Stage 4

Running Head: SYSTEM ANALYSIS AND DESIGN

Systems Analysis and Design

Name

Institutional Affiliation

STAGE 2 – REQUIREMENTS SPECIFICATION

Precision Electronic Parts Inc. is a tiny private company that sells low voltage motors, largely to the medical industry, but they've expanded and are witnessing significant growth in demand for their product. This rise has resulted in a backlog in processing customer invoices, billing, and receiving customer payments due to their current billing and invoicing system's inability to keep up with the demand (Valacich, et al, 2017).

New system which Burton's Business and IT Systems Analyst Company (BBISAC) will present to PEP will allow the finance department to control invoice creation, billing, and payment collections when an order is received. This particular solution will also help to eliminate late invoicing and billing, as well as reduce processing errors.

FUNCTIONAL REQUIREMENTS

PEP follows a monthly reporting plan that includes all departments, but their major goal is to stay informed about how invoices are kept, and client payments are collected. Those functional requirements for said new system will immediately establish the essential functionality of the proposed solutions in terms of data input into the system, data processing, and information received from the system. (Valacich, et al, 2017).

1. Output requirements

i. Monthly Invoicing Report – On the 15th of each calendar month, the Marketing department updates product codes and also pricing utilized by the invoicing database, and this report will provide the current status (Valacich, et al, 2017).

ii. Accounts Receivable Report - Customer payments are due to PEP by the 10th of each month, and are collected in lump sum installments. The Accounts Receivable (AR) department is in charge of processing payments. Once payments are received, AR is in charge of updating customer account records.

iii. Overdue Collections Reports – The Invoicing department is in charge of locating past-due accounts. These reports are forwarded to the departments of AR and Sales.

The AR department handles all collections that match the following requirements:

1. 30 days past due

2. 60 days past due

3. Overdue for the past 60 days

2) Input requirements

a) The data below must be entered into the system to correctly obtain the essential information to construct the Monthly Invoicing Report:

1. Customer Organization Full Name

2. Customer Organization Street Address

3. Product Price Per Unit

4. Customer City

5. Employee ID

6. Customer State

7. Product Order Date

8. Products Ordered

9. Quantity Ordered

10. Customer Zip Code + 4

b)The data below must be entered into the system to correctly gather the essential information to construct the Accounts Receivable Report (Valacich, et al, 2017):

1. Customer Organization Full Name

2. Product Order Date

3. Products Ordered

4. Employee ID

5. Quantity Ordered

6. Product Price Per Unit

7. Amount Paid

8. Date Paid

9. Calculated Price (Calculated Field)

10. Amount Due (Calculated Field)

b)The data below must be entered into the system to correctly gather the essential information to construct the Overdue Collections Report (Valacich, et al, 2017):

1. Customer Organization Full Name

2. Customer Street Address

3. Customer City

4. Customer State

5. Customer Zip Code + 4

6. Primary Contact First_Name

7. Primary Contact Last_Name

8. Primary Contact Phone_Number

9. Primary Contact Email_Address

10. Secondary Contact First_Name

11. Secondary Contact Last_Name

12. Secondary Contact Phone_Number

13. Secondary Contact Email Address

14. Products Ordered

15. Product Ordered Date

16. Quantity Ordered

17. Product Price Per Unit

18. Calculated Price (Calculated Field)

19. Amount Due (Calculated Field)

20. Amount Paid

21. Date Paid

22. Employee ID

23. Amount 30 Days Overdue (Calculated Field)

24. 2% Overdue Amount (Calculated Field)

25. Amount > 60 Days Overdue (Calculated Field)

26. Amount 60 Days Overdue (Calculated Field)

3) Processing requirements

i. Monthly Invoicing Report – data entry into the new system of needed input data

ii. Accounts Receivable Report - Financial information can be entered into a secure online system to cover costs.

iii. Overdue Collections Reports – The department's invoicing data is entered.

Reference

Valacich, J. S., George, J. F., & Valacich, J. S. (2017). Modern systems analysis and design (Vol. 9). Boston: Pearson.