Below is a narrative of the "Validate sales order" portion (i.e., bubble 1.0) of the order entry/sales process
Narrative Description
How does the OE/S process then validate a customer order? First, process 1.1 verifies the availability of the requested inventory by consulting the inventory master data. If a sufficient level of inventory is on hand to satisfy the request, the order is forwarded for further processing, as depicted by the data flow "Inventory available order." Conversely, if a customer orders goods that are not in stock, process 1.1 runs a special back order routine. This routine determines the inventory requirement necessary to satisfy the order and then sends the back order request to the purchasing department. This activity is depicted by the "Back order" data flow, which in reality is a specific type of exception routine (i.e., a specific type of reject stub). If the customer refuses to accept a back order, then the sales event is terminated and the order is rejected, as shown by the "Reject" data flow. Information from the order (e.g., sales region, customer demographics, and order characteristics that reflect buying habits) that has potential value to marketing is recorded in the marketing data store.
After assuring inventory availability, process 1.2 establishes the customer's existence and then evaluates credit. The credit check adds the amount of the order to accounts receivable balances and open sales orders (i.e., orders about to be receivables), and compare that total to the credit limit. If the customer has exceeded their credit limit, the order is rejected.
Upon a successful credit approval, process 1.3 performs the following activities simultaneously:
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Updates the inventory master data to allocate the quantity ordered to the sales order. The inventory balance could actually be reduced at this time to save a later update of the inventory master data.
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Updates the sales order master data to indicate that a completed sales order has been created.
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Disseminates the sales order.
Required:
From the DFD in TB Figure 10.2 and the narrative description above, explode bubble 1.0 into a lower-level diagram showing the details of that process.
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