Computer-Based Accounting

Systems
 Computer-Based Accounting Systems

AUTOMATION REENGINEERING
Involves using technology to Involves radically rethinking
improve the efficiency and the business process and the
effectiveness of a task work flow.
AUTOMATING SALES ORDER PROCESSING
WITH BATCH TECHNOLOGY
KEYSTROKE
• Begins with the arrival of batches of shipping notices from the
shipping department.

• These documents are verified copies of the sales orders that contain
information about the customer and the items shipped.

• The keystroke clerk converts the hard copy shipping notices to digital
form to produce a transaction file of sales orders.
EDIT RUN
• Periodically, the sales order system is executed. Depending on
transaction volume and the need for current information, this could
be a single end-of-day task or performed several times per day.

• The system is composed of a series of program runs. The edit

program first validates all transaction records in the batch by
performing clerical and logical tests on the data.

• Typical tests include field checks, limit tests, range tests, and price-
times-quantity extensions.
UPDATE PROCEDURES
REENGINEERING SALES ORDER PROCESSING
WITH REAL-TIME TECHNOLOGY

Interactive computer terminals replace many of the

manual procedures and physical documents of the
previous system. This interactive system provides real-
time input and output with batch updating of only
some master files.
 Performs a credit
check by retrieving the If credit The system accesses
is approved, the system the
customer credit data in updates inventory subsidiary
the customer’s currentfile
balance and
to checks the sale
reflect the availability
and
the customer’s (AR)
reduces inventoryof thebyinventory.
the quantities
file.
of items sold to present an accurate
Transmits
and current picturea digital stock Transmits
of inventory on a digital shipping
release
hand document
andAavailable
shippingfor tosale.
clerk the notice to the shipping
reconciles
goods,The
warehouse
the the warehouse
stock release clerk’s
department.
The Sales
batchclerks
update programorders
receiving document, and terminal immediately
the hard-copy
The
searches
frominventory
the opensubsidiary
customers sales orderand
process each packing produces
slip produced Thethe
a hard-copy
on clerkprint-
then picks the
AR
file for subsidiary
records
transaction records
marked were
closed
separately as it is Finally,
out of thethe
terminal. batch
goods program
and sends
electronically prepares
them, along
andupdated
updatespreviously
received. during
Invty-Control, with release
and mails customer
transmitted stock a copy
billsof the stock
and
The clerk then selects a
theAR-Control,
Sales, and COS. Records the sale in the open
real-time procedures. transfers the closed sales
release
document records to
document, to the
sales order file carrier and prepares
the closed sales orderthe file (sales
sipping dept.
goods for shipment.
From the terminal, journal).the clerk
transmits a shipping notice
containing shipping date and
freight charges.
ADVANTAGES OF REAL-TIME PROCESSING
• It greatly shortens the cash cycle of the firm.
• It can give the firm a competitive advantage in the
marketplace.
• It permits the identification of many kinds of errors as they
occur and greatly improves the efficiency and effectiveness
of operations.
• It reduces the amount of paper documents in a system.
 The AR clerk receives and
reconciles the remittance
advices and remittance
list.
Via terminal, the clerkAt the end of the day,
Via terminal, the clerk
The mail room clerk creates the cash receiptsthe batch program
creates a journal voucher reconciles the journal
separates the checks transaction file based on
record of total cash
and remittance
The cash receipts clerk the individual remittance voucher with the
received.
reconciles the checks and transaction file of
advices and prepares advices.
the remittance list and cash receipts and
a remittance list
prepares the deposit updates the AR
Checks and a copy of the subsidiary and the GL
slips.
remittance list are sent to accounts (AR-Control
to the cash receipts and Cash)
The remittance advices The clerk then files the
and a copy of the remittance
remittance list are sent to Finally,advices and produces
the system
The clerk the aremittance
transactionlist.
listing that the
thefiles
ARAtdepartment.
the
the end of the day, the
remittance list and
clerkone
deposits the cash in AR clerk will reconcile
copy of the deposit slip.the bank. against the remittance list.