assignment 1
ACCT-361: Database Project Step One – Semester System project
Due Oct 5th 23:59pm. – 20 points.
Instructions:
Complete an REA model with minimum and maximum cardinalities of the business process (transaction cycle)
you will be prototyping for your System Project.
1. Make up a company in you assigned industry. Industry assignments are available under Project Step 1 folder.
2. Create a narrative for your transaction cycle – must be unique. (Use of safe assign to check for non-original
work). In a paragraph (about 100-150 words), briefly explain how that transaction cycle works in your
company. You can take a look at the descriptions we have seen in the REA Exercises, but as long as you
explain things clearly, you do not have to use a similar language.
3. Complete an REA model with minimum and maximum cardinalities of the process (transaction cycle) you
will be prototyping for your System Project.
a. Model one complete transaction cycle REA model with cardinalities.
b. Design two many-to-many relationships in your REA model.
4. Identify the 2 related events you want to choose for your system project. These 2 events must be connected by
a relationship line. Your narrative should be completed in MS Word. The REA model based on your narrative
can be handwritten for this assignment, although your final project will require the REA model to be
completed using a computer application. Your REA model for this assignment and your final project should
include your complete transaction cycle. However, your final project and implementation require you to only
prototype (build in Access) your 2 chosen events (and related agents & resources).
How to choose business processes:
An expanded business process listing for Sales/Collection & Acquisition/Payment processes is on page 2 below
and in the text book. Page 3 below shows 2 prior student examples of Step 1. If you decide to go with another
business process (e.g. Payroll Cycle), please refer to the book for its events and other characteristics. While you
may not have to use all the events listed on page 2, the more realistic (for your chosen company in your assigned
industry) and detailed your model is, the higher your grade will likely be. Pages 3 and 4 below shows 2 prior
student examples of Step 1.
The REA on Page 3 is for a Real Estate company. The REA on page 4 is for a payroll processing company. This
one is computer drawn because this was the final project submission. Step 1 can be hand drawn – but make sure
to identify the two events that will be selected for the remaining part of the project. The two selected events need
to be connected. These examples use the Chen’s method to denote cardinalities, but you may also use the
Crow’s method for cardinalities (we used this in the past lectures). Upload your written narrative and REA
model. The REA can be handwritten, although your final project will require this to be completed using a
computer application.
What to submit: A word document with a cover page and required REA and narrative in proper format. Points
will be deducted for unprofessional or incorrect submissions. Late submissions will be
assigned point deductions.
Submission Advice for grading:
Students will model their business processes in their industry. This requires creativity within the bounds of the
AIS and industry. Effort counts in this assignment. Grading of this assignment is more subjective than other
assignments. The goal for grading this assignment is to return to you a model that is accurate and ready for you
to continue to the next step in the design of your project prototype.
There are some important points to consider when you are creating your REA Conceptual model for grading:
• Complexity and critical thought: If you capture a more complex business process that requires critical thinking,
fewer points are deducted for mistakes in the model than for mistakes made capturing a process that does not
require critical thinking.
Business Processes – Summarized
Sales/Collection Process
Typical Events
Marketing Event
Customer Order Event
Moving Inventory Event
Shipping Inventory/Provide Services Event
Receive Customer Payment Event
Accept Returns and Approve Allowances Event
Write-Off Uncollectible Accounts Event
Common Documents
Customer Order
Sales Order
Shipping
Documents Sales
Invoice Credit
Memorandum
Customer Statement Remittance
Advice
Additional Reports (sample)
Open Orders
Sales
Journal
Profitability Analyses
Customer Mailing Labels
Aged Receivables
Demographic Analyses
Performance Information on Products, Salespeople
Event Controls (sample)
A shipment occurring without an authorized order
An order being approved without proper customer
and credit review
An order being entered by an unauthorized
employee
A shipment being sent to the wrong customer A
shipment containing incorrect or excess items A
shipment being set to an employee’s address A
cash receipt being credited to a customer
without receiving cash
Acquisition/Payment Process –
Goods or Services
Typical Events
Request for Goods/Service Event
Authorize Purchase Event
Purchase Goods/Service
Event Receive
Goods/Service Event
Cash Disbursement Event
Purchase Return Event
Common Documents
Purchase Requisition
Purchase Order
Receiving Report Check
Additional Reports (sample)
Open Requisitions
Open Purchase Orders
Vendor Performance Reports
Aged Payables
Stock Status Reports Purchases
Journal
Event Controls (sample)
Initiating a purchase order without an authorized request
Approving a purchase order without a proper review
Having a fictitious employee approve a purchase order
Having a receiving clerk delete or modify a purchase order
Accepting a shipment containing incorrect items Accepting a
shipment of inferior goods Accepting a shipment without a
valid and approved purchase order Disbursing cash without a
corresponding receipt of goods Disbursing cash for an amount
that does not correspond to the receipt of goods
Disbursing cash to an invalid or fictitious vendor
2
Stars represent the two event entities selected for the system project.
3
Highlighted entities represent the two selected events
4
Example of Step 1 Submission.
REA Model of assigned Industry with chosen 2 connected events selected
How many tables in his Logical Model = tables in his Access project?
How many tables in his Logical Model = tables in his Access project?
Last Name Initial Assigned Industry
A-B Restaurant (examples: fast food, fine dining)
C-E Services (examples: KPMG, law firm, hair salon)
F-H Hospitality (examples: Marriott, American Cruise
Lines)
I-N Healthcare (example: doctor’s office)
O-Z Manufacturing (examples: Boeing, Nike, Jeep)
BusinessProcesses – Summarized
Sales/Collection Process
Events
Marketing Event
Customer Order Event
Moving Inventory Event
Shipping Inventory/Provide Services Event
Receive Customer Payment Event
Accept Returns and Approve Allowances Event
Write-Off Uncollectible Accounts Event
Common Documents
Customer Order
Sales Order
Shipping Documents
Sales Invoice
Credit Memorandum
Customer Statement
Remittance Advice
Additional Reports (sample)
Open Orders
Sales Journal
Profitability Analyses
Customer Mailing Labels
Aged Receivables
Demographic Analyses
Performance Information on Products,
Salespeople
Event Controls (sample)
A shipment occurring without an authorized
order
An order being approved without proper
customer and credit
review
An order being entered by an unauthorized
employee
A shipment being sent to the wrong customer
A shipment containing incorrect or excess items
A shipment being set to an employees address
A cash receipt being credited to a customer
without receiving cash
Acquisition/Payment Process –
Goods/Services
Events
Request for Goods/Service Event
Authorize Purchase Event
Purchase Goods/Service Event
Receive Goods/Service Event
Cash Disbursement Event
Purchase Return Event
Common Documents
Purchase Requisition
Purchase Order
Receiving Report
Check
Additional Reports (sample)
Open Requisitions
Open Purchase Orders
Purchases Journal
Stock Status Reports
Vendor Performance Reports
Aged Payables
Event Controls (sample)
Initiating a purchase order without an authorized
request
Approving a purchase order without a proper
review
Having a fictitious employee approve a purchase
order
Having a receiving clerk delete or modify a
purchase order
Accepting a shipment containing incorrect items
Accepting a shipment of inferior goods
Accepting a shipment without a valid and
approved purchase order
Disbursing cash without a corresponding receipt
of goods
Disbursing cash for an amount that does not
correspond to the receipt of goods
Disbursing cash to an invalid or fictitious vendor
Conversion Process
In Manufacturing:
Job Costing or Process Costing
Job Costing
Events
Will vary with each industry
Agents are typically all internal
Resources include inventories, equipment, and
even contracts/jobs
Objectives
Control costs of operations, including raw
materials, labor and other manufacturing costs
Maintain and increase worker productivity while
minimizing defects
Example Information Reports
Performance Analyses
Processes
Workers
Inspection Results
Inventory Valuations/Status
Job Reports
Profitability Analyses and Cost Control Reports
Purchasing and Scheduling Needs
Acquisition/Payment Process –
Human Resources
Events
Request Support Event
Hiring Event
Training Event
Assigning Event (promotions)
Recording time worked
Compensating Event (i.e., pay employee)
Evaluation Event (performance reviews)
Terminating Event
Common Documents
Payroll Check
Employee History
Payroll Returns
Performance Report
Open Job Positions
Acquisition/Payment Process — Other
Fixed Assets (PPE)
Similar to the acquisition/payment process
events
Depreciation of PPE event
Maintenance of PPE event
Financing and Investments
Also similar to acquisition/payment process
events
Accrual of interest event
Payment of interest and principal event
Change in market value event