Chapter 5: Sales and Collections Business process

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Accounting

22 Terms

1

access controls

Limit who can use and change records in the system; for example, passwords control who can use an application.

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2

accounts receivable

Monies owed by customers for prior sales of goods or services. In a data modeling context, accounts receivable are calculated as each customer’s sales less corresponding cash receipts.

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3

agents

The people or organizations, such as customers or salespeople, who participate in business events.

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4

application controls

Specific to a subsystem or an application to ensure the validity, completeness, and accuracy of the transaction.

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5

cash

The organization’s monies in bank or related accounts. The instances of the class are individual accounts. This is considered a resource.

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6

cash receipts

Record receipts of cash from external agents (e.g., customers) and the corresponding deposit of those receipts into cash accounts. This is considered an event.

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7

choreography

The science of examining raw data (now often Big Data), removing excess noise from the dataset, and organizing the data with the purpose of drawing conclusions for decision making.

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8

collaboration

A BPMN model showing two participant pools and the interactions between them within a process.

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9

customer

The external agent in the sales and collection process.

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10

error event

An intermediate event in a BPMN model showing processing for exceptions to the normal process flow.

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11

events

(UML) Classes that model the organization’s transactions, usually affecting the organization’s resources, such as sales and cash receipts; (BPMN) important occurrences that affect the flow of activities in a business process, including start, intermediate, and end events.

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12

one-to-many relationship

Exists when instances of one class are related to multiple instances of another class. For example, a customer can participate in many sales, but each sale involves only one customer.

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13

orchestration

In BPMN, the sequence of activities within one pool.

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14

product

Class representing the organization’s goods held for sale—that is, the organization’s inventory. This is considered a resource.

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15

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16

quote

Description of the products and/or services to be provided to a customer if ordered.

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17

REA

Resource-event-agent framework for modeling business processes, originally developed by William McCarthy.

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18

resources

Those things that have economic value to a firm, such as cash and products.

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19

sales

Events documenting the transfer of goods or services to customers and the corresponding recognition of revenue for the organization.

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20

sales order

Event documenting commitments by customers to purchase products. The sales order event precedes the economic event (sale).

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21

subprocess

Represent a series of process steps that are hidden from view in BPMN. The use of subprocesses in modeling helps reduce complexity.

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22

type image

Class that represents management information (such as categorizations, policies, and guidelines) to help manage a business process. Type image often allows process information to be summarized by category.

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