7-1

Chapter F7
Computerized
Computerized
Accounting
Accounting
Systems
Systems
Electronic
ElectronicPresentation
Presentation
by
by Douglas
Douglas Cloud
Cloud
Pepperdine
PepperdineUniversity
University

7-2

Objectives
Objectives
1. Identify the primary
components
of a
Once
you
have
Once you have
computerized
accounting
system.
completed
this
chapter,
completed this chapter,
2. Describe you
the
components
of
a
computerized
should
be
able
to:
you should be able to:
accounting system used to process data and
produce useful information.
3. Describe how data are processed in various
modules of an accounting system.
Continued
Continued

7-3

Objectives
Objectives
4. Explain the use of relational databases to
perform accounting functions.
5. Describe how a database system can be
used to create a simple accounting system.

7-4

Objective
Objective

Identify the primary

components of a
computerized
accounting system.

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
Systems
Systems that
that integrate
integrate most
most of
of the
the
business
business information
information functions
functions as
as aa
basis
basis for
for management
management decisions
decisions are
are
referred
referred to
to as
as enterprise
enterprise resource
resource
planning
planning (ERP)
(ERP) systems.
systems.

7-5

Exhibit
Exhibit11

Components of an Accounting
Information System

7-6

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The sales module receives
order data from customers and
maintains accounts receivable
information.

7-7

Exhibit
Exhibit11

Components of an Accounting
Information System

7-8

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The purchases and inventory
management module provides
purchase order data to vendors.
Vendors
Vendors are
are those
those who
who supply
supply
specific
specific products
products to
to aa company.
company.

7-9

Exhibit
Exhibit11

Components of an Accounting
Information System

7-10

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The human resources module
maintains data about
employees, including hours
worked and wage rates.
ItIt isis used
used for
for preparing
preparing payroll
payroll and
and
payroll
payroll tax
tax information.
information.

7-11

Exhibit
Exhibit11

Components of an Accounting
Information System

7-12

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The production module tracks
the flow of costs through the
manufacturing process.

7-13

Exhibit
Exhibit11

Components of an Accounting
Information System

7-14

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The asset management module
identifies long-term asset costs,
their expected useful lives, and
where these assets are located
in the company.

7-15

Exhibit
Exhibit11

Components of an Accounting
Information System

7-16

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The financial management
module keeps track of debt,
repayment schedules, interest
rates, and shareholder
information.

7-17

Exhibit
Exhibit11

Components of an Accounting
Information System

7-18

Components
Components of
of aa Computerized
Computerized
Accounting
Accounting System
System
The general ledger/financial
reporting module provides
information for use by external
stakeholders, including
shareholders and government
regulators.

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7-20

Subsidiary
Subsidiary Accounts
Accounts
Moms Cookie Company
Subsidiary
Subsidiary accounts
accounts include
include transactions
transactions
for
for Moms
Moms Cookie
Cookie Companys
Companys individual
individual
customers,
customers, suppliers,
suppliers, or
or products.
products. Records
Records
for
for all
all subsidiary
subsidiary accounts
accounts of
of aa particular
particular
type
type are
are maintained
maintained in
in aa subsidiary
subsidiary ledger.
ledger.

7-21

Control
Control Accounts
Accounts
Control
Control accounts
accounts are
are summary
summary accounts
accounts
that
that maintain
maintain totals
totals for
for all
all subsidiary
subsidiary
accounts
accounts of
of aa particular
particular type.
type.
Example:
Example: The
The balance
balance for
for Accounts
Accounts
Receivable
Receivable isis the
the sum
sum of
of the
the
balances
balances of
of all
all subsidiary
subsidiary accounts
accounts
for
for the
the companys
companys customers.
customers.

7-22

Control
Control Accounts
Accounts
Records
Records for
for each
each control
control account
account are
are
maintained
maintained in
in aa companys
companys general
general ledger.
ledger.

7-23

Objective
Objective

Describe the components

of a computerized
accounting system used to
process data and produce
useful information.

7-24
Exhibit
Exhibit22

Data Processing in a Computerized

Information System

7-25

Using
Using computer
computer
networks,
networks, such
such as
as
the
the Internet,
Internet, to
to
make
make customer
customer
sales
sales isis referred
referred
to
to as
as E-business.
E-business.

7-26

Application
Application
software
software includes
includes
the
the computer
computer
programs
programs that
that
permit
permit data
data to
to be
be
recorded
recorded and
and
processed.
processed.

7-27

A
Adatabase
database isis aa set
set of
of
computerized
computerized files
files in
in
which
which company
company data
data
are
are stored
stored in
in the
the form
form
that
that facilitates
facilitates
retrieval
retrieval and
and
updating
updating of
of the
the data.
data.

7-28

A
Adatabase
database
management
management system
system
controls
controls database
database
functions
functions to
to ensure
ensure
data
data are
are recorded
recorded
properly
properly and
and are
are
accessed
accessed only
only by
by
authorized
authorized users.
users.

Exhibit
Exhibit 44

A Computer Network

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7-30

A computer network
is a set of hardware
devices that are
linked so they can
exchange data among
themselves using
software.

7-31

Objective
Objective

Describe how data

are processed in
various modules of
an accounting
system.

Exhibit
Exhibit55

Customer
Customer

A Sales Processing Module

sales
order

Sales
Sales

Customer file
Sales file

invoice
cash

goods

Accounting
Accounting
General
Ledger files
Shipping
Shipping

Inventory file

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7-33

Good
Good internal
internal controls
controls requires
requires
that
that the
the personnel
personnel who
who account
account
for
for the
the cash
cash should
should not
not also
also have
have
physical
physical access
access to
to the
the cash.
cash.

Exhibit
Exhibit66

Vendor
Vendor

A Purchases and Inventory

Management Module
Purchase
order

Purchasing
Purchasing

Vendor files

Accounting
Accounting

General
Ledger files

Receiving
Receiving

Inventory files

invoice
cash

goods

7-34

7-35

The
The Purchasing
Purchasing and
and Inventory
Inventory
Management
Management Module
Module
The
The interaction
interaction
of
of aa company
company
and
and its
its suppliers
suppliers
isis known
known as
as
supply-chain
supply-chain
management.
management.

7-36
Exhibit
Exhibit77

Employee
Employee

A Human Resources Module

Time
worked

Cash
Cash and payroll
tax information
Government
Government

Production
Production

Production files

Accounting
Accounting

General
Ledger files

Personnel
Personnel

Employee files

7-37
Exhibit
Exhibit88

Sales
Sales

A Production Module

Orders/
forecast Manufacturing
Manufacturing

Inventory files
Employee files

Cost
Cost
accounting
accounting

Stores/
Stores/
warehouse
warehouse

General
Ledger files
Plant Asset files

7-38

Objective
Objective

Explain the use of

relational databases to
perform accounting
functions.

7-39

Relational
Relational Database
Database
A
Arelational
relational database
database
isis aa set
files
set of
of related
related
filesisis aa file
A
Atable
table
file that
that
that
so
that
that are
are linked
linked
so
contains
data
containsthat
data represented
represented
files
updated
files can
can be
beas
updated
rows
as
rows and
and columns.
columns.
Each
attribute
Each
attribute
and
information
can
and information
can identifies
Each
atable
Each column
column
identifies
a
in
the
is
in
the
table
is
be
from
the
be retrieved
retrieved
from
the
particular
of
the
particular attribute
attributereferred
of
the to
as
referred
to
as
files
efficiently.
files efficiently.
entity
entity or
or process
processaa field.
field.
described
described in
in the
the table.
table.

7-40

Objective
Objective

Describe how a
database system can be
used to create a simple
accounting system.

7-41

Copying
Copying and
and Opening
Opening
the
the Database
Database
ItIt isis highly
highly
recommended
recommended that
that
the
the database
database be
be
copied
copied to
to aa hard
hard
drive
drive before
before itit isis
used.
used.

7-42

Copying
Copying and
and Opening
Opening
the
the Database
Database
ItIt isis aa good
good idea
idea
to
to make
make several
several
copies
copies of
of the
the
database
database under
under
different
different names.
names.
MomsCookies1.mdb,
MomsCookies1.mdb, MomsCookies
MomsCookies 2.mdb,
2.mdb, etc.
etc.

7-43

Database
Database Contents
Contents
Tables contain the data stored in the system.
Queries are short programs that permit a
user to obtain data from one or more tables.
Forms provide a means for entering or
reading data stored in the database.
Reports provide summary information
intended primarily to be printed.
Continued
Continued

7-44

Database
Database Contents
Contents
Macros are sequences of steps a user
performs to complete a particular task.
Pages provide a means of creating web
documents for accessing a database.
Modules are computer programs to provide
higher level functions in the database.

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CHAPTER F7
TTHE
HE E
END
ND

7-46