Chapter 6 - Purchase and payments business process. After reading this chapter, you should be able to: Describe the business activities that comprise the purchase and payment process, develop an activity model of the purchase and payment process using BPMN, understand and apply different activity modeling options.
Chapter Purchase and Payments Business Process Copyright © 2014 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education Learning Objectives • • • • • • LO#1 Describe the business activities that comprise the purchase and payment process LO#2 Develop an activity model of the purchase and payment process using BPMN LO#3 Understand and apply different activity modeling options LO#4 Develop business rules to implement controls for the purchase and payment process LO#5 Develop structure models for the purchase and payment process using UML class diagrams LO#6 Implement a relational database from the UML Class Diagram of the purchase and payment 6-2process LO# Review of Purchases and Payments Accounting 6-3 LO# Sunset Graphics Purchases Process Research prices and product availability Select the best price and availability combination and send a purchase order to the supplier Receive the items from the supplier (and record the purchase and accounts payable) Pay the supplier according to the credit terms 6-4 LO# Basic Purchases BPMN Activity Model The basic activity model implements the process steps 6-5 LO# Collaboration Model of the Purchases Process The collaboration model focuses on the message flows between the pools 6-6 Adding Swimlanes to Show Functional Responsibility Swimlane s show functional responsibil ities 6-7 LO# LO# Process Steps Business Rules Examples for Intention Purchases Partner Authority/Action Access Controls Application Controls Process Place Order Order products from reliable suppliers at the best available prices to meet required delivery time Manager approval required for orders > $5,000; Partner ordering products must not manage inventory Partners preparing purchase orders cannot modify product inventory records, receive items, or pay suppliers System must provide purchase order number control, default values, range and limit checks, and create audit trail Receive Items Record receipt of items promptly and accurately Partner receiving items must not be same partner that ordered the items Partners receiving items cannot modify purchase orders or inventory records; they cannot view purchase order 6-8 quantity ordered System must only allow partner to enter the number of items received, subject to range and limit checks on quantities received; date of receipt LO# Sunset’s Basic Purchases UML Class Models Purchase Orders are commitments to purchase from the supplier Receipts document the receipt of items from the supplier (when purchases recognized) Cash disbursements pay for one or more receipts 6-9 LO# Revised Purchases UML Class Diagram Purchase Orders and Receipts collapsed into one Purchases events Added Product Categories type image as defined in Chapter Added Supplier Categories type image to show Sunset Partner responsibility for Categories 6-10 LO# Implementing UML Diagram in a Database Database will contain tables to implement classes and linking table for the relationship between Purchases and Products 6-11 Posting Foreign Keys Example Partner Number posted to Purchases Post towards the * and away from the 1 Purchases Sunset Partner * * 1 Supplier Supplier Number posted to Purchases Foreign keys implement links for one-to-many relationships 6-12 Database Relationships Which relationship is missing? How would you implement that? 6-13 Did you notice the similarity between the sales process and the purchase process? 6-14 ... UML class diagrams LO #6 Implement a relational database from the UML Class Diagram of the purchase and payment 6- 2process LO# Review of Purchases and Payments Accounting 6- 3 LO# Sunset Graphics... Purchases Foreign keys implement links for one-to-many relationships 6- 12 Database Relationships Which relationship is missing? How would you implement that? 6- 13 Did you notice the similarity between... focuses on the message flows between the pools 6- 6 Adding Swimlanes to Show Functional Responsibility Swimlane s show functional responsibil ities 6- 7 LO# LO# Process Steps Business Rules Examples