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AIS Chapter 2

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62 views20 pages

AIS Chapter 2

Uploaded by

Xander Mamaradlo
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 PPTX, PDF, TXT or read online on Scribd
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Chapter 2

Overview of Transaction Processing and ERP Systems


Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-1
Learning Objectives

🞑 Describe the four major steps in the data processing


cycle.
🞑 Describe the major activities in each cycle.
🞑 Describe documents and procedures used to collected
and process 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 ERP systems to process
transactions and provide information.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-2


Data Processing Cycle

Input Process Output

Storage

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-3


The Data Processing Cycle Determines

🞑 What data is stored?

🞑 Who has access to the data?

🞑 How is the data organized?

🞑 How can unanticipated information needs be met?

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-4


Data Input—Capture

🞑 As a business activity occurs data is collected about:


1. Each activity of interest
2. The resources affected
3. The people who are participating

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-5


Paper-Based Source Documents

🞑 Data are collected on


source documents
🞑 E.g., a sales-order form
🞑 The data from paper-
based will eventually
need to be transferred
to the AIS

🞑 Turnaround
🞑 Usually paper-based
🞑 Are sent from Org. Cust.
organization to
customer
🞑 Same document is
returned by customer to
organization Turnaround
Document

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-6


Source Data Automaton

🞑 Source data is captured


🞑 In machine-readable form
🞑 At the time of the business activity
🞑 E.g., ATM’s; POS

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-7


Data Input—Accuracy and Control

🞑 Well-designed source documents can ensure that data


captured is
🞑 Accurate
🞑 Provide instructions and prompts
🞑 Check boxes
🞑 Drop-down boxes
🞑 Complete
🞑 Internal control support
🞑 Prenumbered documents

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-8


Data Storage

🞑 Types of AIS storage:


🞑 Paper-based
🞑 Ledgers
🞑 Journals
🞑 Computer-based

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-9


Ledgers

🞑 General
🞑 Summary level data for
each:
🞑 Asset, liability, equity,
revenue, and expense

🞑 Subsidiary
🞑 Detailed data for a General
Ledger (Control) Account
that has individual sub-
accounts
🞑 Accounts Receivable
🞑 Accounts Payable

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-10


Journals

🞑 General
🞑 Infrequent or specialized transactions

🞑 Specialized
🞑 Repetitive transactions
🞑 E.g., sales transactions

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-11


Coding Techniques

🞑 Sequence Digit Position Meaning


🞑 Items numbered consecutively
1–2 Product Line,
🞑 Block size, and so on
🞑 Specific range of numbers are
associated with a category 3 Color
🞑 10000–199999 = Electric Range
4–5 Year of
🞑 Group Manufacture
🞑 Positioning of digits in code provide
meaning 6–7 Optional Features
1241000 12 = Dishwasher
🞑 Mnemonic
🞑 Letters and numbers
4 = White
🞑 Easy to memorize 10 = 2010
🞑 Code derived from description of item 00 = No Options

🞑 Chart of accounts
🞑 Type of block coding

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-12


Computer Based Storage
🞑 Entity
🞑 Person, place, or thing (Noun)
🞑 Something an organization wishes to store data about
🞑 Attributes
🞑 Facts about the entity
🞑 Fields
🞑 Where attributes are stored
🞑 Records
🞑 Group of related attributes about an entity
🞑 File
🞑 Group of related Records

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-13


File Types

🞑 Transaction
🞑 Contains records of a
business from a specific
period of time

🞑 Master
🞑 Permanent records
🞑 Updated by transaction
with the transaction file

🞑 Database
🞑 Set of interrelated files

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-14


Data Processing

🞑 Four Main Activities


1. Create new records
2. Read existing records
3. Update existing records
4. Delete records or data from records

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-15


Data Output Types

🞑 Soft copy
🞑 Displayed on a screen

🞑 Hard copy
🞑 Printed on paper

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-16


ERP Systems

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-17


Enterprise Resource Planning (ERP)

🞑 Integrate an organization’s information into one overall


AIS

🞑 ERP modules:
🞑 Financial
🞑 Human resources and payroll
🞑 Order to cash
🞑 Purchase to pay
🞑 Manufacturing
🞑 Project management
🞑 Customer relationship management
🞑 System tools

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-18


ERP Advantages

🞑 Integration of an organization’s data and financial


information

🞑 Data is captured once

🞑 Greater management visibility, increased monitoring

🞑 Better access controls

🞑 Standardizes business operating procedures

🞑 Improved customer service

🞑 More efficient manufacturing

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-19


ERP Disadvantages

🞑 Cost

🞑 Time-consuming to implement

🞑 Changes to an organization’s existing business


processes can be disruptive

🞑 Complex

🞑 Resistance to change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 2-20

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