CHAPTER 2

Overview of Transaction Process

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Data Processing Cycle

Data
Processing
Cycles

https://www.youtube.com/watch?v=mHztQo4iLMQ&t=61s 2
 Data Processing Cycle
I.P.S.O DATA STORAGE

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• Ledger
• Coding Techniques
• Audit Trail
• Computer-based storage concepts

4
Data
INFORMATION OUTPUT
DATA INPUT Processing

1
• Document
• Capture transaction Cycles • Report
• Complete and accurate
• Database query
• Follow business policy

DATA PROCESSING

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• Creating
• Reading
• Updating
• Deleting

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 Data Processing Cycle
● How should data be stored? On paper?
Electronically? Both?
I.P.S.O DATA STORAGE
● Where should data be stored? Locally?

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• Ledger
• Coding Techniques Remotely? Both?
• Audit Trail ● How long should be stored?
● What kind of source document needed? • Computer-based storage ● Under what conditions should data be
● Should the source documents be paper-based, • concepts destroyed?
electronic or both?
●
●
How many copies needed?
What information should the document include?
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Data
INFORMATION OUTPUT
DATA INPUT Processing

1
• Document
• Capture transaction Cycles • Report
• Complete and accurate
• Database query
• Follow business policy

DATA PROCESSING

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• Creating ● What reports will managers and system
● Which process tools should be used? • Reading users need?
• Updating
● Should the tools be manual, computer- ● How should the AIS be designed to facilitate
• Deleting
based or both? their production?
● If computer-based tools, which software and
hardware should be used?
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 Data Processing Cycle
1
DATA INPUT
• Capture transaction
• Complete and accurate
• Follow business policy

Data
Processing
Cycles

Turnaround documents:
Usually paper-based, sent from organisation to 3rd parties and same document is returned back to
organisation.
Example: Utility bills to customers. 5
 Data Processing Cycle
1
DATA INPUT
• Capture transaction
• Complete and accurate
• Follow business policy

Data
Processing
Cycles
(source data automation)

Well-designed documents
improve accuracy &
completeness
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 Data Processing Cycle
1
DATA INPUT
• Capture transaction Make sure business policies are followed.
• Complete and accurate
• Follow business policy
Example:
● Verification policies
● Credit limit policies

Data
Processing
Cycles

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 Data Processing Cycle
3 Computer-based storage system
DATA STORAGE
• Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

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 Data Processing Cycle
2 DATA PROCESSING
• Creating
• Reading
• Updating
●
●
●
Periodically (daily/weekly/monthly).
No urgency to update information.
Simple and economical.
• Deleting ● Suitable for high volume transactions
● Eg: payroll

1. Creating (adding)
2. Reading (retrieving/ viewing)
3. Updating (revising current balance) store data in
group source
temporary file
4. Deleting documents into batches

● Data is always current

for better decision making.
● Periodically (daily/weekly/monthly).
● Have high completion time
● No urgency to update information.
requirement (short deadlines)
● Costly (expensive hardware, ● Simple and economical.
software & maintenance) ● Suitable for high volume transactions
● Eg: Parcel tracking, sales order ● Eg: payroll
from customers.

store data in
temporary file 9
 Data Processing Cycle
3
DATA STORAGE Ledger (usually paper-based)
• Ledger (usually
paper-based)
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

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Test your knowledge 8

What is Accounting Cycle?

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Test your knowledge 9

Briefly explain:

a) General ledger
b) Subsidiary ledger
c) Control account

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 Data Processing Cycle
3
DATA STORAGE Coding Techniques : Sequence Codes
• Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

● allocated in order
● no documents have been
misplaced
● avoid repetition

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 Data Processing Cycle
2
DATA STORAGE Coding Techniques: Block Codes
• Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
● Used to collate similar items under a specific area orCycles
specific range
● Most software packages refers to the blocks as major and minor division

Examples:
Major division Code range Accounts types
100-199 Fixed assets
200-299 Current Assets

Minor division 200 001 Bank

200 002 Cash
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 Data Processing Cycle
3
DATA STORAGE Coding Techniques : Group Codes
• Ledger
• Coding Techniques ● more sophisticated form of block codes.
• Audit Trail
• Computer-based ● represent complex items or events or part involving two or more pieces of data with
storage concepts specific meaning.
● positioning of digits in code provide meaning

Example: Example in business:

Students ID Number : 2006001 Tracking sales : 040947621499
Data
Digit position Meaning Digit position
Processing Meaning
1-2 Year 1-2Cycles Store number
3-4 Month 3-4 Department store
5-7 Student Number 5-10 Item number
11-12 Salesperson

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 Data Processing Cycle
3
DATA STORAGE Coding Techniques: Mnemonic Codes
• Ledger
• Coding Techniques ● Designed so that it is easier to remember
• Audit Trail
• Computer-based ● Combination of letter and number
storage concepts ● Include some aspect that will refer to the item

Examples:
● ACC is the code for courses in accounting programme
● ACC2663 : is the code for a Computerised Accounting
Data course in accounting
programme, Processing
Cycles

Examples in business:
● Inventory Item (Eg: Dry300W05)
● Customers name (Eg: Jamilah : JAM001)
● Suppliers name (Eg: H. Chan : CHAN20)

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 Data Processing Cycle
DATA STORAGE Guideline for better coding system

3 • Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts 04
Allow for growth
Be consistent with its
intended use

01 03
Data
Processing As simple as possible to:
Cycles
Be consistent with
business`s organizational ● minimize cost
structure. 02 ● facilitate memorization
● facilitate interpretation
● ensure employee
acceptance
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Test your knowledge 10

KPMAM Students ID Number

MDA2001010

Which codes?
(Combination of mnemonic and
group codes)

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 Data Processing Cycle
3
DATA STORAGE Audit Trail
• Ledger
• Coding Techniques (Jejak Audit)
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

Purpose:
● Verify the
transactions occurred Method:
● Verify the transaction ● From point of origin to
recorded correctly final
● Identify fraud ● From final to point of
origin
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 Data Processing Cycle
3
DATA STORAGE Computer-based storage system
• Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

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https://youtu.be/Q4rRoPzP4EA
 Data Processing Cycle
3
DATA STORAGE Computer-based storage system
• Ledger
• Coding Techniques
• Audit Trail
• Computer-based
storage concepts

Data
Processing
Cycles

Entity Place, person, thing or something an organization wishes to store data about
Attributes: Facts about the entity
Field: Where attributes are stored
Data value: The actual value stored in a field describes particular attributes of an entity
Records: Group of related attributes about an entity
File: Group of records
Database: Groups of files 21
 Test your knowledge 15

Relate the table with the following terms:

● Entity
● Attributes
● Field
● Data value
● Records
● File
● Database

# Maklumat di atas adalah rekaan semata-mata.

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 Data Processing Cycle
4 INFORMATION OUTPUT
• Document
• Report
• Database query
●
●
Softcopy
Hardcopy

Data
Processing
Cycles

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Goal Congruence

Data
Processing
Cycles

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Goal Conflict

Data
Processing
Cycles

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Enterprise Resources System

ERP systems are

modular and
centralized
database
(integrated).
Data
Processing Entries in one
Cycles
module will
automatically
update other
modules.

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Enterprise Resources System

Data
Processing
Cycles

https://www.youtube.com/watch?v=bdJeaFwyLJQ&t=41s 27
 ERP Disadvantages

TIME
Take years to select and fully
implement ERP system
CHANGES TO BUSINESS PROCESS
Mapping current business process to
ERP software

COST
Hardware, software and consulting
cost

COMPLEXITY
The challenge to integrate many
different business activities and
EMPLOYEE RESISTANCE system
Need training and experience to use
ERP.

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 New Technology

BLOCK CHAIN CLOUD

A type of database. a digital database BL Servers that are accessed over the
containing information (such as CH OCK Internet, and the software and
AI
records of financial transactions) that N
OUD databases that run on those servers..
can be simultaneously used and CL
shared within a large decentralized,
publicly accessible network.
ARTIFICIAL
INTELLIGENCE

ARTIFICIAL INTELLIGENCE
Refers to the simulation of human intelligence in
machines. It is the ability of a computer program
to learn and think

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New Technology (Blockchain)

https://www.youtube.com/watch?v=SSo_EIwHSd4 30
New Technology (Cloud)

https://www.youtube.com/watch?v=KIb6Gkdfkds 31
New Technology (Artificial Intelligence)

https://www.youtube.com/watch?v=nb6f4pnw9qc 32
THANK YOU

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