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