Topic 1.2 Overview of Transaction Processing and Enterprise Resource Planning Systems Flashcards
What is the data processing cycle
Data input - data processing - information output
And data store
Steps in data input are
- Capture transaction data triggered by a business activity (event)
- make sure data capture is accurate and complete
- ensure company policies are followed (e.g approval of transaction)
What is data capture
Information collected for an activity includes:
- Activity of interest
- Resources affected
- People who participate in the activity
Information comes from source documents
What are source documents
Paper source documents (invoice) Electronic documents (email invoice) Turnaround documents (cheques)
Where is data stored
Chart of accounts
Transaction journals
Subsidiary ledger
General ledger
What are sequence codes
Items numbered consecutively to account for all items
What are block codes
Blocks of codes reserved for specific categories. E.g product starting with 2 is a fridge
What are group codes
Two or more subgroups of digits to code items e.g 420 repairs 100 workshop
420100 repairs workshop
What are Mnemonic codes
Letters and numbers inter spread to identify an item
Describe the elements of computer based storage
Entity - person , place or a thing
Attribute - facts about the entity, e.g name
Fields - where attributes are stored
Records - group of related attributes about an entity
File - group of related records
Data value - value of a field
What are the four steps of data processing
CRUD C- creating new records e.g adding customer R - reading existing data U -updating pervious record or data D -deleting data
Data processing can be batch processed at the end of each day or real time processed. As the transaction happens
What is an ERP system
Inter grates activities from the entire organisation
- revenue cycle
- expenditure cycle
- production cycle
- payroll cycle
- general ledger and reporting system
Advantages of ERP System
- Integrated enterprise wide single view of the organisation’s data which streamlines the flow of information
- data captured once (I.e no longer need sales to enter data about a customer and then accounting to enter same customer name for invoicing)
- greater visibility and monitoring capabilities for management
- improve access to control of the data through security settings
- standardisation of procedures and reports
- improves customer service
- increase productivity through automation
Disadvantages of ERP system
- costly
- significant amount of time to implement
- customising or standardising a business process
- complexity
- user resistance ( learning new things can sometimes be hard for people)
Many small businesses choose to outsource their payroll activities to firms that specialize in providing payroll services. Dolores Yu operates a payroll processing business in Calabasas, California. When she sends bills out to her clients, her work is part of her firm’s
Revenue cycle
The data processing method used by FedEx to track packages is an example of
Real time processing
What is the final step in the data processing cycle?
Output
An ERP system might facilitate the purchase of direct materials by all of the following except
selecting the best supplier by comparing bids.
What is an example of an ERP
Microsoft
Sap
Oracle
What is the second step in the data processing cycle?
Processing
What does the general ledger do
Summaries the transactions in the journals
John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts payable based on purchase orders and checks. His responsibilities are part of the company’s
Expenditure cycle
Catarina Boards is a skateboard retailer located in Pueblo, New Mexico. Catarina Boards is a sole proprietorship that stocks an inventory of between 30 and 50 different skateboards. Inventory is updated in real time by the AIS. If Catarina wishes to keep detailed information about the purchase price of each skateboard in a place outside of the general ledger, it might use a
Transaction file
The collection of customer payment is part of which transaction cycle?
Revenue cycle
One way ERP vendors help to make the configuration process easier for their customers is to
develop built-in configuration tools to address most of their customers’ needs for system changes.
In an ERP system, the module used to record data about transactions in the disbursement cycle is called
Purchase to pay
The quality assurance department at a large manufacturing business enters data into the AIS that is used to produce a weekly report that summarizes the proportion of defective units in each product line. This is an example of
Internal non financial information
The Cape Fear Rocket Club heads out to the dunes of Cape Fear, Oregon every August to pierce the sky with their fiery projectiles. An enterprising seller of t-shirts has devised a series of designs that capture the spirit of the event in silk-screened splendor. His employees can be found on many of the major intersections selling his products out of the backs of pickup trucks. What is the best way for this business to ensure that sales data entry is efficient and accurate?
Sequently numbered forms
The efficiency of recording numerous business transactions can be best improved by the use of
Specialised journals
What does a specialized journal do
simplifies the process of recording large numbers of repetitive transactions.
In an ERP system, the module used to record marketing data is called
Customer relationship management
In an ERP system, the module used to record data about transactions in the revenue cycle is called
Order to cash
Documents that are sent to customers or suppliers and then sent back to the company in the course of a business transaction are known as
Turnaround documents
