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a database ? Data processing software transforms the data into information for the firm’s management and for individuals and anizations in the firm’s environment 4 5 System Overview ? Data flow diagrams (DFDs) are used to document the system in a hierarchical manner ? The diagram in Figure represents the highest level, called a context diagram because it presents the system in the context of its environment ? The data flowing from the distribution system to management consists of the standard accounting reports 6 7 The Major Subsystems of the Distribution System ? While context diagrams define the system boundary, other DFDs are used to describe the major subsystems in the firms data processes ? When a series of DFDs are used in a hierarchy, they are called leveled DFDs ? Figure which is a Figure 0 diagram showing three major subsystems ? These subsystems are identified by the numbered upright rectangles in Figure 8 9 Systems That Fill Customer Orders ? Figure shows the four main systems involved in filling customer orders: ? The order entry system enters customer orders into the system ? The inventory system maintains the inventory records ? The billing system prepares the customer invoices, and ? The accounts receivable system collects the money from the customers ? Figure expands Process 1 shown in the Figure 0 diagram, and is called a Figure 1 diagram 10 11 Systems That Order Replenishment Stock ? The subsystems concerned with ordering replenishment stock from suppliers are shown in Figure , which is called a Figure 2 diagram since it explodes Process 2 of the Figure 0 diagram ? The purchasing system issues purchase orders to suppliers for the needed stock ? The receiving system receives the stock, and ? The accounts payable system makes payment 12 13 Systems That Perform General Ledger Processes ? Figure shows the detail for the last of the three processes in the Figure 0 diagram