OLTE batch level process- can include RFID readers, barcode scanners, ect Online input device connected

to a computer OLRT updates master data files instantly Periodic batch processing Real time immediate Information processing activities retrieving data from storage, transforming data, or filing data Need to know cause internal entity performed information procuring activities DFD Data stores, process, Boxes = external entity Important things to remember about flow charting! Master file, magnetic disk, transaction file, computer disk Dont forget all of the internal entity columns External entity activity such as sending in an invoice not to be documented only document our activities Dont forget to show document flow throughs from one entity to another CRT screen should not be under computer column because the clerk is the one looking at the screen Manual process is not needed to show the sending of a document and for filing a document let doc flow from one thing to another Chapter 16 and 4 words! Validate business updates: 1 ensure they come from correct feeder process 2 ensure no business updates have been overlooked and are recorded in correct period 3 verify debits and credits of entries flowing from systems Controller vs treasure Controller oversees accounting and financial reporting, things like overseeing the presentation of financial statements, supervising A/R function, etc. Controller is more internal in focus recording accounting events

Treasurer Responsible for security and management of a firms capital, includes making sure funds are available for acquiring revenue generating assets, paying down debt, buying back stock, etc. More external in focus stockholders and whatnot

XBRL Being incorporated into new versions of ERP software Is being developed by an international consortium of approx. 450 major companies, organizations and government agencies Open standard Now required for all publically traded co. World wide acceptance Improves comparability across all firms General journal used to record, adj entries, closing, reversing entries, finance issue common stock Periodic inventory is counted at the end of the period Perpetual whenever it is out Building blocks Source docs invoice from supplier Input device journal entry Information processor posting to ledger Output device financial report Special journals 90-95% total transactions sales, purchases, cash receipts, cash disbursements Control account summarize details from sub ledgers to general ledger Logical Payment, Bubble = action, should exist, payment, receive payment Physical

Cash, bubble = internal entity, revised more frequently, currently exist, cash credit card, sales clerk