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    Overview of Transaction Processing and ERP Systems

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    Rex Adarme

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    Overview of Transaction Processing and ERP Systems

    Uploaded by

    Rex Adarme
    32 views20 pages

    Original Title

    AIS

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    © All Rights Reserved
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    32 views20 pages

    Overview of Transaction Processing and ERP Systems

    Uploaded by

    Rex Adarme

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Chapter 2

    Overview of Transaction Processing and ERP Systems


    2-1
    Copyright © 2012 Pearson Education
    Learning Objectives

    Describe the four major steps in the data processing cycle.


    Describe the major activities in each cycle.
    Describe documents and procedures used to collected and
    process data.
    Describe the ways information is stored in computer-based
    information systems.
    Discuss the types of information that an AIS can provide.
    Discuss how organizations use ERP systems to process
    transactions and provide information.

    Copyright © 2012 Pearson Education 2-2


    Data Processing Cycle

    Copyright © 2012 Pearson Education 2-3


    The Data Processing Cycle Determines

    Copyright © 2012 Pearson Education 2-4


    Data Input—Capture

    As a business activity occurs data is collected about:


    1. Each activity of interest
    2. The resources affected
    3. The people who are participating

    Copyright © 2012 Pearson Education 2-5


    Paper-Based Source Documents

    Data are collected on source


    documents
    E.g., a sales-order form
    The data from paper-based
    will eventually need to be
    transferred to the AIS

    Turnaround
    Usually paper-based
    Are sent from organization
    to customer
    Same document is returned
    by customer to
    organization

    Turnaround Document

    Copyright © 2012 Pearson Education 2-6


    Source Data Automaton

    Source data is captured


    In machine-readable form
    At the time of the business activity
    E.g., ATM’s; POS

    Copyright © 2012 Pearson Education 2-7


    Data Input—Accuracy and Control

    Well-designed source documents can ensure that data


    captured is
    Accurate
    Provide instructions and prompts
    Check boxes
    Drop-down boxes
    Complete
    Internal control support
    Prenumbered documents

    Copyright © 2012 Pearson Education 2-8


    Data Storage

    Types of AIS storage:


    Paper-based
    Ledgers
    Journals
    Computer-based

    Copyright © 2012 Pearson Education 2-9


    Ledgers

    General
    Summary level data for each:
    Asset, liability, equity, revenue,
    and expense

    Subsidiary
    Detailed data for a General
    Ledger (Control) Account that
    has individual sub-accounts
    Accounts Receivable
    Accounts Payable

    Copyright © 2012 Pearson Education 2-10


    Journals

    General
    Infrequent or specialized transactions

    Specialized
    Repetitive transactions
    E.g., sales transactions

    Copyright © 2012 Pearson Education 2-11


    Coding Techniques

    Sequence Digit Position Meaning


    Items numbered consecutively
    1–2 Product Line, size,
    Block and so on
    Specific range of numbers are associated
    with a category 3 Color
    10000–199999 = Electric Range
    4–5 Year of
    Group Manufacture
    Positioning of digits in code provide
    meaning 6–7 Optional Features
    Mnemonic 1241000 12 = Dishwasher
    Letters and numbers 4 = White
    Easy to memorize 10 = 2010
    Code derived from description of item 00 = No Options
    Chart of accounts
    Type of block coding

    Copyright © 2012 Pearson Education 2-12


    Computer Based Storage
    Entity
    Person, place, or thing (Noun)
    Something an organization wishes to store data about
    Attributes
    Facts about the entity
    Fields
    Where attributes are stored
    Records
    Group of related attributes about an entity
    File
    Group of related Records

    Copyright © 2012 Pearson Education 2-13


    File Types

    Transaction
    Contains records of a
    business from a specific
    period of time

    Master
    Permanent records
    Updated by transaction
    with the transaction file

    Database
    Set of interrelated files

    Copyright © 2012 Pearson Education 2-14


    Data Processing

    Four Main Activities


    1. Create new records
    2. Read existing records
    3. Update existing records
    4. Delete records or data from records

    Copyright © 2012 Pearson Education 2-15


    Data Output Types

    Soft copy
    Displayed on a screen

    Hard copy
    Printed on paper

    Copyright © 2012 Pearson Education 2-16


    ERP Systems

    Copyright © 2012 Pearson Education 2-17


    Enterprise Resource Planning (ERP)

    Integrate an organization’s information into one overall AIS

    ERP modules:
    Financial
    Human resources and payroll
    Order to cash
    Purchase to pay
    Manufacturing
    Project management
    Customer relationship management
    System tools

    Copyright © 2012 Pearson Education 2-18


    ERP Advantages

    Integration of an organization’s data and financial information

    Data is captured once

    Greater management visibility, increased monitoring

    Better access controls

    Standardizes business operating procedures

    Improved customer service

    More efficient manufacturing

    Copyright © 2012 Pearson Education 2-19


    ERP Disadvantages

    Cost

    Time-consuming to implement

    Changes to an organization’s existing business processes can


    be disruptive

    Complex

    Resistance to change

    Copyright © 2012 Pearson Education 2-20

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