Chapter 1 Introduction to Business Data Processing Overview of Business System Business includes all the human activities done

to earn the profit. The term business includes trade, commerce and industry. The term trade means the purchase and sale of goods and providing services. The term commerce means trade and the aids to trade. System is a set of different predefined activities working in coordination, brought together to accomplish a common goal. A computerised business system is a set of manual and/or computerised components for gathering, storing and processing business data and for converting such data into useful, decision oriented information. It usually consists of the following components: 123456Management What is Management? (Manage+men+t) To manage men tactfully Management is an art of getting the things done through others. or Management is an art of getting things done through and with people in formal organised groups. or To manage is to forecast and plans, to organise, to command, to co-ordinate, and to control. Levels of Management Top Level Management It consist of Board of Directors, MD, GM, and Secretary, etc. Main functions of Top management are to decide the objects and targets of the business enterprise, to take the important decisions and to decide the policies and to see whether the policies are being implemented effectively or not. Middle Level Management It includes the CEO (Chief Executive Officer) such as Production Manager, Marketing Manager, Finance Manager, R&D Manager, Junior Manager, Superintendent, Departmental Officer, Accounts and Sales Officer, etc. To help top management in the discharge of their duties, to establish the organisation, to appoint the subordinate officers, to execute the policies and programs and to control the affairs of the organisation, training motivation, etc. Lower Level Management It is a link between management and labourers. It includes all the Officers performing the duties of supervision and inspection. The main functions are to make plan for every individual labourer, toassign the work to labourer, arrange the necessary raw material and equipment, and to provide best working facilities to the labourers. Computer hardware Computer software Data Procedure Personnel End user

Information Requirement (for Planning, Coordination, and control) i) Scope It covers products, customers, markets, price/quality relationship of products and product characteristics. ii) Competitive Edge It comprises special market position or supply position, unique product advantages, special financial strength or credit lines, unique management or technical talents. iii) Specification of targets It consists of quantitative statements of acceptable and desired goals such as size of the company, market share, profitability return on investment, assets. iv) Allocation of resources It comprises allocation of long term capital, investment and disinvestment, emphasis on particular activities such as marketing, engineering, production, management development, etc. Long Term Planning i) Analysing the environment for business To identify the new opportunities for existing and new products as well as services. ii) Strengths and Weaknesses Based on the primary analysis, check the feasibility of the product range and the impact of services and survival. iii) Opportunities and Risks Identifying opportunities of providing products/services in the environment to fulfill a criterion and the risk factors involved in doing so. iv) Defining Product/ Market scope (MKT Segment) Elaborating the product, its qualities, to which segment of the society it focuses on and how long its requirement would be felt. Short Term Planning Various Short Term Schemes to meet out the sales targets like on the occasion of Festivals, to sell the old stock, or quarterly/ Half-yearly basis. PROFILE OF DATA IN BUSINESS SYSTEMS (Some of the work is repetitive type like invitation cards) a) Large volume of Data and Data Handling Implicit Automation of repetitive tasks using computers and mechanical tools like CNC (Computerised Numerically Controlled). b) Identification of Relevant Data Data to be input. Data types i) ii) divided into: Variable Data (Changes with each transaction) Identification data (Having match less value or KEY value like serial no.) It is further Constant Data (Which will not change, like date of the particular day) Details that the system can retrieve (Required for searching particular information Details that the system can calculate (Mathematical calculation like cost of goods and sold quantity, system will retrieve unit price producing sold cost of each item)

1) 2) from memory) 3) sold by inputting item No.

Classification of Data Elements by Function 1- Master Data Record It is a set of data for an individual subject such as customer, employee, vendor. It contains descriptive data such as name and address, etc. 2- Transaction Data Record It is used to update the data in master records in a master file. 3- Control Data Record

It is a check point record containing data used to initiate, modify or stop a control operation or determine the manner in which data are processed. Data Security Protection of data against unauthorised access through password or identification numbers. Data Checking An operation used to verify data quality or integrity. Classification of Data by Source 1- Raw Data The fact that has not been processed or manipulated. E.g., 40 is a raw fact. 2- Derived Data Data values that are derived from the values from other data by a specified algorithm. Primary and Secondary Record keys Primary The record key that is unique to each record is called the primary record key. Secondary These enable the multiple users to access information from the same file or enable the same user to access a computer file in more than one way. Basic Tasks in Business Data Processing 1- Input Data is prepared in some convenient form and on a medium most suitable for entry into a processing machine. 2- Processing Manipulation of input data as per the instructions. It may involve the following: a) Data origination Original data are collected and recorded. b) Data Capture Collecting data from different unusual sources like magazines, diagrams, etc. c) Sorting Reordering of data in a new sequence. d) Merging Combining two or more items in an ordered manner and without changing their basic structure. e) Calculating and Summarizing To use the input, involve some basic mathematical operations on that according to the requirement and giving a final report is calculating and summarizing. f) Transmission of Data or Distribution Reports are further distributed among the users for managing day to day activities in different departments. g) Storage and Retrieval Securing the processed data for future use on the medium provided. Retrieval is the process of gathering that information again in future. 3- Output Producing human understandable form of the processing. Examples of Business Data Processing and Applications a) Inventory in Stores b) Controlling manufacturing activities in Production Department. c) Processing of invoices and accounting in Purchase Department. d) For credit controls and recovery of sale proceeds in Sales Department. e) For recruitment in Personnel Department.

Chapter 2 Design, Analysis and Development of Computerised Financial Accounting The financial statements primarily the earning statement or profit and loss statement. The financial accounting system (FAS) is the heart of overall distribution system. FAS maintains the vouchers, books of accounts and ledgers and assures the integrity of the companys business transactions. Every other application like payroll or inventory provides an interface to financial accounting. Why computerized FAS? It gives the professional accountant the tools to review the financial records of a client while reducing the time spent by the accountant in collecting basic documents and allows time for more sophisticated analysis. It is the one basis for strong management. The proper design of the accounting system is essential and planning is important. Computer helps in executing all the above characteristics fastly. Entries to financial accounting system: The following accounting sections interface directly with the FAS: Accounts Receivable System(ACRES) It passes entries, recording of sales, cash receipts and other adjustments. Inventory Management System (INMAS) It passes general entries for the cost of goods sold and other adjustments to the inventory accounts. Accounts Payable System (ACPAYS) It creates general entries to record invoices and credits for goods and services acquired and credit to cash account for cash disbursement when invoices are paid. Payroll Recording System (PAYS) Entries for the payroll. Master files and Transaction files:Its structure is shown in the following paragraphs: 1- General Ledger Master It contains fields like a) General Ledger Code or Account Code b) Narration c) Yearly balance Details Year Debit/ Credit Flag Balance Amount d) Monthly Balance Details Month Debit/ Credit Flag Balance Amount Last Date of Transaction 2- Subsidiary Ledger Master It contains fields like a) Subsidiary Ledger Code b) Narration c) Yearly balance Details Year Debit/ Credit Flag Balance Amount d) Monthly Balance Details Month Debit/ Credit Flag Balance Amount Last Date of Transaction 3- Voucher (Transaction) File - It contains fields like a) Voucher Type b) Voucher Number c) Voucher Date

d) e) f) g) h) i) j) k) l) m) n) o)

General Ledger Code Subsidiary Ledger Code Narration Debit/ Credit Flag Amount Reference Document Type Reference Document Number Reference Document Date Due Date Bank Code (For Bank Vouchers only) Cheque Number Cost Centre Code File Cost Centre Code Cost Centre Description

Chapter 2 Design, Analysis and Development of Computerised Inventory Control What is an inventory? A record of available goods in the store. Aims of Inventory Control: Primarily there are two aims involved a) How much stock should one order? b) When does one order for more stock? Kinds of Inventory: a) Raw material (Basis of manufacturing) b) Goods in process (Goods undergoing production) c) Finished goods (End products) Factors influencing Inventory: a) Demand - The quantity of finished goods that can be sold during a fixed period of time. b) Lead Time The actual time taken to fulfill the order.