Chapter 2 ( Transaction Processing )

Enterprise Resource Planning (ERP) Systems

The Data Processing Cycle

DATA STORAGE

DATA PROCESSING

DATA INPUT

INFORMATION OUTPUT

3 facets of each business activity

The resource(s) affected by each activity

The people who participate in each activity

Each activity of interest

source document

Turnaround documents

Source data automation

Records of company data sent to an external party and then returned to the system as input

Documents used to capture transaction data at its source when the transaction takes place

purchase orders

employee
time cards

sales orders

utility bill

The collection of transaction data in machine-readable form at the time and place of origin

point-of-sale terminals

ATMs

CHART OF ACCOUNTS

JOURNALS

AUDIT TRAIL

COMPUTER-BASED STORAGE CONCEPTS

CODING TECHNIQUES

LEDGERS

general ledger

subsidiary ledger

control account

block code

group codes

sequence codes

mnemonic codes

general
journal

specialized journal

It is used to check the accuracy and validity of ledger postings and to trace changes in general ledger accounts from their beginning balance to their ending balance

field

files

entity

attributes

record

data value

master file

database

transaction file

Reports

query

Documents

batch processing

online, real-time
processing

CRUD

Reading

Updating

Creating

Deleting

A record of a transaction or other company data

System output, organized in a meaningful fashion, that is used by employees to control operational activities, by managers to make decisions and design strategies, and by investors and creditors to understand a company’s business activities

A request for the database to provide the information needed to deal with a problem or answer a question

invoices

receiving reports

checks

purchase requisitions

Advantages

Disadvantages

A system that integrates all aspects of an organization’s activities

The organization gains better access control. An ERP can consolidate multiple permissions and security models into a single data access structure.

Customer service improves because employees can quickly access orders, available inventory, shipping information, and past customer transaction details.

Data input is captured or keyed once, rather than multiple times, as it is entered into different systems. Downloading data from one system to another is no longer needed

Manufacturing plants receive new orders in real time, and the automation of manufacturing processes leads to increased productivity.

Amount of time required

Changes to business processes

Cost

Complexity

Resistance

marketing

human resources

finance

manufacturing

accounting

inventory management