TRANSACTION PROCESSING:

THE DATA PROCESSING CYCLE

Data Storage

CHART OF ACCOUNTS
 is a list of general ledger accounts an organization uses.
 the structure of the chart of accounts is an important aspect of an
AIS because it affects the preparation of financial statements and
reports.
 it is important to realize that the chart of accounts will differ,
depending on the nature and purpose of the organization it
represents.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Storage
JOURNAL
 General Journal: is used to record infrequent or nonroutine
transactions, such as loan payments and end-of-period adjusting
and closing entries.
 Specialized Journal: is used to simplify the process of recording
large numbers of repetitive transactions such as credit sales, cash
receipts, purchases on account and cash disbursement.
AUDIT TRAIL
 An audit trail provides a means to check the accuracy and validity of
ledger postings.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Storage
COMPUTER-BASED STORAGE CONCEPTS
 Entity: is something about which information is stored.
 Each entity has attributes or characteristics of interest that need to
be stored.
 Data values are stored in a physical space called a field.
 The set of fields that contain data about various attributes of the
same entity forms a record.
 Related records are grouped to form a file.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Storage
COMPUTER-BASED STORAGE CONCEPTS
Two Basic Types of Files.
 Master File is conceptually similar to a ledger in a manual AIS.
Master files store cumulative information about an organization’s
resources and the agents with whom it interacts.
 Transaction file which is conceptually similar to a journal in a
manual AIS. Transaction files contain record for the individual
business transactions that occur during a specific fiscal period.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Storage
COMPUTER-BASED STORAGE CONCEPTS
 Entity: is something about which information is stored.
 Each entity has attributes or characteristics of interest that need to
be stored.
 Data values are stored in a physical space called a field.
 The set of fields that contain data about various attributes of the
same entity forms a record.
 Related records are grouped to form a file.
 A set of interrelated, centrally coordinated files is referred to as a
database.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Processing
This processing helps keep the data stored in files or databases
current. There are four different types of data processing.
 Creating or adding new data records, such as adding a new
employee to the payroll master file or database after they have
been hired.
 Reading, retrieving or viewing existing data.
 Updating data previously stored about the activity, the resources
affected by the activity, or the people who performed the activity.
 Deleting data, such as purging the vendor master file of all
vendors that the company no longer does business with.
 TRANSACTION PROCESSING:
THE DATA PROCESSING CYCLE
Data Processing
This processing helps keep the data stored in files or databases
current. There are four different types of data processing.

Updating can be periodically, such as daily, or immediately as each

transaction occurs.

Periodic updating of data is referred to as batch processing. Updating

as each transaction occurs is referred to as online, real-time
processing.