accounting information system (dbms approach) yohanes handoko, se

Accounting Information System(DBMS Approach)

Yohanes Handoko, SE

Accounting Information System

DefinitionPurposeUsesKeyword

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.

Purpose

Efficiency Effectivity Control Strategic Weapon

Uses

Producing External Reports Supporting Routine Activities Decision Support Planning and Control Implementing Internal Control

Keyword

StructureProcedureTechnologyData InformationPurposeIntegrationControlAccounting Cycle (AIS Subsystem)

Structure of AIS

Database as the foundation of AISSubsystem of AISAIS ApplicationNetwork and Integration of AISManagement & Departement in

organization

Database

Revenue CycleExpenditure

CycleGL Cycle HR Cycle

InvestmentCycle

Financial Report

AIS

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

Technology: Ms.Access

Database Management System

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)

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

DBMS Component in an Information System Model

Why DBMS?

File Processing Approach – Database Approach

Disadvantages of File Processing Approach and Advantages of Database Approach

Disadvantages of File Processing Approach

Program-Data dependenceDuplication of DataLimited Data SharingLenghty Development TimesExcessive Program Maintenance

Advantages of Database Approach

Program-Data independenceMinimal Data RedudancyImproved Data ConsistencyImproved Data SharingIncreased Productivity of Application

DevelopmentEnforcement of StandardImproved Data Quality

Cost and Risk of the Database Approach

Specialized PersonnelInstalation and Management Cost and

ComplexityConversion CostNeed for Explicit Backup and RecoveryOrganizational Conflict

Data

Description about objects, events, activities, and transaction, which don’t have any meaning or have a direct influence to the user

Example: GN 0000-00Metadata: Data that describe the

properties or characteristics of end user data, and the context of that data

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?)

Information

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

Data - Information

Input the transaction data into the systemProcess and query the data to obtain

informationInformation: Should have meanings for the

user

Control

RiskInternal ControlGeneral Control – Application ControlPreventive, Corrective, Detective

Accounting Cycles/Transaction Cycles(AIS Subsystem)

RevenueExpenseGeneral LedgerInvestmentHuman ResourceProductionInventory

- Jones & Rama in Ch2, organized business process in 3 main transaction cycle:

AcquisitionConversionRevenue

Basic Ability in Developing AIS

Accounting logic DBMS development concept, creating ER-

diagram (entity, attribute and relationship), normalization

Converting accounting logic into DBMS

Basic of Accounting logic

Accounting equationPreparing income statement and balance

sheet

DBMS development concept

Defining Entity, Attribute, and RelationshipCreating ER-DiagramER-Diagram Mapping into TableNormalizationQuery

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.

Grouping accounting data based on code of account

Code 1* – Asset – Balance SheetCode 2* – Liabilities – Balance SheetCode 3* – Equity – Balance SheetCode 4* – Revenue – Income StatementCode 5* – Expense – Income Statement

Converting basic accounting logic into DBMS

Form Daftar AKun

Form Transaksi

Tabel Akun (Chart of Account)

Tabel Transaksi

Query Transaksi

1* Query Aktiva (aset)

2* Query Utang

3* Query Modal

4* Query Pendapatan

5* Query Biaya

(Expense)

Query Saldo Aktiva

Query Saldo Utang

Query Saldo Modal

Query Laba/Rugi

Query Saldo Laba

Query Modal Akhir

Query Pasiva (saldo)

Total Pasiva

Modal Akhir

Total Utang

Total Aktiva

NERACA

Laba/Rugi

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