Chapter

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

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 LO 1

Review of Purchases and Payments Accounting

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 LO 2

Sunset Graphics Purchases Process

1. Research prices and product availability.

2. Select the best price and availability combination and send a purchase order to the
supplier.
3. Receive the items from the supplier (and record the purchase and accounts
payable).
4. Pay the supplier according to the credit terms.

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 LO 2

Basic Purchases BPMN Activity Model

The basic activity model implements high-level process steps.

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 LO 3

Collaboration Model of the Purchases

Process

The collaboration model focuses on the message flows between the pools.

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 LO 3

Adding Lanes to Show Functional

Responsibility

Pools show organizations and lanes

show functional responsibilities within
Pools

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 LO 4

Business Rules Examples for Purchases Process

Process Steps Intention Partner Authority/Action Access Controls Application Controls
Place Order Order products Manager approval required Partners preparing System must provide
from reliable for orders > $5,000; Partner purchase orders purchase order
suppliers at the ordering products must not cannot modify number control,
best available manage inventory product inventory default values, range
prices to meet records, receive and limit checks, and
required items, or pay create audit trail
delivery time suppliers

Receive Items Record receipt Partner receiving items Partners receiving System must only
of items must not be same partner items cannot modify allow partner to enter
promptly and that ordered the items purchase orders or the number of items
accurately inventory records; received, subject to
they cannot view range and limit checks
purchase order on quantities received;
quantity ordered date of receipt defaults
information to current date

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 LO 5

Sunset’s Basic Purchases UML Class Models

1. Purchase Orders are commitments to purchase from the supplier.

2. Purchases document the receipt of items from the supplier.
3. Cash disbursements pay for one or more receipts.

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 LO 5

Revised Purchases UML Class Diagram

Purchase Orders and Purchases are collapsed into one Purchase Orders event

Product Categories type image categorizes Products

Supplier Categories type image categorizes Suppliers, and the association with Employees indicates which
employee is responsible for each Supplier Category
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 LO 6

Implementing UML Diagram in a Database

The database will contain 8 tables, one for each class, and 1 linking table for the relationship
between Purchase Orders and Products.

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 LO 6

Database Relationships

Which relationship is missing? How would you implement that?

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 LO 5

Generic Purchases and Payments Model

1. Each Supplier participates in a minimum of zero and
a maximum of many Purchases.

2. Each Purchase involves a minimum of one and a

maximum of many Inventory items. Each Inventory
item can be purchased zero times or many times. The
multiplicities on this association are typical when
Inventory is carried at a type of product level, such
as when the inventory is identified by UPC code.

3. Each Cash Disbursement (for example, one check) is

paid from one and only one Cash account, and each
Cash account is associated with a minimum of zero
cash disbursements and a maximum of many cash
disbursements.

4. The multiplicities on the association between

Purchases and Cash Disbursements depend on
business policy.

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

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 LO 5

Integrating Sales and Purchases Models

0..*
Purchases 1..1
0..*
0..*
?..? Suppliers
1..1
?..?
0..*
0..* Cash
Disbursements

Resources (Products and Cash) and 0..*

1..1
1..* 1..1
internal agents (Employees) are shared 1..1

Products Cash Employees

between processes; Events and external 1..1
1..1
agents are process-specific. 1..* 1..1

0..*
0..*
Cash Receipts
0..*
?..?
1..1
?..? Customers
0..*
0..* 1..1
Sales
0..*

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End of Chapter 6