Amanda M. Is A Regional Manufacturer And Wholesaler Of High

Amanda M Is A Regional Manufacturer And Wholesaler Of High Quality Cho

Amanda M is a regional manufacturer and wholesaler of high-quality chocolate candies. The company’s sales and collection process involves an enterprise-wide information system with electronic data interchange (EDI) capability, eliminating the need for paper documents. The process begins when the company receives electronic sales orders from customers. Upon receipt, the shipping department prepares the goods for shipment and inputs shipping data into the system. The system then automatically sends an electronic shipping notice and invoice to the customer at the time of shipment. The sales terms are net 30 days. When the customer’s payment is due, they make an electronic funds transfer (EFT) for the owed amount. The customer's system transmits remittance data back to Amanda M, which updates the company's accounts receivable records accordingly. This automated process ensures a seamless flow of sales, shipment, and payment information, minimizing manual intervention and reducing errors.

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Context Diagram

The context diagram of Amanda M’s sales and collection process visualizes the entire environment as a single process interacting with external entities. The primary external entities include the Customers and the Financial Institution handling EFT payments.

External Entities

  • Customers: Initiate sales orders and send remittance data.
  • Financial Institution: Processes electronic funds transfers initiated by customers.

Major Data Flows

  • Sales Orders: Customers send electronic sales orders to Amanda M.
  • Shipping Data: Amanda M inputs shipping information into the system.
  • Shipping Notice & Invoice: System sends electronic notices and invoices to Customers.
  • Payment Data: Customers send payment remittance data to Amanda M.
  • Funds Transfer: Financial institution processes EFT payments.

The central process in the diagram is the 'Sales and Collection System' which receives inputs and produces outputs accordingly, connecting all external entities.

Level 0 Logical Data Flow Diagram

Processes

  1. Order Processing: Receives electronic sales orders from customers, verifies, and forwards shipping instructions.
  2. Shipping and Invoicing: Prepares goods for shipment, inputs shipping data, and transmits electronic shipping notices and invoices.
  3. Payment Processing: Receives remittance data, processes payments, and updates accounts receivable.

Data Stores

  • Customer Orders: Stores incoming sales orders.
  • Shipping Data: Stores data related to shipped goods.
  • Invoices and Payment Records: Stores invoice details and payment confirmations.
  • Accounts Receivable: Maintains data on outstanding balances.

Data Flows

  • Customers send sales orders → Order Processing.
  • Order Processing forwards shipping instructions and updates data stores.
  • Shipping Data is inputted and sent to Shipping and Invoicing process, which generates shipping notices and invoices.
  • Customers send remittance data → Payment Processing.
  • Payment data updates Accounts Receivable and generates confirmation.
  • Financial institution processes EFT payments directly into the system’s payment record.

Diagram Summary

The level 0 data flow diagram encapsulates the end-to-end flow from customer inquiries and orders through shipment, invoicing, and receipts of electronic payments. The diagram underscores automation with minimal manual oversight, ensuring efficiency and accuracy in Amanda M's sales and collection workflow.

References

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  • Hall, J. A. (2018). Understanding Accounting Information Systems. Cengage Learning.
  • Turban, E., Volonino, L., & Wood, G. (2018). Information Technology for Management: Digital Design, Data, and Business Models. Wiley.
  • O’Brien, J. A., & Marakas, G. M. (2017). Management Information Systems. McGraw-Hill Education.
  • Stair, R., & Reynolds, G. (2019). Principles of Information Systems. Cengage.
  • Valacich, J., & Schneider, C. (2018). Information Systems Today: Managing in the Digital World. Pearson.
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