1. Computerized AIS October 20
Unit 21
Computerized AIS
October 20

2. Major Transaction Cycles
Purchasing Cycle
Acquisitions Cycle
Disbursements Cycle
Payables Cycle
Procurement Cycle
etc.
Revenue Cycle
Sales Cycle
Cash Receipts Cycle
Receivables Cycle
Payroll Cycle
Human Resources Cycle
Labor Cycle
DOCUMENTS
JOB TITLES
PROCESSES

3. Minor Transaction Cycles
Research and Development (R&D) Cycle
Financing Cycle
Sometimes called the Capital Acquisition and Repayment Cycle
Fixed Assets Cycle
Sometimes called the Capital Asset Acquisition Cycle
Occasionally called the Investing Cycle
Manufacturing Cycle
Sometimes called the Conversion Cycle or Production Cycle

4. The ACCOUNTING CYCLE is NOT a Transaction Cycle!

7. Formatting/Presentation
Business Activity
Data Capture
Data Transmission
Data Organization
Documents
Storage
Selection
Query
User
Information
Formatting/Presentation

11. Most Computerized AIS’s
Are documents-centric
Use computer-based documents
Use the same documents as a manual system
Assume the same information flows “ “ “ “
Parallel the classic transaction cycles

18. USER NEEDS ANALYSIS Discover exactly WHAT features are needed:
Processes and Activities to accommodate
Documents necessary
Data elements on those documents
Reporting required
Analyses desired
Ease of Use?
Ease of Training/Learning Curve?

21. Digital Hierarchy Bit: a single binary storage location
Byte: a set of 8 bits

22. American Standard Code for Information Interchange

23. Digital Hierarchy Bit: a single binary storage location
Byte: a set of 8 bits
Character: A symbol from a human language, represented by a specified combination of bits (usually a specific byte)
Data Element: The definition assigned to a unit of data that refers to some elemental real-world meaning
Field: a storage location designated to hold the various values of a given data element
Record: A collection of diverse fields which taken collectively produce information about a single object, entity, activity, or occurrence
File: A collection of records holding identical fields, containing information about a collection of objects, entities, activities, or occurrences.

24. File

25. RECORD

26. FIELD

27. DATA ELEMENT

28. VALUE

30. Digital Hierarchy Bit: a single binary storage location
Byte: a set of 8 bits
Character: A symbol from a human language, represented by a specified combination of bits (usually a specific byte)
Data Element: The definition assigned to a unit of data that refers to some elemental real-world meaning
Field: a storage location designated to hold the various values of a given data element
Record: A collection of diverse fields which taken collectively produce information about an object, entity, activity, or occurrence
File: A collection of records holding identical fields, containing information about a collection of objects, entities, activities, or occurrences.
Database: A collection of files related to each other

31. Types of Files Master Files Transaction Files
Header file
Line-Item file
Control Files (configuration or setup files)
Journal Files
System Log Files

32. MASTER FILES Contain information about an entity or object
Employee Master File
Product Master File
Customer Master File
Vendor Master File
Department Master File
Sales Region Master File
Zip Code Master file
Primary key is used as a lookup to retrieve information about the entity or object for use in processing transactions

33. MASTER File

34. TRANSACTION FILES
Each record contains information relating to a single transaction.
Usually, every single kind of document within the transaction cycle has its own transaction file(s).

38. TRANSACTION FILES
Each record contains information relating to a single transaction.
Usually, every single kind of document within the transaction cycle has its own transaction file(s).

39. TRANSACTION FILES Purchase Requisition File Purchase Order File
Merchandise Receipts File
Accounts Payable File
Open Orders File
Shipped Orders File
Billing Invoice File
Accounts Receivable File

41. TRANSACTION FILES Header File Line-Item File
Primary Key is usually a computer-assigned master transaction “number”, but each document may have its own unique pre-printed identification number too.

43. TRANSACTION FILES Header File Line-Item File
Primary Key is usually a computer-assigned master transaction “number”, but each document may have its own unique pre-printed identification number too.

44. CONTROL FILES Also called “Configuration Files”
These files control how the software is setup and operates
Typically these are set once and forgotten.

45. CONTROL FILES FIFO/LIFO/Average Cost/Specific Cost
Default values for FOB, Freight Terms, Credit Terms, etc.
User IDs and passwords
Permissions (for file access)
Printers and printer default settings
Other Defaults
Payroll tax rates, sales tax rates, etc.

46. JOURNAL FILES Specialty Journals, and…
What most people call “Listings” or Logs
Order Logs
Cash Receipts Journal
Cash Disbursements Journal (check register)
Client sign-in logs
Shipping logs
Receiving logs
Truck entrance logs

47. JOURNAL FILES
Often are created by the system as “listings” or reports as a by-product of other activity entry. Examples:
Check Register
Order Log
Shipping Log
Sometimes are merely “lists” created & entered or captured as its own activity. Examples:
Truck entry logs at the security gate
Client sign-in logs at the security desk

48. SYSTEM LOGS
Typically captured by the computer system transparent to the user.
Examples
User Sign-In, Sign-Out, Computer Activity
Logs of addition of new customers, deletions, etc.
Changes of entries to master files, setup files, etc.

49. Types of Files Master Files Transaction Files
Header file
Line-Item file
Control Files (configuration or setup files)
Journal Files
System Log Files

50. Screens, Reports, Documents

52. Digital Hierarchy Bit: a single binary storage location
Byte: a set of 8 bits
Character: A symbol from a human language, represented by a specified combination of bits (usually a specific byte)
Data Element: The definition assigned to a unit of data that refers to some elemental real-world meaning
Field: a storage location designated to hold the various values of a given data element
Record: A collection of diverse fields which taken collectively produce information about an object, entity, activity, or occurrence
File: A collection of records holding identical fields, containing information about a collection of objects, entities, activities, or occurrences.
Database: A collection of files related to each other

53. USER NEEDS ANALYSIS Discover exactly WHAT features are needed:
Processes and Activities to accommodate
Documents necessary
Data elements on those documents
Reporting required
Analyses desired
Ease of Use?
Ease of Training/Learning Curve?

54. Most Computerized AIS’s
Are documents-centric
Use computer-based documents
Use the same documents as a manual system
Assume the same information flows “ “ “ “
Parallel the classic transaction cycles

56. E-E Distributors

57. E-E Distributors

58. E-E Distributors

67. Financials (with footnotes) and other reports
Supporting documentation
Consultant’s Report

68. Financials (with footnotes) and other reports Supporting documentation
Consultant’s Report
Each group gets one free visit with the professor & business owner.
Reserve your visit time on signup sheet posted on professor’s door.
Questions after the visit are 3 points each.

69. Cut-offs and Deadlines
All visits before 5 pm Thursday November 16
Final Questions by Noon Thursday November 30
Submission by start of class time on Friday, December 8.

70. Homework
Homework Assignment 21
Case is available online as Unit 21A

71. Questions?