Sunteți pe pagina 1din 42

Accounting Information Systems:

Essential Concepts and Applications

Fourth Edition by Wilkinson, Cerullo, Raval,


and Wong-On-Wing

Chapter 5: Computer-Based
Transaction Processing

Slides Authored by Somnath


Florida Atlantic University

Bhattacharya, Ph.D.

Transaction Processing
Systems
A fundamental task in any AIS is to
process transactions affecting the
organization
Transaction processing
systems(Ss) involve three stages:
Data entry
Data and file processing
Output preparation

Benefits of Understanding
Transaction Processing
Systems
Recognize limitations in currently installed
Transaction Processing Systems such as:
inadequate data controls
inefficient processing
out-of-date files
stored data that cannot be accessed quickly
data that is poorly classified and coded

Recommend new or improved processing


approaches and storage methods

Layout of Input-ProcessOutput Discussion


D a ta P r o c e s s in g M o d e l
In p u t
O n lin e

M a y le a d to
R e a ltim e P r o c e s s in g

P ro c e s s
O fflin e
A lw a y s B a tc h e d
P r o c e s s in g

M a y le a d to
B a tc h e d P r o c e s s in g

P e r io d ic
(B a tc h e d )

D ir e c t
U p d a tin g

O u tp u t
R e a ltim e
(Im m e d ia te )

S e q u e n tia l
U p d a tin g

S e q u e n tia l U p d a tin g
a fte r O n lin e D a ta E n tr y

S e q u e n tia l U p d a tin g
fro m B a tc h e d
(O fflin e ) In p u ts

Data Entry
Most transactions are initiated by business
events triggered by various agents or by
instructions within a computer program
Other transactions are initiated by the
passage of time, e.g., interest accruals
Computer-based systems employ an offline or on-line approach to data entry

Off-line Data Entry


Off-line refers to input devices not directly
connected to the computer. Examples are
key-to-tape, key-to-disk, and OCR
readers
Data must be first captured on source
documents and similar transactions are batched
together
Batched transactions are transcribed into
machine-readable form using an off-line device
Turnaround documents may be
used as
direct input into a system

On-line Data Input


On-line refers to devices that are directly and
continuously connected to a computer system
In on-line data entry, transaction data are entered
into the computer directly as they occur
Characteristics of on-line data entry may include:
nonexistence of source documents (telephones,
face-to-face conversations)
input of data using source data automation
(scanners at POS terminals)
origination of data by parties external to the
firm (ATM machines, telephone touch-tone
based transactions)
capture of data at remote sites (remote job
entry or remote batch processing)

Input Documents
Input documents typically do the
following:

Authorize Subsequent Transactions


Trigger Desired Actions
Reflect Accountability
Provide Data for Output and Reference

On-line Data Entry


design
Four factors that can reduce the tendency for
errors in on-line data entry are:
Menus that clearly define alternative actions
Dialogue prompts that display suggestions or
questions to the user
Graphical user interfaces that allow a user to
make selections
Preformatted screens that display formats for
transaction documents. These can be
associated with menu options

Advantages of On-line
versus Off-line Data
Entry
Off-line data entry offers the
advantages of economy and
productivity
On-line data entry offers the
advantages of timeliness,
flexibility,
simplicity

and

Options in Computer-Based
Transaction Processing
Source of
Differentiation

Source(s) of
Transactions
Focus of
Transaction
Data
Input
Approach
Timing of
Processing
Mode of
Processing
Timing of
Outputs
Users of
Information

Figure 5-7

Options

Main
Computer Site
Batches of
Events

Remote

Off-line

On-line

Periodic
(delayed)
Sequential

Immediate
(real- time)
Direct

Spooled

Immediate

Currency not
critical

Currency
critical

Individual
Events

Data Processing Methods


Batch data processing involves
the processing of data in groups (or
batches) of like transactions at
periodic intervals. Used when
transaction activity is low or periodic
Real-time processing consists of
processing each transaction as it
arises and is captured

Batch Processing Method


In batch processing, transaction data are stored in a
transaction file until a master-file update is performed. The
storing of transaction data in a transaction file may occur
either through off-line or on-line entry of data
Advantages of batch processing include:
processing can be done in background mode
processing is only performed when needed
batch processing leaves a good audit trail
Disadvantages:
the master-file is only as current as last processing run.
If transactions are batched before entry, any errors in
transaction data cannot be corrected at the time of entry.
They must be corrected and reentered either through a
separate run or during the next processing cycle

Real-time Processing
Method
Real-time processing involves the processing
of each transaction as it arises and is
captured
Data from each transaction are entered via
an online device and posted directly and
immediately to the affected record(s) in one
or more master files
Real-time processing may be interactive in
that it may involve direct interactions
between humans and computerized systems

Real-time Processing
Method
Advantages of real-time processing include:
This method keeps the master file more current
than the batch runs
Errors are caught at the time of data entry
Drawbacks of real-time processing include:
More complex and expensive than batch
systems
Harder to audit
Controls and backup procedures are more
elaborate in order to guard against unwarranted
access and human error

Document Flowcharts
Flowcharts are pictorial representations of
transaction processing systems that portray
flows of some type
A Document Flowchart emphasizes the
hardcopy inputs and outputs and their flows
through organizational units
Auditors and accountants may use
document flowcharts when analyzing a
current system for weaknesses in controls
and reports

Common Document
Flowcharting Symbols - I
Punched Card

Floppy Disk

Keying operation

Manual Operation

Document

Connector between
two points on a
flowchart

Multiple copies of
a specific document

Journal or ledger

Common Document
Flowcharting Symbols - II
Permanent file of
documents

Envelope

Information flow
Document flow
Annotation for
additional
explanation

Adding machine
tape used for
batch control

A Sample Document
Flowchart

Requesting DepartmentCentral Supplies Department

12

Goods Requisition
Form

Goods Requisition
Form

A
File

System Flowcharts
System Flowcharts depict the flows of data

and processing steps in an AIS


They use symbols that are industry
conventions standardized by the American
National Standards Institute (ANSI)

Flowcharting symbols are grouped as


input-output symbols, processing symbols,
storage symbols, data and information
flow symbols, and miscellaneous symbols

System Flowchart
Symbols Input/Output
Keying Operation
Manual Input

Punch Card
Can also be output.
These are rarely
used nowadays.

Document
Also output as
reports

Display
Used when type of media is unknown
or for manual card files, ledgers, batch logs, etc.

General Purpose
Input-Output
File

System Flowcharting
Symbols Processing
Manual Operation

Auxiliary
Operation

Processing
Sorting
Collate
Also known as off-line process

System Flowcharting
Symbols Storage
Punched Card

Input/Output

Punched
Paper Tape

Document

Magnetic
Tape

Magnetic
Disk

Online Storage

Off-line
Storage

Systems Flowcharting
Symbols Connectors
Start/Stop
Start/Stop

Terminal
Can also be an external
entity

AA

Logic Flow

On-page
connector
Off-page
Connector

Telecommunication
Link

System Flowcharting
Symbols Miscellaneous - I
Data Preparation
Communication Link
Termination
Can also be an external entity

System Flowcharting
Symbols Miscellaneous - II
Bridge for
crossing flows

Batch total any total

Annotation for
additional
explanation

Goods; e.g.,
inventory
shipment

Structure Charts
A structure chart portrays the hierarchy of levels and
interrelationships within a system
Computer programmers use high-level structure charts to
determine the overall structure of program modules
required to operationalize a system
Low-level structure charts, prepared during the detailed
design phase, enable computer programmers to create
source code sub-routines that help in the implementation
of systems
Source code sub-routines are frequently written in
Structured English
Structured English are English-like statements generated
from low-level structured charts. These statements are
then converted to detailed source programming code
instructions

A High-Level Structure Chart for


a Course Registration System
C la s s R e g is t r a t io n
P r o c e s s in g S y s t e m
R e a d C o u rs e
S c h e d u le s
O th e r In p u ts
G e t C o u rs e
S c h e d u le s
O t h e r F ile s

Figure 5-11

E d it C o u r s e
S c h e d u le s

P ro c e s s C o u rs e
S c h e d u le s

U p d a te C o u rs e
S c h e d u le s
O t h e r F ile s

O u tp u t C o u rs e
S c h e d u le s
O th e r In p u ts
O u t p u t R e g is t r a t io n
R e p o rts

O u tp u t C o u rs e
S c h e d u le s
O th e r R e p o rts

Sequential vs. Direct


Updating

Sequential Updating from Batched/Online Inputs: To update a


master file sequentially within a computer-based application, the
processing program starts at the beginning master file record. It
then reads every record in the file, changing data in each record
affected by a transaction (see Figs. 5-6 and 5-7 & 5-8).
Sequential Updating requires sorting of the transaction file by the
master file sorting key (e.g., transactions originally sorted on
transaction_no. must now be resorted by master-file customer_no.).
Since all the records in a master file are read during the update,
sequential updating increases the processing time significantly if
only a few records are to be updated.
Direct Updating: Instead of processing a batch of transactions
sequentially against an entire master file, each transaction in the
batch can be posted directly to the affected records.
Direct Updating with batched transactions eliminates the sorting
step.
Direct Updating is only feasible if the master files are stored on direct-access
storage.

DFD Showing Batched Sequential


Processing of Transactions
Source Documents
Origination of
Transactions

Batch
Documents &
Compute
Totals

Batch of
Documents

Batch Totals
Prepare
Financial
Outputs
Financial Statement
& other Outputs

Recipients
of
Outputs

Subsidiary and
General ledgers
Updated
Records

Prepare Batch
Documents
for Sequential
Processing
Post Data to
Accounting
Records &
Verify Batch
Totals

Sorted Batch
of Documents

Transaction Data
(Journals)
Figure 5-12

Enterprise Resource
Planning
ERP is a software with an integrated set of applications
for enterprise-wide use in functional areas such as
finance, accounting, human resource management,
manufacturing, logistics, etc.
ERP systems permit an integration of data and
applications. Both financial and non-financial data can
be integrated
ERP systems also facilitate access to data that are
within the firm but outside the ERP system
Standardization of worldwide systems, consistent and
accessible data, and on-line processing of data result in
firm-wide data availability

File Management Issues


A File is a collection of related data
stored together for future use
All computerized applications involving
transaction processing typically employ
one or more files
Because of their involvement with
transaction processing, and auditing of
such processing, accountants need to be
aware of file management issues

File Access - I
Sequential Access: This requires
each record in a file to be scanned,
beginning with the first record in the
file
The sequential access method is
inefficient for finding individual records.
However, it is very effective if a large
number of records in a file need to be
accessed

File Access - II

Direct Access: This denotes any method that involves the accessing of
desired records in some way other than by an exhaustive search
through all the records in a file
Significant methods of Direct Access include:

Indexed sequential file


Randomization
Binary searches
Linked lists
Inverted lists

All Direct Access methods require direct-access storage media such


as magnetic disks and the use of Pointers
Pointers are data elements whose values specify or point to the
physical storage addresses where associated data are stored. In
contrast to the other data elements of a record, a pointer
provides direction rather than content

Indexed Sequential File - I


This type of file combines a
sequential arrangement of records
with an index that cross-references
the primary key values of the records
The index enables individual records
to be retrieved quickly, while the file
retains the benefits of sequential
processing

Indexed Sequential File - II


Data File

Index File

1
3
2

Emp. Name Pointer


Albany
6
Carter
1
Finsbury
3
Goodrich 4
Jenkins
9
Petersen
8
Schneider 2
Sykes5
Williamson 7

Binary Search

Addr Emp. #
1
2
3
4
5
6
7
8
9

500
501
503
504
506
508
509
512
513

Name

Carter
Schneider
Finsbury
Goodrich
Sykes
Albany
Williamson
Petersen
Jenkins

Individual Record Retrieval


Using the ISAM Method

Data File

Index File

Product #
Pointer
105010
110020
115015

Inverted list on
Product #

1
7
12

Product #
1. 105010
2. 106950
3. 107000
4. 108020
5.
6.
7. 110020
8. 110410
9. 114650
10.
11.
12. 115015
13. 116000

Description
Dye-12oz.
Dye-16 oz.
Dye-24 oz.
Conc-1 gal.

Conc-2 gal.
Conc-4 gal.
Conc-6 gal.

Reagent
Additive

Randomization
This is the access procedure in which computations are
performed to generate addresses for individual records.
These computational procedures are known as
Hashing Schemes.
When the records of a file are located throughout a direct
access storage medium by means of a randomizing
procedure, the file is described as a random file.
A Hashing Scheme provides a random file with its major
advantage: fast access.
Hashing schemes are typically faster than the table
lookup procedures required with indexed sequential files.

Coding
AISs depend on coding to record, store, classify
and retrieve financial data.
Computer systems most often use numeric codes
or alphanumeric codes for processing accounting
transactions.
Purposes of coding:
uniquely identifies transactions and accounts
compresses data
aids in classification process
conveys special meanings

Coding Systems
Mnemonic Codes give visible clues
concerning the objects they represent
Sequence Codes are the simplest type of
coding scheme that assign numbers or letters
in consecutive order
Block Codes assign a series of numbers within
a sequence to entities or events having
common features
Group Codes reveal two or more dimensions
or facets pertaining to an object

Design Considerations in
Coding
Codes should serve some useful
purpose

Codes should be consistent


Codes should be standardized
throughout the organization
Codes should plan for future
expansion

Accounting Information Systems:


Essential Concepts and Applications
Fourth Edition by Wilkinson, Cerullo,
Raval, and Wong-On-Wing

Copyright 2000 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the express
written permission of the copyright owner is unlawful. Request for
further information should be addressed to the Permissions Department,
John Wiley & Sons, Inc. The purchaser may make back-up copies for
his/her own use only and not for distribution or resale. The publisher
assumes no responsibility for errors, omissions, or damages, caused by
the use of these programs or from the use of the information contained
herein.

S-ar putea să vă placă și