SUPPLEMENTAL B An Overview of The General Ledger Architecture

Overview of Basic Systems Terms and Concepts Files are used to store data and processing instruction. The two types of files computer users use most often are executable files and data files. Types of data file used in traditional system include mater file transaction file, history files, reference files, and suspense files. Master files contain balance data or the status of an entity at a point in time. Transaction files or activity files contain activity data. History files or archive files, as the name suggests, contain inactive past or historical data. Reference files contain referential data such as a listing of the chart of accounts, tax rate schedules or customer price lists. Suspense files are awaiting some action to complete their processing.

Storage and Access of Data in a System

Journal Voucher batch Key in journal voucher data Unsorted journal voucher Sort voucher in chart of account order Sorted journal voucher Old general ledger master New general ledger master Sorted journal vouchers Error and exception report Old general ledger master Edit input and update master file Step 1 : The data are entered into the computer system. Input: A batch of journal vouchers (journal entries). Process: Transfer of data from paper to tape Output : A tape of unsorted journal entry transaction data Step 2 : The transaction data are sorted to order the data in the same ordering scheme as the primary key of the master file (in chart of account order). This step is needed because of the sequential posting procedure. Step 3 : The transaction data are posted to the master file. Input: The sorted tape of journal vouchers data and the current general ledger master file Process: Update the balances in the current general ledger master file to reflect journal entry data, and perform edit routine to identify journal vouchers with errors or incomplete information Output : The sorted journal voucher the current (now “old”) general ledger master file, a new (current) general ledger master file, and an error and exception list displaying all the journal vouchers that could not be processed due to errors. If necessary the old master file and the transaction file can provide backup copies for the new master file

Journal voucher data Input data (could use Scanner) Edit data And update Master file General ledger backup General ledger master Transaction log Error and exception message N Step 1: Input journal voucher (journal entry) data and update the general ledger master file (chart of accounts balance) Input: journal entry data and the general ledger master file (paper journal voucher is not mandatory) Process : Edit check input data and, if possible, update the applicable chart of accounts balances in the General ledger master file Output : update general ledger master file and/or an online (immediate) error report Notice how no data preparation (sorting) is mandated in this example, due to the use of a direct access storage medium. Online processes should maintain a transaction log of all transaction inputs and a periodic backup to the master file. Such backup procedures protect system users form loss of data (Journal voucher file Numerical order) EXHIBIT B-2 Disk Online Processing Example

ERP Software Windows Other accounting Software Windows