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Introductio NTO Transaction Processing

This document discusses two types of computer-based accounting systems: batch systems and real-time systems. It describes batch processing as accumulating transactions over time and processing them in groups, while real-time systems process each transaction individually as it occurs. The document outlines the key steps in batch processing including keying, editing, sorting, and updating the master file. It also notes some advantages of batch processing and characteristics of real-time systems.

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Gilbert T Indiongco Jr.
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58 views17 pages

Introductio NTO Transaction Processing

This document discusses two types of computer-based accounting systems: batch systems and real-time systems. It describes batch processing as accumulating transactions over time and processing them in groups, while real-time systems process each transaction individually as it occurs. The document outlines the key steps in batch processing including keying, editing, sorting, and updating the master file. It also notes some advantages of batch processing and characteristics of real-time systems.

Uploaded by

Gilbert T Indiongco Jr.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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INTRODUCTIO

N TO
TRANSACTION
PROCESSING

Chapter 2

Computer-Based
Accounting Systems
Two

broad classes of
systems:
batch

systems
real-time systems

Batch Processing
A

batch is a group of similar transactions that


are accumulated over time and then
processed together.

The

transactions must be independent of one


another during the time period over which the
transactions are accumulated in order for
batch processing to be appropriate.

time lag exists between the event and the


processing.

Batch Processing/Sequential File


Sales
Orders

Unedited
Transactions

Keying

Errors
correct errors and
resubmit

catches clerical errors

Edit
Run
Edited
Transactions

rearranges the transaction data by


key field so that it is in the same
sequence as the master file

Sort
Run
Transactions
Old Master
(father)
AR
Update
Run

changes the values in the master file to


reflect the transactions that have occurr

AR
New Master
(son)

Transactions (eventually transferred to an archive file)

Steps in Batch
Processing/Sequential
File

Keystroke

- source documents are transcribed


by clerks to magnetic tape for processing later
Edit Run - identifies clerical errors in the batch
and places them into an error file
Sort Run - places the transaction file in the
same order as the master file using a primary
key
Update Run - changes the value of appropriate
fields in the master file to reflect the transaction
Backup Procedure - the original master
continues to exist and a new master file is
created

Advantages of Batch
Processing
Organizations

can increase
efficiency by grouping large numbers
of transactions into batches rather
than processing each event
separately.

Batch

processing provides control


over the transaction process via
control figures.

Real-Time
Systems
process transactions individually at

the moment the economic event occurs


have no time lag between the economic
event and the processing
generally require greater resources
than batch processing since they require
dedicated processing capacity; however,
these cost differentials are decreasing
oftentimes have longer systems
development time

Operational Efficiency
Efficiency Versus
Effectiveness

Why Do So Many AISs Use


Batch Processing?

AIS processing is characterized by highvolume, independent transactions, such are


recording cash receipts checks received in the
mail or payroll. The processing of such highvolume checks can be done during an off-peak
computer time.
This is one reason why batch processing
maybe done using real-time data collection.

Alternative Data
Processing Approaches
Legacy

Systems Versus
Modern Systems

Updating

Master Files from


Transactions

Database

Backup Procedures

Updating Master Files


from Transactions
1.

A sales order record is red by the system.

2.

ACCOUNT NUMBER is used to search the AR master file


and retrieve the corresponding AR record.

3.

The AR update procedure calculates the new customer


balance by adding the value in the AR master record.

4.

Next, INVENTORY NUMBER is used to search for the


corresponding record in the inventory master file.

5.

The inventory update program reduces inventory levels by


deducting the QUANTITY SOLD value in a transaction
record from the QUANTITY ON HAND field value in the
inventory record.

6.

A new sales order record is read, and the process is


repeated.

Batch Processing Using


Real-Time Data Collection

Uses of Coding in AIS


Concisely

represent large amounts of


complex information that would otherwise
be unmanageable

Provide

a means of accountability over the


completeness of the transactions
processed

Identify

unique transactions and accounts


within a file

Support

the audit function by providing an


effective audit trail

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