1. McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. ENTERPRISE INFORMATION SYSTEMS A PATTERN BASED APPROACH 融資循環 The Financing Business Process

2. 13-2 Financing Cycle in the Value Chain

3. 13-3 Financing Cycle Business Process Level

4. 13-4 Financing Cycle Resources Cash –Is the resource acquired –Is the resource given up –Type level entity – represents accounts in which cash and cash instruments are stored

5. 13-5 Financing Cycle Events Cash Requisition –Is an instigation event whereby a request is made to obtain additional cash from external sources, usually on the basis of a cash flow budget –Is usually symbolized by a cash requisition number that identifies a requisition document that includes the date/time of requisition and information about the resources and agents involved in the event

6. 13-6 Cash Requisition Document

7. 13-7 Relational Tables Encompassing Cash Requisition Event

8. 13-8 Financing Cycle Events Financing Agreement - Debt –Is a mutual commitment event that obligates the external creditor to provide a certain amount of cash to the enterprise and obligates the enterprise to provide a certain amount of cash in a specified time to the external creditor. –May be called Loan Agreement, Mortgage, Promissory Note, Bond, etc.

9. 13-9 Debt Financing Agreement: Promissory Note

10. 13-10 Debt Financing Agreement: Bond Certificate

11. 13-11 Financing Cycle Events Financing Agreement – Equity –Is a Commitment Event that obligates the external investor to provide a certain amount of cash to the enterprise. Implicitly obligates the enterprise to provide cash in exchange to the investor; however, amount and timing are not specific nor guaranteed Dividend Declaration – Equity –Is a Commitment Event that obligates the enterprise to provide cash or other resource to the external investor; amount and timing are specific and are a legal obligation

12. 13-12 Equity Financing Agreement: Stock Certificate

13. 13-13 Relational Tables Encompassing Debt and Equity Financing Agreements

14. 13-14 Relational Tables Encompassing Debt and Equity Financing Agreements

15. 13-15 Financing Cycle Events Cash Receipt Event –An economic increment event that represents the receipt of cash from an external investor or creditor in fulfillment of a debt or equity financing agreement –Typically represented by a deposit slip; data captured as to date, amount, cash account into which it is deposited, agent from whom it was received, which financing agreement it fulfilled

16. 13-16 Relational Tables Encompassing Cash Receipt Event

17. Financing Cycle Events Cash Disbursement –An economic decrement event that represents the payment of cash by the enterprise to investors or creditors in fulfillment of a debt financing agreement or an equity dividend declaration (or stock re-purchase) –Is usually symbolized by a check or disbursement voucher; data captured as to date, amount, cash account from which it is dispersed, agent to whom it was dispersed, which commitment it fulfilled

18. 13-18 Relational Tables Encompassing Cash Disbursement Event

19. 13-19 Relational Tables Encompassing Cash Disbursement Event

20. 13-20 Financing Cycle Agents External Agents –Investors for Equity financing –Creditors for Debt financing Internal Agents –Cashiers typically process cash receipt events –Financial Officers (possible also Board of Directors) approve debt and equity financing agreements –Financing Clerks (or accounts payable clerks or cashiers) typically process cash disbursements

21. 13-21 Financing Cycle Relationships Duality –Cash is exchanged for cash; duality represents the timing difference between the related cash inflows and outflows Fulfillment –Financing agreement (debt or equity) fulfills cash requisition event –Cash receipt fulfills financing agreement (debt or equity) –Cash disbursement fulfills debt financing agreement or equity dividend declaration (or stock repurchase)

22. 13-22 Proposition –Cash requisition proposes to increase cash to meet financing needs Reservation –Debt Financing agreement reserves cash to be received and also reserves cash to be disbursed (with different timing patterns) –Equity Financing agreement reserves cash to be received –Equity Dividend Declaration reserves cash to be disbursed Stock-flow –Cash resource is increased by cash receipts –Cash resource is decreased by cash disbursements Financing Cycle Relationships

23. 13-23 Financing Cycle Relationships Participation relationships –See agent descriptions for events in which each type of agent participates Reciprocal –Between Equity Financing Agreement Commitment Event and Dividend Declaration Commitment Event Dividend declaration event (or stock repurchase agreement) specifies the obligation of the enterprise to pay cash to the investors that was implicitly a commitment in the equity financing agreement