You are an information technology analyst (ITA) for Integrated Resource
. You are an information technology analyst (ITA) for Integrated Resource Technologies, Inc. (IRGT), which has a computer retail division called Identity Systems (Identity). Identity produces many computer peripherals including a tactical keyboard for use by senior adults. Identity has been producing keyboards for more than 25 years and has recently signed a three-year contract to provide the keyboards for Wal-Mart. As the ITA, you have been assigned the task of developing a Level 0 DFD for Identity’s order processing system. You have gathered the information needed to develop the initial DFD and now want to complete the diagram.
Customer Orders: The major customer for this project is Wal-Mart. All of their sales are based on extensive credit terms which are electronically transmitted using electronic data interchange modalities. For more on EDI, please see http://www.x12.org/. When orders are received, the EDI system alerts an email notification group of their arrival and many documents are prepared electronically. The following documents are created:
1. Sales verification (SV) receives a purchase order notification.
2. SV notifies the sales manager of the incoming PO and verifies that the sales price on the PO matches the current list price of the ordered keyboards. If correct, SV transmit a PO approval and sends to order processing (OP).
3. OP reviews the order to determine if the total order places the customer into any credit hold. If the order does not cause a credit hold, the OP transmits a packing slip and transmits to the warehouse; OP approval of the credit is transmitted to sales verification.
4. Warehouse fills the packing slip and transmits a shipping document to OP complete with all shipping information. This information includes the quantity shipped, number of boxes, number of pallets, weight, freight carrier, shipping terms, shipping cost, date of shipment, and expected delivery date.
5. OP creates an invoice and transmits a shipping advice memorandum and invoice via EDI to Wal-Mart. Accounting is copied on these documents and they close the PO and record the inventory shipment and invoice to Wal-Mart
After reviewing your notes, you write a memo summarizing the transaction process:
When an order arrives via EDI, and is verified by SV, OP must also check the total credit allowed, balance owed, and late history of Wal-Mart before releasing the order. If conditions warrant rejection, an order rejection notice must be sent to the Sales VP and Chief Financial Officer, who will discuss the PO and determine the appropriate course of action. If the CFO authorizes the transaction, a memo will be created for the shipping file providing the rationale for the decision from the meeting between sales and accounting. If the order is not authorized by the CFO, then SV will notify Wal-Mart of the rejection and the credit manager will contact Wal-Mart payment processing to determine the resolution to the past due invoices. When the invoice is prepared, a physical copy of all documents must be placed in the Customer file for backup in case of IT system problems.
From the information presented, complete a Level 0 DFD for order processing and a Level 1 DFD for credit review or one of the other departments in this Identity Systems case. Make sure your DFDs follow the conventions in your textbook. In addition, prepare a risk/control matrix following the pattern in your textbook.