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A dataflow diagram (DFD) of a billing system visually represents the flow of information and processes involved in generating and managing bills. It typically includes external entities such as customers and payment processors, processes like bill generation and payment processing, and data stores for customer information and transaction records. Arrows indicate the direction of data flow between these components, illustrating how data is transformed and used throughout the billing cycle. This diagram helps stakeholders understand the system's functionality and identify areas for improvement.

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