Chapter 2 Overview of Transaction Processing and ERP Systems Copyright © 2012 Pearson Education...
-
Upload
hannah-jenkins -
Category
Documents
-
view
219 -
download
0
description
Transcript of Chapter 2 Overview of Transaction Processing and ERP Systems Copyright © 2012 Pearson Education...
Chapter 2Overview of Transaction Processing and ERP Systems
Copyright © 2012 Pearson Education2-1
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
What data is stored? Who has access to the data? How is the data organized? How can unanticipated information needs be met?
Copyright © 2012 Pearson Education 2-4
Data Input—Capture As a business activity occurs data is collected about:
1. Each activity of interest2. The resources affected3. 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
Copyright © 2012 Pearson Education 2-6
Turnaround Document
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 Items numbered consecutively
Block Specific range of numbers are
associated with a category 10000–199999 = 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
Copyright © 2012 Pearson Education 2-12
Digit Position Meaning1–2 Product Line,
size, and so on3 Color4–5 Year of
Manufacture6–7 Optional
Features1241000 12 = Dishwasher
4 = White10 = 201000 = No Options
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
Copyright 2012 Pearson Education, Inc. publishing as Prentice Hall 14
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 records2. Read existing records3. Update existing records4. Delete records or data from records
Copyright © 2012 Pearson Education 2-16
Data Output Types Soft copy
Displayed on a screen
Hard copy Printed on paper
Copyright © 2012 Pearson Education 2-17
ERP Systems
Copyright © 2012 Pearson Education 2-18
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
Copyright © 2012 Pearson Education 2-19
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
Copyright © 2012 Pearson Education 2-20
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 2-21