In particular, recording process Level 0 DFD should be
constructed for the events on the REA diagram, maintenance process Level 0 DFD should be
constructed for all resources and agents on the REA diagram, and reporting process Level 0 DFD
should be constructed for all reports to be generated. These Level 0 DFDs show the specific steps
involved in the overall process and the data stores accessed and updated. Figure 5 is the recording
process Level 0 DFD for the Wale's Wholesaler revenue process.
I Satfsersons I
Cumtomei table
Iv
Order
Contact
Add
1111
Returnetd
maIUhandise table
Relums asnd
allowances table
Figure 5: Event Recording Level 0 DFD Diagram for Wale's Wholesaler Revenue Processes
18
Step 8: Design the structure of the data repository
Now, we will convert the above REA diagram to relational tables-designing the data repository.
Following is a quickly review of the conversion rules:
(I) A separate table is created for each entity,
(2) Attributes are created for each entity and the primary key in each entity is identified,
(3) All optional relationships are treated as mandatory many relationships,
(4) The primary key of the entity on the "one" side of a relationship is posted to the table of the
entity on the "many" side of a relationship
(5) A separate table is created for the relationship itself for entities participating in a many-to-many
relationship with the primary key of each table being posted to the new relationship table to form a
composite key. (Advanced System Analysis &Design, Chapter 5)
Mechanically applying the conversion rule, we get the following tables.
Figure 6: Tables
Table 1: Inventory
Attributes
Item ID, Name, Description, Price, Quantity, Reorder points
Primary Key
Item ID
Foreign Key
Table 2: Cash
19
Attributes
Account Number, Bank, Balance
Primary Key
Account Number
Foreign Key
Table 3: Returned Merchandise
Attributes
Item ID, Name, Description, Reason for return, Quantity
Primary Key
Item ID
Foreign Key
Table 4: Sales Call/Contact customer
Attributes
Contact ID, Date, Time, Employee ID, Customer ID, Result
Primary Key
Contact ID
Foreign Key
Employee ID, Customer ID
Table 5: Sales Order
Attributes
Sales Order ID, Date, Item ID, Employee ID, Customer ID, Item Quantity
Primary Key
Sales Order ID
Foreign Key
Item ID, Employee ID, Customer ID
Table 6: Distribution
Attributes
Distribution ID, Employee ID, Customer ID, Sales order ID, Date, Item ID,
Quantity
20
Table 7: Cash Receipts
Attributes
Check Number, Customer ID, Employee ID, Amount, Date
Primary Key
Check Number
Foreign Key
Customer ID, Employee ID
Table 8: Returns
Attributes
Returns ID, Item ID, Quantity, Reason, Date, Distribution ID, Customer ID,
Employee ID
Primary Key
Returns ID
Foreign Key
Item ID, Distribution ID, Employee ID, Customer ID
Table 9: Employee
Attributes
Employee ID, Name, Date Hired, Contact Information, Gender, Date of Birth,
Salary, Department
Primary Key
Employee ID
Foreign Key
Table 10: Customer
Attributes
Customer ID, Name, Discount Term, Credit Limit, Contact Information,
21
Balance
Primary Key
Customer ID
Foreign Key
Table 11: Sales-Items
Attributes
Sales Order ID, Item ID, Quantity
Primary Key
Sales Order ID, Item ID
Foreign Key
Table 12: Return-Items
Attributes
Return ID, Item ID, Quantity returned, Reason for return
Primary Key
Return ID, Item ID
Foreign Key
Step 9: Microsoft Access implementation
Now we can implement the above design by using Microsoft Access.
1. Create tables, designate the primary key
The first step in the implementation process is to create tables and designate the primary key. By
Double-click on "create table on design view", we get a table, then define each field.
Following
22
are screen shots from Microsoft Access. Figure 7 and 8 are the design view and datasheet view of
Customer table. Figure 9 is the datasheet view of Inventory.
v
Customer ID
Name
_
_
jText
Text
Currency
Text
Balance
Address
__
_
City__ ____ ___ Text_____
Text
jState
Text
_
_ipo_
'Text
Telenhone
Text_____
_
Contact Person
_Number____
_
1-VXCredit Limit
___ _ ____Text
Term__ __
_.
Field
Size
____
format
Inp t Mask
__
___
'~Caption_
Validation Text
___
Required_
Allowi Zero Length__
Indexed
Unicode Compression
_
IME Mode
i~S-entence Mod e
_
gs_
____
_
__
_____
_
Default Value ________
Validation Rule__
it
.....
-
___
_
__
No
_______
Yes
_
_____
_
'Yes (No Duplicates
,Yes
On
.____
Figure 7: Customer Table Design View
_
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one
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_
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201 Ponetory Ave. Santa Clara CA
CA
10855 Western Ave ,San Jose
1970 Mission Blvd Santa Clara CA
CA
50505 Stevens Creel Cupertino
905
94086
95120
94087
95051
95123
95050
95014
Figure 8: Customer Table Datasheet View
C 70002
LE70003
70004
'
S 70005
E 70006
U 70007
I_70008
f 70009
I70010
1.50
_Coca Cola Classical Soda 2 .
Arizona Arnold Iced Tea 42 - $_1.00
$6.50
Aquafina Purified Water 24Heinz Easy Squech ketchuip I _ S259.
$3.59
Cheetos Crunchy 13 Oz
$3.00
_ Lays Classic 11 Oz
Bud Light Lime Beer 12-12 1 $13.49
$4. 49
Kelloggers Nutrigrain Chen_
$5.59
Carnation Instant breakfast
$3.59 .
General Kills cheerios Cere
_
1000
1000
100
500
1000
1000
500
1000
1000
1000
_
lOo Coca Cola $1.20
100 Arizona-_ $0. 70$6.00
10 Aquafina
$2.19
,50 Heinz
$3.20
100 Cheetos
50
100
50 Bud Light $12.00
100 Kelloggers $4.00
100 Carnation $4. 49
$3.00
1OO Cheerios
Figure 9: Inventory Table
2. Establish relationships between tables
After all the tables are created, we have to establish the relationship between these tables. Figure
8 shows the relationships of tables in our project. It maps to the REA diagram: the resource tables
in the left, the event tables in the middle and the agent tables in the right. The tables are
interrelated through a series of one-to-many relationships.
24
Figure 10: Relationship among Tables
Based on the above table structure, we can consider the various information processes involved
(i.e., recording, maintenance, reporting processes) and how they are implemented in Microsoft
Access. Step 3 is related to the recording and maintaining information processes. Step4 is related
to the reporting process.
3. Create forms
In this project, there are five significant events: contact costumer, sales order, distribution, cash
receipt and returns and allowance. For each event, a recording process database form is required.
25
The "Sales Order Form" shown below will be used to record information about the sales order
event. This form maps to process 2.0 (record sales order) in the Level 0 DFD .
Sals Order ID
>
Date
01/28/200
CustomerID
4001
Salesperson ID
G001
_
Sales-Item
i
I
Figure 11: Sales Order Form
Figure 12 and 13 are single table database forms. These forms related to maintaining information
process. Maintaining processes will be needed for each resource and agent entity on the REA
diagram. Figure 11 and 12 only show one resource (inventory) and one agent (employee). Each
form can be used to add, delete or update information about inventory and employee.
26
_I
~~~~~~~~~~~~~~~
I
Item ID
Name
C1ColaoClassicalSoda2L '.
t
Sates Price
$1.50
u 1000
Quantity
E
Reorder point
Vendor
100
Coca Cola
$1.20 $
Cost
Figure 12: Inventory Form
Employee ID
'lmi
Name
Alice Brooks
l077Colkmbia Street
Address
-an
Jose
City
State
HiredDate
-
ICA
Zip
_
_9512
Phone nrnber
i408-555-1232
Gender
F
-
$36,0r0000
Salary
4/23A19T
Date of Birth
Commission rate
l
_
_
_
Figure 13: Employee Form
4. Create queries and report for all information processes
'6
6
27
Accounting and other non-finance reports are generated through queries in Access. The reporting
process merely extracts data from one or more tables to provide the information that user required.
For example, we want to get a list of customers whose account balance is greater than $2000. A
query can be performed on the Customer table by specifying a criteria on the Account Balance
field. The following figure 14 and 15 show the Access query design view and the report for the
example.
Customer ID
|
m
_
Namem
Account Balance
Address
i.Custr
C ' B
E
st~
g
Cus ~en-__
Sort,4Ascendirn
_D
N _e
Accounlt 5a'Bsace
Custca
-----
_
Cuseha r
~~~=2000
__
Figure 14: Customer Balance Query Design View
|ustomer
_
_
__
II I
Name
!Snack shop
|=
4003
4
4006
_
4007
14008
_
"Cash and Carry Mart
Disks Shop
_
_
_Korea Market
Dasah market
_
_
_
_
.
Figure 15: Customer Balance Query
IAccount BaLanceIg
$2,900.00
$_3,500.
00
$2,944.00
I
$2, 88600
_
_
_
$5,879.00
_
28
Chapter 4
SUMMARY
This project presented a database view of business revenue cycle. An overview of related
business processes was first presented. A logical data model was then developed using the REA
approach. Applying the conversion rules, the REA model was converted to relational tables. From
a process modeling perspective, both a context diagram and a Level 0 data flow diagram (DFD)
were constructed. An Access implementation of the design was then demonstrated. Tables and
the relationships between tables in Access were described. A variety of Access forms for
implementing recording, maintaining, and reporting processes were also shown. Finally, the
process of generating a non-accounting report was shown. Using Access queries, listing of
customers with an account balance greater than $2000 was generated.
29
REFERENCES
Uday S. Murthy, Ph.D., ACA. Advanced System Analysis & Design.
McCarthy, W.E. 1982.
The REA accounting model: A generalized framework for accounting
systems in a shared data environment. The Accounting Review (July):
McCarthy, W.E.
554-77.
2003. The REA Modeling Approach to Teaching Accounting Information
Systems. Issues in Accounting Education: Vol. 18, No.4 November 2003 pp.4 2 7 - 4 4 1
James A. Hall
Accounting Information Systems, 4h Edition
IDG's S-D visual Series
Master Microsoft Office 2000 Visually
http://en.wikipedia.org/wiki/Resources, Events, Agents
http://en.wikipedia.org/wiki/Dataflowdiagram
http://openleam.open.ac.uk/mod/resource/view.php?id= 161611
http://www.enotes.com/business-finance-encyclopedia/accounting-information-systems
http://yourdon.com/strucanalysis/wiki/index.php?title=Chapter 9