1. Overview of Transaction Processing and ERP Systems
Chapter 2
Overview of Transaction Processing and ERP Systems
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2. 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.
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3. Data Processing Cycle Input Process Output Storage
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4. The Data Processing Cycle Determines
What data is stored?
Who has access to the data?
How is the data organized?
How can unanticipated information needs be met?
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5. Data Input—Capture
As a business activity occurs data is collected about:
Each activity of interest
The resources affected
The people who are participating
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6. 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
Org.
Cust.
Turnaround Document
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7. Source Data Automaton Source data is captured In machine-readable form
At the time of the business activity
E.g., ATM’s; POS
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8. 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
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9. Data Storage Types of AIS storage: Paper-based Ledgers Journals
Computer-based
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10. A/P $600 Ledgers A/R $1000 Joe Smith $250 Patti Jones $750
ACME Inc.$150
Jones, Inc $350
A/P
$600
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
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11. Journals General Specialized Infrequent or specialized transactions
Repetitive transactions
E.g., sales transactions
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12. Coding Techniques Digit Position Meaning 1–2
Sequence
Items numbered consecutively
Block
Specific range of numbers are associated with a category
10000– = Electric Range
Group
Positioning of digits in code provide meaning
Mnemonic
Letters and numbers
Easy to memorize
Code derived from description of item
Chart of accounts
Type of block coding
Digit Position
Meaning
1–2
Product Line, size, and so on 3
Color
4–5
Year of Manufacture
6–7
Optional Features
12 = Dishwasher
4 = White
10 = 2010
00 = No Options
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13. 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
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14. File Types Updated Master File 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
Transaction File
Master before Update
Updated Master File
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15. Data Processing Four Main Activities Create new records
Read existing records
Update existing records
Delete records or data from records
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16. Data Output Types Soft copy Hard copy Displayed on a screen
Printed on paper
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17. ERP Systems
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18. 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
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19. 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
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20. ERP Disadvantages Cost Time-consuming to implement
Changes to an organization’s existing business processes can be disruptive
Complex
Resistance to change
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