1. Chapter 6 Purchase and Payments Business Process
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2. Learning Objectives
LO#1 Describe the business activities that comprise the purchase and payment process
LO#2 Develop an activity model of the purchase and payment process using BPMN
LO#3 Understand and apply different activity modeling options
LO#4 Develop business rules to implement controls for the purchase and payment process
LO#5 Develop structure models for the purchase and payment process using UML class diagrams
LO#6 Implement a relational database from the UML Class Diagram of the purchase and payment process

3. Review of Purchases and Payments Accounting
LO# 1
Review of Purchases and Payments Accounting

4. Sunset Graphics Purchases Process
LO# 2
Sunset Graphics Purchases Process
Research prices and product availability
Select the best price and availability combination and send a purchase order to the supplier
Receive the items from the supplier (and record the purchase and accounts payable)
Pay the supplier according to the credit terms

5. Basic Purchases BPMN Activity Model
LO# 2
Basic Purchases BPMN Activity Model
The basic activity model implements the process steps.

6. Collaboration Model of the Purchases Process
The collaboration model focuses on the message flows between the pools.

7. Adding Swimlanes to Show Functional Responsibility
LO# 3
Swimlanes
show functional responsibilities

8. Business Rules Examples for Purchases Process
LO# 4
Process Steps
Intention
Partner Authority/Action
Access Controls
Application Controls
Place Order
Order products from reliable suppliers at the best available prices to meet required delivery time
Manager approval required for orders > $5,000; Partner ordering products must not manage inventory
Partners preparing purchase orders cannot modify product inventory records, receive items, or pay suppliers
System must provide purchase order number control, default values, range and limit checks, and create audit trail
Receive Items
Record receipt of items promptly and accurately
Partner receiving items must not be same partner that ordered the items
Partners receiving items cannot modify purchase orders or inventory records; they cannot view purchase order quantity ordered information
System must only allow partner to enter the number of items received, subject to range and limit checks on quantities received; date of receipt defaults to current date

9. Sunset’s Basic Purchases UML Class Models
LO# 5
Sunset’s Basic Purchases UML Class Models
Purchase Orders are commitments to purchase from the supplier.
Receipts document the receipt of items from the supplier (when purchases recognized).
Cash disbursements pay for one or more receipts

10. Revised Purchases UML Class Diagram
LO# 5
Revised Purchases UML Class Diagram
One-to-one relationship between purchase orders and receipts allows the two events to be collapsed into one.
Purchase Orders and Receipts collapsed into one Purchases events
Added Product Categories type image as defined in Chapter 5
Added Supplier Categories type image to show Sunset Partner responsibility for Categories

11. Implementing UML Diagram in a Database
LO# 6
Implementing UML Diagram in a Database
Database will contain 8 tables to implement classes and 1 linking table for the relationship between Purchases and Products.

12. Posting Foreign Keys Example
Post towards the * and away from the 1
Foreign keys implement links for one-to-many relationships.

13. Database Relationships
Missing the relationship between Supplier Categories and Partners. Post the Partner number in the Supplier Category table.
Which relationship is missing? How would you implement that?

14. Did you notice the similarity between the sales process and the purchase process?