4 Steps in the Data Processing Cycle
Data input, data storage, data processing, and information output.
First step in processing input. Capture transaction data, enter it into system.
Documents used to capture transaction data at its source – when transaction takes place. Examples include sales orders, purchase orders, and employee time cards.
Records of company data sent to an external party and then returned to the system as input. These documents are in machine-readable format to facilitate their subsequent processing as input records. An example is a utility bill.
Types of AIS storage
Paper based (ledgers/journals), computer based.
Data must be collected about three facets of each business activity. What are they?
The business activity, the resources it affects, the people who participate.
Record infrequent or specialized transactions.
Record numerous repetitive transactions, for example sales.
A ledger that contains summary level data for every asset, liability, equity, revenue, and expense account of the organization.
A ledger used to record detailed data for a general ledger account with many individual subaccounts, such as accounts receivable, inventory, and accounts payable.
Another title given to general ledger account. this account summarizes the total amounts recorded in a subsidiary ledger. For example, accounts receivable control account in the general ledger represents the total amount owed by all customers. The balances in the accounts receivable subsidiary ledger indicate the amount owed by each specific customer.
Systematic assignment of numbers or letters to items to classify and organize them.
items are numbered consecutively so that gaps in the sequence code indicate missing items that should be investigated. Examples include prenumbered checks, invoices, and purchase orders.
Specific range of numbers are associated w/ specific categories of data, thereby helping to organize the data. An example is a chart of accounts.
Two or more subgroups of digits that are used to code an item. Position of digits provide meaning. This type of code is often used in conjunction with a block code.
Source Data Automation
The collection of transaction data in machine-readable form at the time and place of origin. Examples are point-of-sale terminals and ATMs.
Letters and numbers that are interspersed to identify an item. The mnemonic code is derived from the description of the item and is usually easy to memorize.
Chart of Accounts
Type of block coding. Listing of all the numbers assigned to the balance sheet and income statement accounts. The account numbers allow transaction data to be coded, classified, and entered into the proper accounts.
Journal used to record infrequent or nonroutine transactions, such as loan payments and end-of-period adjusting and closing entries.
A journal used to record a large number of repetitive transactions such as credit sales, cash receipts, purchases, and cash disbursements.
A path that allows a transaction to be traced through a data processing system from point of origin to output or vice versa. It is used to check accuracy and validity of ledger postings and to trace changes in general ledger accounts from their beginning balance to ending balance.
The item about which information is stored in a record. Person, place, or thing. Examples include an employee, an inventory item, and a customer.
Facts about an entity (properties/numbers). Examples are employee number, pay rate, name, and address.
Where attributes of an entity are stored. For example, in a spreadsheet each row might represent a customer and each column is an attribute of a customer. Each cell in a spreadsheet is a field.
A set of fields whose data values describe specific attributes of an entity, such as all payroll data relating to a single employee. An example is a row in a spreadsheet.
Actual value stored in a field. It describes a particular attribute of an entity. For example, the customer name field would contain “ZYX Company” if that co. was a customer.
A group of related records, such as the payroll records of all employees.
A permanent file of records that stores cumulative data about an organization. As transactions take place, individual records within a master file are updated to keep them current.
A set of interrelated, centrally controlled data files that are stored with as little data redundancy as possible. A database consolidates records previously stored in separate files into a common pool and serves a wide variety of users and data processing applications.
What is conceptually similar to a journal in a manual AIS?
Four types of data processing? (CRUD)
-creating new records (add customer)
-reading existing data
-updating previous record or data
Updating accumulated groups or batches of transaction records periodically, such as daily or weekly. Transaction records are usually sorted into some sequence (numerical/alphabetical) before processing.
Online, Real-Time Processing
The computer system processes data immediately after capture and provides updated information to users on a timely basis.
A record of a transaction or other company data. Examples include checks, invoices, receiving reports, and purchase requisitions.
System output, organized in a meaningful fashion, that is used by employees to control operational activities, by managers to make decisions and design strategies, and investors and creditors to understand a company’s business activities.
A request for the database to provide the information needed to deal with a problem or answer a question. the information is retrieved, displayed or printed, and/or analyzed as requested.
Enterprise Resource Planning (ERP) System
A system that integrates all aspects of an organization’s activities – such as accounting, finance, marketing, human resources, manufacturing, inventory management – into one system. An ERP system is modularized; companies can purchase the individual modules that meet their specific needs. An ERP facilitates information flow among the company’s various business functions and manages communications with outside stakeholders.
Advantages of ERP system
-better flow of info, stored in centralized database that can be accessed by various depts. which also improves customer service
-data captured once
-improve access of control of data through security settings
-standardization of procedures and reports
Disadvantages of ERP system
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