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Transaction Processing and Erp Systems

The document discusses transaction processing and data storage concepts in accounting information systems. It describes the four steps of the data processing cycle: 1) data input, 2) data processing, 3) data storage, and 4) information output. It then provides details on data input, storage methods like ledgers and journals, computer-based storage concepts like records and files, and the types of data processing.

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Paskalis Prayoga
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0% found this document useful (0 votes)
65 views15 pages

Transaction Processing and Erp Systems

The document discusses transaction processing and data storage concepts in accounting information systems. It describes the four steps of the data processing cycle: 1) data input, 2) data processing, 3) data storage, and 4) information output. It then provides details on data input, storage methods like ledgers and journals, computer-based storage concepts like records and files, and the types of data processing.

Uploaded by

Paskalis Prayoga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

26/08/2019

TRANSACTION
PROCESSING AND
ERP SYSTEMS

Haryono, MCom, Ak. CA.

TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
• Accountants play an important role in data
processing. They answer questions such as:
– What data should be entered and stored?
– Who should be able to access the data?
– How should the data be organized, updated, stored,
accessed, and retrieved?
– How can scheduled and unanticipated information needs
be met.
• To answer these questions, they must understand
Data Processing Concepts.

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26/08/2019

TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
An important function of the AIS is to efficiently
and effectively process the data about a
company’s transactions.
 In manual systems, data is entered into paper
journals and ledgers.
 In computer-based systems, the series of operations
performed on data is referred to as the data
processing cycle.

TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
• The data processing cycle consists of four
steps: Data
Storage
1. Data input
2. Data processing
Data Data Informatio
3. Data storage Input Processing nOutput

4. Information output

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26/08/2019

DATA INPUT
• The first step in data processing is to capture
the data.
• Usually triggered by a business activity.
• Data is captured about:
– The event that occurred
– The resources affected by the event
– The agents who participated

DATA INPUT
To improve the accuracy and efficiency of data
input:
 Turnaround documents
 Source data automation
 Well-designed source documents and data entry
screens
 Using pre-numbered documents or having the
system automatically assign sequential numbers
to transactions
 Verify transactions

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26/08/2019

DATA STORAGE
 Data needs to be organized for easy and efficient
access.
 some vocabulary terms with respect to data storage.
• Ledger: is a file used to store cumulative information
about resources and agents. We typically use the word
ledger to describe the set of T-Accounts.
• General ledger: the summary level information for all
accounts. Detail information is not kept in this account.
• Subsidiary ledger: contain the detail accounts
associated with the related general ledger account

DATA STORAGE
Coding techniques: a method of
systematically assigning numbers or letters to
data items to help classify and organize them.
There are many types of codes including:
 Sequence codes
 Block codes
 Group codes

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26/08/2019

DATA STORAGE
The following guidelines should be observed in
Group coding schemes:
– The code should be consistent with its intended use, so make
sure you know what users need.
– Make sure it’s consistent with:
• The company’s organization structure
• Other divisions of the organization
– Provide enough digits to allow room for growth.
– Keep it simple in order to:
• Minimize costs
• Facilitate memorization
• Ensure employee acceptance

DATA STORAGE
• Chart of accounts: is a list of all general ledger accounts an
organization uses.
• Group coding is often used for these numbers, e.g.:
– The first section identifies the major account categories, such as asset,
liability, revenue, etc.
– The second section identifies the primary sub-account, such as current
asset or long-term investment.
– The third section identifies the specific account, such as accounts
receivable or inventory.
– The fourth section identifies the subsidiary account, e.g., the specific
customer code for an account receivable.

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26/08/2019

DATA STORAGE
• Journals
• The first place that transactions are entered is the journal.
1. A general journal is used to record:
• Non-routine transactions, such as loan payments
• Summaries of routine transactions
• Adjusting entries
• Closing entries

2. A special journal is used to record routine transactions. The most


common special journals are:
• Cash receipts
• Cash disbursements
• Credit sales
• Credit purchases

DATA STORAGE
• Audit trail
 An audit trail exists when there is sufficient
documentation to allow the tracing of a
transaction from beginning to end or from the end
back to the beginning.

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26/08/2019

COMPUTER-BASED STORAGE CONCEPTS


• Some computer-based storage concepts, including:
 Entity
 Attribute
 Record
 Data Value
 Field
 File
 Master File
 Transaction File
 Database

COMPUTER-BASED STORAGE CONCEPTS

• A field is the physical space where an attribute is


stored.
• The space where the student ID number is stored is
the student ID field.

Col. 1-9 Col. 10-30 Col. 31-40 Col. 41-50


328469993 SIMPSON ALICE 4053721111
328500732 ANDREWS BARRY 4057440236
529036409 FLANDERS CARLA 4057475863

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26/08/2019

COMPUTER-BASED STORAGE CONCEPTS

• A record is the set of attributes stored for a particular


instance of an entity.
• The combination of attributes stored for Barry
Andrews is Barry’s record.

Col. 1-9 Col. 10-30 Col. 31-40 Col. 41-50


328469993 SIMPSON ALICE 4053721111
328500732 ANDREWS BARRY 4057440236
529036409 FLANDERS CARLA 4057475863

COMPUTER-BASED STORAGE CONCEPTS

• A data value is the intersection of the row and


column.
• The data value for Barry Andrews’ phone number is
405-744-0236.

Col. 1-9 Col. 10-30 Col. 31-40 Col. 41-50


328469993 SIMPSON ALICE 4053721111
328500732 ANDREWS BARRY 4057440236
529036409 FLANDERS CARLA 4057475863

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26/08/2019

COMPUTER-BASED STORAGE CONCEPTS

• A File is a group of related records.


• The collection of records about all students at the
university might be called the student file.

Col. 1-9 Col. 10-30 Col. 31-40 Col. 41-50


328469993 SIMPSON ALICE 4053721111
328500732 ANDREWS BARRY 4057440236
529036409 FLANDERS CARLA 4057475863

COMPUTER-BASED STORAGE CONCEPTS

• A master file is a file that stores cumulative


information about an organization’s entities.
• It is conceptually similar to a ledger in a
manual AIS in that:
– The file is permanent
– The file exists across fiscal periods
– Changes are made to the file to reflect the effects
of new transactions.

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26/08/2019

COMPUTER-BASED STORAGE CONCEPTS

• A transaction file is a file that contains records


of individual transactions (events) that occur
during a fiscal period.
• It is conceptually similar to a journal in a
manual AIS in that:
– The files are temporary
– The files are usually maintained for one fiscal
period

COMPUTER-BASED STORAGE CONCEPTS

• A database is a set of interrelated, centrally-


coordinated files.
• When files about students are integrated with files
about classes and files about instructors, we have a
database.

Student Class
File File

Instructor
File

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26/08/2019

DATA PROCESSING
• Once data about a business activity has been collected
and entered into a system, it must be processed.

• There are four different types of file processing:


1. Updating data to record the occurrence of an event,
e.g., recording a sale to a customer.
2. Changing data, e.g., a customer address
3. Adding data, e.g., a new customer.
4. Deleting data, eg. removing an old inactive customer

DATA PROCESSING
1. Batch processing:
– Source documents are grouped into batches, and
control totals are calculated.
– Periodically, the batches are entered into the
computer system, edited, sorted, and stored in a
temporary file.
– The temporary transaction file is run against the
master file to update the master file.
– Output is printed or displayed, along with error
reports, transaction reports, and control totals.

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26/08/2019

DATA PROCESSING
2. On-line, batch processing:
– Transactions are entered into a computer
system as they occur and stored in a
temporary file.
– Periodically, the temporary transaction file
is run against the master file to update the
master file.
– The output is printed or displayed.

DATA PROCESSING
3. On-line, Real-time Processing
– Transactions are entered into a computer
system as they occur.
– The master file is immediately updated with
the data from the transaction.
– Output is printed or displayed.

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26/08/2019

DATA PROCESSING SUMMARY

INPUT MEDIA:
- Hardcopy Transaction Master
- Softcopy File File

Data Data Data


Capture/Entry Processing Updating

On-line On-line On-line Sequential


On-line Off-line Off-line or
Off-line Off-line Off-line Direct
25

INFORMATION OUTPUT
• The final step in the information process is information
output, can be in the form of:
 Documents; Reports and Queries
• Queries are user requests for specific pieces of
information. They may be requested:
Periodically
One time
• They can be displayed:
On the monitor,  soft copy
On the screen,  hard copy

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26/08/2019

ROLE OF THE AIS


• The traditional AIS captured financial data.
 Non-financial data was captured in other, sometimes-
redundant systems
• Enterprise resource planning (ERP) systems are
designed to integrate all aspects of a company’s
operations (including both financial and non-financial
information) with the traditional functions of an AIS.

Traditional Information System

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26/08/2019

ERP SYSTEM
Legacy
Data Warehouse Systems

ERP System
On-Line Analytical Processing Bolt-On Applications
(OLAP) (Industry Specific Functions)
Customers Suppliers
Core Functions [On-Line Transaction Processing (OLTP)]
Sales
Business Shop Floor
& Logistics
Planning Control
Distribution

Operational Database
Customers, Production,
Vendor, Inventory, etc.

15

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