1.1.1. The data processing cycle is a descriptive means of demonstrating the operations performed on data to make the information meaningful for decisions.
1.2. Data Input
1.2.1. Capture transaction data triggered by a business activity (event).
1.2.2. Make sure captured data are accurate and complete.
1.2.3. Ensure company policies are followed (e.g., approval of transaction).
1.3. Data Capture
1.3.1. Activity of interest
1.3.2. Resources affected (e.g., inventory and cash)
1.3.3. People who participated in the activity (e.g., customer and employee)
1.4. Data Storage
1.4.1. Important to understand how data is organized
1.4.2. Accounts receivable subsidiary ledger would record detailed data for customers whom buy products or services on credit.
1.4.3. The Importance of Data Storage
1.4.3.1. Many organizations change and evolve, but rarely do accountants have the luxury to really think ahead to organize how they want the information to be stored. Yet many AIS allow you to run special reports based on the coding schemas in the chart of accounts.
2. coding
I. Coding Techniques
I.1. Sequence Codes—items numbered consecutively to account for all items (i.e., pre-numbered forms)
I.2. Block Code—blocks of numbers reserved for specific categories of data (i.e., product numbers that start with a 2 are refrigerators)
I.3. Group codes—two or more subgroups of digits used to code items (i.e., car vin #’s)
I.4. Mnemonic codes—letters and numbers interspersed to identify an item (i.e. Dry300W05 is low end (300), white (W) dryer (DRY) made by Sears (05))
II. Designing a Coding System
II.1. 1. The code should be consistent with its intended use, which requires the code designer to determine the types of system outputs desired by users prior to selecting the code.
II.2. 2. Make sure the code allows for growth in the number of items to be coded.
II.3. 3. Make the coding system as simple as possible in order to minimize costs, facilitate memorization and interpretation of coding categories, and ensure employee acceptance.
III. Computer-Based Storage Basic Concepts
III.1. Data is stored in master files or transaction files.
III.2. Files (master/transaction) which include: Records (entities) which include:
Attributes (individual fields)
IV. Data Processing
IV.1. Creating new records
IV.2. Reading existing data
IV.3. Updating previous record or data
IV.4. Deleting data
V. Batch Processing
V.1. Periodic updating of data is referred to as batch processing.
V.2. Under the online entry, real- time processing method……
3. Information Output
A. Online (soft copy)
B. Printed out (hard copy)
B.1. Document (e.g., sales invoice)
B.2. Report (e.g., monthly sales report)
B.3. Query - A request for the database to provide the information needed to deal with a problem or answer a question.
C. Financial Statements
C.1. There are four main types of financial reports that were covered in Principles of Accounting I & II courses, the balance sheet, income statement, statement of owner’s equity, or statement of stockholder’s equity, and the statement of cash flows.
4. eps
4.1. ERP systems are modular, with each module using best business practices to automate a standard business process. This modular design allows businesses to add or delete modules as needed.
4.2. Typical ERP modules
4.2.1. Financial (general ledger and reporting system)
