Scribd
Upload
50 views15 pages

Overview of Transaction Processing and Enterprise Resource Planning Systems

This document provides an overview of transaction processing and enterprise resource planning (ERP) systems. It describes the four parts of the data processing cycle: data input, data storage, data processing, and information output. It also discusses how data is captured from source documents, stored in computer files, and processed. ERP systems are described as integrating activities across an entire organization in areas such as production, sales, and finance. The advantages of ERP systems include standardized and integrated information flow, while the disadvantages include high costs and time for implementation.

Uploaded by

Kim Raven Co
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
50 views15 pages

Overview of Transaction Processing and Enterprise Resource Planning Systems

This document provides an overview of transaction processing and enterprise resource planning (ERP) systems. It describes the four parts of the data processing cycle: data input, data storage, data processing, and information output. It also discusses how data is captured from source documents, stored in computer files, and processed. ERP systems are described as integrating activities across an entire organization in areas such as production, sales, and finance. The advantages of ERP systems include standardized and integrated information flow, while the disadvantages include high costs and time for implementation.

Uploaded by

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

Overview of Transaction

Processing and Enterprise


Resource Planning Systems

2-1
Learning Objectives
• Describe the four parts of the data processing cycle and the major
activities in each.

• Describe documents and procedures used to collect and process


transaction data.

• Describe the ways information is stored in computer-based information


systems.

• Discuss the types of information that an AIS can provide.

• Discuss how organizations use enterprise resource planning (ERP)


systems to process transactions and provide information.

2-2
Data Processing Cycle

2-3
Data Input
Steps in Processing Input are:
• Capture transaction data triggered by a business activity
(event).
• Make sure captured data are accurate and complete.
• Ensure company policies are followed (e.g., approval of
transaction).

2-4
Data Capture

 Information collected for an activity includes:


 Activity of interest (e.g., sale)
 Resources affected (e.g., inventory and cash)
 People who participated (e.g., customer and employee)
 Information comes from source documents.

2-5
Source Documents
 Captures data at the source when the transaction takes
place
 Paper source documents
 Turnaround documents
 Source data automation (captured data from machines, e.g.,
Point of Sale scanners at grocery store)

2-6
Data Storage
• Important to understand how data is organized
▫ Chart of accounts
 Coding schemas that are well thought out to anticipate
management needs are most efficient and effective.
▫ Transaction journals (e.g., Sales)
▫ Subsidiary ledgers (e.g., Accounts receivable)
▫ General ledger
Note: With the above, one can trace the path of the transaction
(audit trail).

2-7
Audit trail for
Invoice #156 for
$1,876.50 sold to
KDR Builders

2-8
Computer-Based Storage
Data is stored in master files or transaction files.

2-9
Data Processing
Four types of processing (CRUD):
• Creating new records (e.g., adding a customer)
• Reading existing data
• Updating previous record or data
• Deleting data

Data processing can be batch processed (e.g., post records at


the end of the business day) or in real-time (process as it
occurs).

2-10
Information Output
The data stored in the database files can be viewed
• Online (soft copy)
• Printed out (hard copy)
▫ Document (e.g., sales invoice)
▫ Report (e.g., monthly sales report)
▫ Query (question for specific information in a database, e.g.,
What division had the most sales for the month?)

2-11
Enterprise Resource Planning (ERP)
Systems
• Integrates activities from the entire organization
▫ Production
▫ Payroll
▫ Sales
▫ Purchasing
▫ Financial Reporting

2-12
Advantages of ERP System
• Integrated enterprise-wide allowing for better flow of the
information as it’s stored in a centralized database and can
be accessed by various departments which also improves
customer service.
• Data captured once (i.e., no longer need sales to enter data
about a customer and then accounting to enter same
customer data for invoicing)
• Improve access of control of the data through security
settings
• Standardization of procedures and reports

2-13
Disadvantages of ERP System
 Costly
 Significant amount of time to implement
 Complex
 User resistance (learning new things is sometimes hard for
employees)

2-14
Key Terms
• Data processing cycle • Entity
• Source documents • Attributes
• Turnaround documents • Field
• Source data automation • Record
• General ledger • Data value
• Control account • File
• Coding • Master file
• Sequence code • Transaction file
• Block code • Database
• Group code • Batch processing
• Mnemonic code • Online, real-time processing
• Chart of accounts • Document
• General ledger • Report
• Specialized journal • Query
• Audit trail • Enterprise resource planning
(ERP) system
2-15

You might also like