Introduction to Transaction

Processing
Chapter 2
 Transaction Cycles
• Expenditure cycle
• Conversion cycle
• Revenue cycle
 Expenditure Cycle
• Purchases/Accounts Payable (AP) system
• Cash disbursements system
• Payroll system
• Fixed asset system
 Conversion Cycle
• Production system
• Cost accounting system
 Revenue Cycle
• Sales order processing
• Cash receipts
 Accounting Records
• Manual Systems
– Documents
• Source Documents
• Product Documents
• Turnaround Documents
– Journals
• Special Journals
• Register
• General Journals
 Accounting Records
• Manual Systems
– Ledgers
• General Ledgers
• Subsidiary Ledgers
• Digital Accounting Records
– Master File
– Transaction File
– Reference File
– Archive File
 File Structures
• Flat-File Model
– Data Storage
– Data Updating
– Currency of Information
– Task-Data Dependency
– Flat Files Limit Data Integration
• Database Model
 Documentation Techniques
• Data Flow Diagrams
• Entity Relationship Diagrams
• System Flowcharts
• Program Flowcharts
• Record Layout Diagrams
 Transaction Processing Models
• Batch Processing
• Real-time Processing
 Data Coding Schemes
• A system without codes
• A system with codes
• Numeric and Alphabetic Coding Schemes
– Sequential Codes
– Block Codes
– Group Codes
– Alphabetic Codes
– Mnemonic Codes