1 chapter 1 introduction to accounting information systems chapter 4 database management systems
TRANSCRIPT
1
Chapter 1
Introduction to Accounting Information
Systems
Chapter 4
Database
Management
Systems
Learning Objectives
• Understand major approaches used to process data re accounting/business events
• Identify major accounting cycles
• Recognize complexities/limitations of traditional data management approaches
• Appreciate advantages of database approach to data management
• Understand basic processes of database design and implementation
3
Business Event Cycles (Merchandising)
• Revenue
– Capture & record customer orders
– Ship goods - record CGS
– Send invoice - record Sales & A/R
– Collect and record cash receipts
4
Business Event Cycles (Merchandising) (2)
• Expenditures
– Prepare and record purchase orders
– Receive goods and record cost of inventory
– Receive vendor invoices; record Accts Payable
– Prepare paychecks & record payroll activities
– Prepare/record cash disbursements
5
Order EntryProcess
Billing/AR/ReceiptsProcess
Inventory
GeneralLedger
REVENUECYCLE
EXPENDITURECYCLE
Business Even Cycles (merchandising)
Purchasing/AP/Disbursement
Process
6
B/AR/CRProcess
Generalledger
P/AP/CDProcess
Service FirmRevenue Cycle
7
IntegratedProduction
Process
Generalledger
P/AP/CDProcess
ProductionCycle
8
Event-Driven Approach
• Raw data captured as events occur
• Minimum data to be collected/stored
– Who, What, When, Where
• Data can be aggregated to meet user requirements
9
Customernumber
Customername
Customeraddress
Creditlimit
Sales-person
Salesterritory
Year-to-datesales
RECORD
Fields Characters
10
Start
New customerform
Review &approve
Enter customerdata
Inputaccepted
New customerform
Completedforms
Credit Department Computer
Createcustomer
record
Customermaster
data
Add customerrecord
11
Start
New customerform
Review &approve
Enter customerdata
Inputaccepted
New customerform
Completedforms
Credit Department Computer
Edit order,record order,
updateinventory, print
shippingdocuments
Inventorymaster
data
Customermaster
data
Sales ordermaster
data
Warehouse
Packing slip
Pickingticket
Shipping
Enter customer order
12
Data coding
• Sequential (serial)– Student ID
numbers
– “Wait” ticket at Post Office
• Example based on employee ID codes:– 001 - 1st hired
– 002 - 2nd hired
– etc
• Block– Universal product code
– 73805 80248
Mfg.code
ProductI.D.
Example based on employee ID codes:
- 001-100 - fab dept.- 101-200 - assembly dept
13
Data coding (2)Significant digit
16 2 17 4389
Productgroup
Part orsubassembly
Warehouse Unique itemidentifier
Example based on employee ID codes
Inventory item
2 0 4 623
Workcenter
Exempt or nonexempt
Pay ratecode
Uniqueemployeeidentifier
14
Data coding (3)
Hierarchical Postal zip code
0 18 90Section ofcountry
Region within section
Locality (townwithin region)
Example based on employee ID codes
01 3 9 623Companydivision
Plant Department Uniqueemployer ID
15
Data coding (4)
Mnemonic College course numbering:
AC340 - Accounting Information Systems
EN101 - English Composition
Example Based on Employee ID Codes:
F M C 623
Female Married Caucasian Uniqueemployee ID
16
Application approach to data management
Enter InventoryTransaction
InventoryApplicationPrograms
InventoryOutput
Salesorder
master data
Inventorymaster data
17
Record layouts - applications approach
Sales order #
Customer#
Item # PriceSales
PersonQuantityOrdererd
sales order record layout
Item # Unit costWarehouselocation#
Quantityordered
Salesorder #
Customer#
inventory record layout
Customer#
Customername
Creditlimit
SalesPerson
Quantityordered
Salesorder #
customer record layout = key field
18
Database approach
• Decouples data from applications
• Data are independent
• Database shared by applications
• Data can be easily accessed by
– Report generators
– Query programs
• Must use DBMS + Operating system
19
Data base approach to data management
Enter salestransaction
Enter inventorytransaction
Salesapplicationprograms
Inventoryapplications
programs
Data basemanagement
systemsoftware
Operatingsystem
Reportwriter
program
QueryProgram
Reportrequest
Query
Onlinequery
response
Report
Database
20
DBMS
• Set of integrated programs designed to simplify tasks of creating, accessing, managing databases
• Functions– defining data– defining relations among data– interfacing with operating system– mapping each user’s view of data – (subschema schema)
21
Schema/Subschema
Customer#
Customername
Creditlimit
SalesPerson
Customeraddress
YTDSALES
SCHEMA
Customer#
Customername
SalesPerson
YTDSALES
SALES MANAGER SUBSCHEMA
Customer#
Customername
Creditlimit
CREDIT MANAGER SUBSCHEMA
22
Advantages of Database Approach
• Nonredundant data
• Ease of maintenance
• Reduced storage costs
• Data integrity
• Shareability/flexibility
• Privacy
23
Disadvantages of Database Approach
• High hardware/software cost
• Need for database administrator
• High concentration of applications on database
• Contention problems
• Training
24
ORDER
CUSTOMER SALE
INVENTORY
madeto
receivedfrom
lineitem
lineitem
fills
Entity-relationship diagram
25
Specify Logical DB Design
• Select Logical DB model
• Transform Data Model using a Logical DB model
• Select DBMS
• Implement DBMS
Learning Objectives
• Understand major approaches used to process data re accounting/business events
• Identify major accounting cycles
• Recognize complexities/limitations of traditional data management approaches
• Appreciate advantages of database approach to data management
• Understand basic processes of database design and implementation