1 / 34

Accounting Information System: DBMS Approach

Explore how Database Management Systems enhance AIS efficiency and accuracy. Learn about AIS structure, cycles, and data flow. Discover advantages of the DBMS over file processing. Basic AIS development abilities included.

mplante
Download Presentation

Accounting Information System: DBMS Approach

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Accounting Information System(DBMS Approach) Yohanes Handoko, SE

  2. Accounting Information System • Definition • Purpose • Uses • Keyword

  3. AIS Definition • A group of structure and procedure based on Information Technology that working together in processing transaction data into accounting information for a certain purpose.

  4. Purpose • Efficiency • Effectivity • Control • Strategic Weapon

  5. Uses • Producing External Reports • Supporting Routine Activities • Decision Support • Planning and Control • Implementing Internal Control

  6. Keyword • Structure • Procedure • Technology • DataInformation • Purpose • Integration • Control • Accounting Cycle (AIS Subsystem)

  7. Structure of AIS • Database as the foundation of AIS • Subsystem of AIS • AIS Application • Network and Integration of AIS • Management & Departement in organization

  8. AIS Financial Report Revenue Cycle Expenditure Cycle GL Cycle HR Cycle Investment Cycle Database

  9. Procedure of AIS • Data and Information flow in Accounting Objects • Data and Information flow in Accounting Cycle • Example: Acquisition Cycle. requisition – order - purchase – delivery – receive

  10. Technology: Ms.Access • Database Management System

  11. DBMS-Definition • Software system that is used to create, maintain, and provide controlled access to user databases • Component of DBMS: • Table (database) • Query • Form • Report • Switchboard Manager (Control) • Security (Control) • Database Splitter & Merge (Integration)

  12. Database • An organized collection of logically related data, usually designed to meet the information needs of multiple users in an organization (different with reporsitory). • Personal Database • Workgroup Database • Departement Database • Enterprise Database

  13. DBMS Component in an Information System Model

  14. Why DBMS? • File Processing Approach – Database Approach • Disadvantages of File Processing Approach and Advantages of Database Approach

  15. Disadvantages of File Processing Approach • Program-Data dependence • Duplication of Data • Limited Data Sharing • Lenghty Development Times • Excessive Program Maintenance

  16. Advantages of Database Approach • Program-Data independence • Minimal Data Redudancy • Improved Data Consistency • Improved Data Sharing • Increased Productivity of Application Development • Enforcement of Standard • Improved Data Quality

  17. Cost and Risk of the Database Approach • Specialized Personnel • Instalation and Management Cost and Complexity • Conversion Cost • Need for Explicit Backup and Recovery • Organizational Conflict

  18. Data • Description about objects, events, activities, and transaction, which don’t have any meaning or have a direct influence to the user • Example: GN 0000-00 • Metadata: Data that describe the properties or characteristics of end user data, and the context of that data

  19. Data files • A data file is a computer file which stores data for use by a computer application or system (different with program file, configuration files, or directory files) • Two types of data files: master files and transaction files (what for?)

  20. Information • Data that have been processed in such way as to increase the knowledge of the person who uses the data

  21. Data - Information • Input the transaction data into the system • Process and query the data to obtain information • Information: Should have meanings for the user

  22. Control • Risk • Internal Control • General Control – Application Control • Preventive, Corrective, Detective

  23. Accounting Cycles/Transaction Cycles(AIS Subsystem) • Revenue • Expense • General Ledger • Investment • Human Resource • Production • Inventory - Jones & Rama in Ch2, organized business process in 3 main transaction cycle: • Acquisition • Conversion • Revenue

  24. Basic Ability in Developing AIS • Accounting logic • DBMS development concept, creating ER-diagram (entity, attribute and relationship), normalization • Converting accounting logic into DBMS

  25. Basic of Accounting logic • Accounting equation • Preparing income statement and balance sheet

  26. DBMS development concept • Defining Entity, Attribute, and Relationship • Creating ER-Diagram • ER-Diagram Mapping into Table • Normalization • Query

  27. Converting Accounting logic into DBMS • 3C: Code of Account, Calendar, Currency in creating financial report based on DBMS. • Creating query based on accounting logic to generate a financial report.

  28. Grouping accounting data based on code of account • Code 1* – Asset – Balance Sheet • Code 2* – Liabilities – Balance Sheet • Code 3* – Equity – Balance Sheet • Code 4* – Revenue – Income Statement • Code 5* – Expense – Income Statement

  29. Converting basic accounting logic into DBMS

  30. References • Jones & Rama, Accounting Information Systems: A Business Process Approach, 1st edition, Thomson Learning, South Western, 2003. Chapter 1 & 2 • Hoffer,Prescott, &McFadden, Modern Database Management, 7th edition, Pearson, Upper Saddle River, 2005. Chapter 1 & 2 • Wilkinson, cerullo, & Raval, Accounting Information System: Essential Concepts and Applications, 4th edition, Wiley, 2005. Chapter 1 & 2

More Related