Professional Documents
Culture Documents
CH 2
CH 2
CH 2
Introduction to
Transaction Processing
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Revision:
External transactions:
Sale of goods/services, purchase of inventory,
discharge of financial obligations, receipt of cash
Internal:
Depreciation of fixed assets, application of labor,
raw material, overhead of production process,
transfer of inventory from one department to
another
Figure 2-1
Hall, Introduction to Accounting Information Systems, 7e 9
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Expenditure Cycle:
Manual system:
Documents
Journals
Ledgers
Audit trail
CB Systems
Master file
Transaction file
Reference file
Hall, Introduction to Accounting Information Systems, 7e 13
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Manual system: Documents
Figure 2-8
Physical Financial
Sales- 1 1 Car
Assigned Type
person
1 M
Customer Places Order
M M
Vendor Supply Inventory
N
Process
Description
Direction of
data flow
Figure 2-12
Source document or
report On-page connector
Manual operation
Off-page connector
File for storing source
documents and
reports Description of process
or comments
Accounting records
(journals, registers,
Document flowline
logs, ledgers)
Figure 2-17
Hall, Introduction to Accounting Information Systems, 7e 30
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Flowchart Showing Stated Fact I Translated
into Visual Symbols
Sales Department Credit Department Warehouse Shipping Department
Customer
Customer
Order
Prepare
Sales
Orders
Sales
OrderSales
#1
Order #1
Sales
Order #1
Sales
Order #1
Figure 2-18
Figure 2-20
Computer process
Process flow
Real-time
Direct access storage (online)
device connection
Video display
Magnetic tape device
Figure 2-21
Hall, Introduction to Accounting Information Systems, 7e 34
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Flowchart Showing Translation of
Facts 1, 2, and 3 into Visual Symbols
Terminal start or
Logical process
end operation
Input/output
operation
Decision
Flow of logical
process
Figure 2-24
Hall, Introduction to Accounting Information Systems, 7e 37
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Modern Systems versus Legacy Systems
Modern systems characteristics:
client-server based and process transactions in real time
use relational database tables
have high degree of process integration and data sharing
some are mainframe based and use batch processing
Some firms employ legacy systems for certain aspects
of their data processing.
Accountants need to understand legacy systems.
Legacy systems characteristics:
mainframe-based applications
batch oriented
early legacy systems use flat files for data storage
later legacy systems use hierarchical and network databases
data storage systems promote a single-user environment that
discourages information integration
Figure 2-28
Figure 2-30
Hall, Introduction to Accounting Information Systems, 7e 40
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Computer-Based Accounting
Systems
Edited
Transactions
Transactions
Old Master
(father)
AR
• Disadvantages:
– arbitrary information
– overused
Hall, Introduction to Accounting Information Systems, 7e 52
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Alphabetic Codes
Used for many of the same purposes as
numeric codes
Can be assigned sequentially or used in
block and group coding techniques
May be used to represent large numbers of
items
Can represents up to 26 variations per field
Disadvantage:
arbitrary information
Hall, Introduction to Accounting Information Systems, 7e 53
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Mnemonic Codes
Alphabetic characters used as
abbreviations, acronyms, and other types
of combinations
Do not require users to memorize the
meaning since the code itself is
informative – and not arbitrary
NY = New York
Disadvantages:
limited usability and availability
Hall, Introduction to Accounting Information Systems, 7e 54
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.