Bài giảng Enterprise information systems - Chapter 9: The Acquisition/Payment Business Process

Chapter 9The Acquisition/Payment Business ProcessChapter Learning ObjectivesIdentify activities and documents common to acquisition/payment business processes for various enterprisesIdentify the components of the REA ontology in the acquisition/payment business processExplain how the acquisition/payment business process fits into an enterprise’s value systemExplain how the acquisition/payment business process fits into an enterprise’s value chainCreate a REA business process level model for an enterprise’s acquisition/payment business processIdentify common information needs within the acquisition/payment processCreate queries to meet common information needs in the acquisition/payment process2Acquisition/Payment Process in an Enterprise Value System3Acquisition/Payment Business Process in Enterprise Value ChainsPartial value chain for a manufacturerPartial value chain for a distributor4REA Acquisition/Payment Business Process Level Pattern5REA Acquisition/Payment Business Process Level Pattern: Operating Assets6Acquisition/Payment Process EventsInstigation Events in the ExpendituresAre usually internally instigated; triggered by an identified needExternal 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 suppliersTypically 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 sufficient7Purchase/Requisition EventPurchase Requisition EventAn 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 departmentIs 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.)8Purchase Requisition9Relational Tables Encompassing Purchase Requisition event10Acquisition/Payment Process EventsMutual Commitment Events in the Acquisition/ Payment ProcessInvolve the enterprise and an external business partner agreeing to exchange resources at a defined future timeDon’t always happen at a discrete point in time; often involves a series of activitiesInternal agents are usually purchasing agentsExternal agents usually are suppliersTypically 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 sufficientIdeally enterprises would like to be able to trace mutual commitment events to the instigation events that triggered them11Purchase Order EventA mutual commitment event whereby a supplier agrees to provide goods to the enterprise and the enterprise agrees to pay an ascertained price for those goodsIs 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.)12Rental Order EventA 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 priceIs 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.)13Service Order EventA 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 enterpriseIs 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.)14Purchase Order15Relational Tables Encompassing Purchase Order Event16Acquisition/Payment Process EventsEconomic Increment Events in the Acquisition CycleRepresent 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 activitiesResources vary for different types of businessesInventory (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 clerksExternal Agents are typically suppliers or vendors17Purchase (aka Acquisition) EventEconomic 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)18Rental Acquisition EventEconomic 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 priceUsually occurs over an extended period of time, rather than occurring at a single point in timeIs 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.)19Service Acquisition EventEconomic increment event in which a supplier performs one or more types of service for the enterpriseMay occur over a period of time or may be performed at a single point in timeIs 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.)20Receiving Report21Vendor (Supplier) Invoice22Relational Tables Encompassing Purchase Event23Acquisition/Payment Process EventsEconomic Decrement Events in the Acquisition CycleAlmost always is a Cash Disbursement eventAn economic decrement event whereby the enterprise transfers ownership of cash (or equivalent) to a supplierIs 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 personnelExternal agents are usually suppliers or vendors24Disbursement Voucher25Relational Tables Encompassing Cash Disbursement Event26Acquisition/Payment Process EventsEconomic Increment Reversal EventsEvents in which previous economic increment events are reversed or negatedAlthough 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 moreResources, Internal Agents, and External Agents are the same as those for economic increment events27Purchase Return EventEconomic event in which title (ownership) for goods previously transferred from a supplier to the enterprise are transferred back from the enterprise to the supplierAlthough 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 eventsIs 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.) 28Request to Return29Packing List30Debit Memorandum31Relational Tables Encompassing Purchase Return Event32Acquisition/Payment Process RelationshipsFulfillment relationshipsBetween Purchase Requisition and Purchase Order eventsBetween Purchase Order and Purchase (or Rental or Service Acquisition) eventsDuality relationshipsBetween Purchase (or Rental or Service Acquisition) and Cash Disbursement (or Disbursement of Bartered Goods/Services) eventsReversal relationshipsBetween Purchase and Purchase Return eventsParticipation relationshipsBetween each event and each internal and external agent33Acquisition/Payment Process RelationshipsProposition relationshipsBetween Purchase Requisition event and Inventory (or Inventory Type or Service Type)Reservation relationshipsBetween 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 CashStock flow relationshipsBetween 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 Disbursement34Resource Query TypesDetailed status information at one or more points in time for each resource instanceDetailed status information at one or more points in time for only those resource instances meeting specified criteriaSummarized status information at one or more points in time for all resource instancesSummarized status information at one or more points in time for only those resource instances meeting specified criteria 35Acquisition Cycle Resource QueriesA 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 dateTotal cost value of inventory on hand as of a specified dateA list of all cash accounts owned by enterprise on a specified dateBalance in a specific cash account as of a specified dateTotal balance in all cash accounts as of a specified dateA list of general and administrative supply and service types for which the enterprise maintains descriptive dataA list of fixed assets owned by an enterpriseBook value of a depreciable fixed asset owned by an enterprise on a specified dateAverage age of an enterprise’s machinery on a specified date36Example Resource Tables37Query to list each operating assets owned on a specific date38Query to list each operating assets owned on a specific date39Query to identify computers owned on a specified date 40Event Query TypesDetailed 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 locationSummarized information for all instances of an event type for a specified time period e.g. total of the event instances during a specified time periodSummarized 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 period41Acquisition Cycle Event QueriesTotal number of purchase orders made during a specified time periodTotal dollar amount for a specific purchase order, general & administrative service and supplies acquisition, operating asset acquisition, inventory acquisition, cash disbursement, or purchase returnTotal 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 eventDate a purchase event occurred 42Example Event Tables43  Which table(s) do we need?Query to identify date and dollar amount of Purchase Order #18Which relational algebra operators apply?What is SQL statement?Project, SelectSELECT PurchaseOrderID, OrderDate, DollarTotal FROM PurchaseOrderWHERE PurchaseOrderID=18;What is Access QBE?What is the result?44Agent QueriesDetailed status information at one or more points in time for each agent instanceDetailed status information at one or more points in time for only those agent instances meeting specified criteriaSummarized status information at one or more points in time for all agent instancesSummarized status information at one or more points in time for only those agent instances meeting specified criteria45Acquisition Cycle Agent QueriesA 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 stateA list of all employee names and telephone numbers for an emergency phone tree 46Example Agent Tables47Identify Suppliers with Performance Rating of “Very Good”Which table(s) do we need?Which relational algebra operators apply?What is SQL statement?SelectSELECT * FROM Supplier WHERE PerformanceRating=“Very Good”;What is Access QBE?What is the result?48Duality Relationship Query TypesIdentification as to whether a specified exchange is completedIdentification of completed exchanges for a specified time periodIdentification of incomplete exchanges for a specified time periodCalculation of the amount of claims, e.g. prepaid expenses, payables, unearned revenues, or receivables, either in total or for a specified exchange eventCalculation of the total or average length of the timing difference(s) between the events involved in one or more exchanges 49Acquisition Cycle Duality QueriesCalculation of the outstanding payable balance for a purchase Calculation of total accounts payable at a point in timeCalculation of prepaid expenses at a point in timeAging of accounts payableCalculation of the average number of days it takes to pay vendor invoices 50Example Duality & Reversal Relationship Tables51Querying for Accounts PayableConceptuallyDollar value of acquisitions of goods and services (except employee labor) not yet paid in fullPracticallyTotal 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 amountNote: Acquisitions – Cash disbursements from Vendors is not acceptable as it is theoretically less sound than using the duality relationshipsLikely need for outer join and Nz function in Access (for acquisitions with no matching cash disbursements)52Accounts Payable Query Steps53Accounts Payable Query Steps54Accounts Payable Query Steps55Accounts Payable Query Steps56Accounts Payable Query Steps with Nz57Accounts Payable Query Steps with Nz58Stockflow Relationship Query TypesWhat 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?59Acquisition Cycle Stockflow QueriesWhich 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? 60Querying for Inventory Weighted Average Unit CostTables to consider61Querying for Inventory Weighted Average Unit Cost 62Querying for Inventory Weighted Average Unit Cost 63Querying for Inventory Weighted Average Unit Cost 64Fulfillment Relationship Query TypesIdentification of unfulfilled commitments or instigation eventsIdentification of fulfilled commitments or instigation eventsIdentification of commitment events that were not preceded by instigation events, or identification of economic events that were not preceded by commitment eventsCalculation of length of time between instigation and commitment events or between commitment and economic eventsIdentification of causes of commitments and/or of economic eventsIdentification of results of instigations and/or of commitment events 65Acquisition Cycle Fulfillment QueriesIdentification of unfilled purchase ordersIdentification 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 periodIdentify the purchase order that corresponds to a purchase 66Calculation of Average Number of Days to Fulfill Purchase Requisition Tables to consider67Calculation of Average Number of Days to Fulfill Purchase Requisition 68Proposition Relationship Query TypesWhat 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? 69Acquisition Cycle Proposition QueriesWhich 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