The image shows a comparison between batch processing and real-time

processing in computer-based accounting systems, focusing on key

differences.

1. Information Time Frame:

a. Batch Processing: There’s a delay between when an event
happens and when it’s recorded. This means the information is
not updated immediately.
b. Real-Time Processing: The processing occurs instantly as the
event happens, so the information is always current.
2. Resources:
a. Batch Processing: Uses fewer resources, such as less hardware
or lower computing power, because it processes data in groups
rather than continuously.
 b. Real-Time Processing: Requires more resources because it
needs to handle data immediately as it’s received.
3. Operational Efficiency:
a. Batch Processing: Some records are only updated at set
intervals to avoid slowing down operations.
b. Real-Time Processing: All records are updated right away,
ensuring the system reflects the latest data instantly.

In short, batch processing is slower but resource-efficient, while real-time

processing provides up-to-the-minute information but uses more resources.

It compares lang yung legacy systems and modern systems in terms

of data processing approaches.

1. Legacy Systems:
a. These are older, mainframe-based systems.
 b. They usually use batch processing (processing data in groups
rather than in real time).
c. Early versions of these systems store data in flat files (simple
files without complex structures).
d. Later versions of legacy systems may use network databases,
which allow for more complex data structures.
2. Modern Systems:
a. These systems are typically client-server or network-based,
which means they connect multiple computers over a network.
b. They generally use real-time processing to handle
transactions as they happen, giving immediate updates.
c. However, despite the trend toward real-time processing, some
modern systems are still mainframe-based and rely on batch
processing.

In short, legacy systems are older and tend to use batch processing, while
modern systems are more networked and favor real-time processing
, updating master files from transactions keeps central records accurate by
reflecting recent activities and changes, ensuring the data in the system
remains current and useful for decision-making. KULANG PA
it explains the concept of database backup and record updating in computer-
based accounting systems.

Here's a simplified explanation:

1. Unique Disk Location: Each record in a database is stored at a

specific location on the disk. This location is determined by a unique
"primary key" (like a unique identifier for each record).
2. In-Place Updating: Since each record has only one valid location, any
updates to the record must happen at that same location. This is
known as an "in-place" update.
3. Destructive Update Approach (Figure 6.29):
a. In this approach, a transaction file updates the balance in the
master file (which holds the account balance).
b. The system reads the original balance ($100), adds the sale
amount ($50), and writes the new balance ($150) back to the
same location.
In essence, instead of creat ka pa ng new file for every update, the system
modifies the existing data directly. This is efficient but requires careful
backup procedures to prevent data loss if something goes wrong during the
update.

it expands on database backup procedures for accounting systems,

specifically addressing the limitations of the destructive update approach
and the need for backups.

Here’s a simplified breakdown:

1. Destructive Update Issue: In a destructive update, the original

record is overwritten by the new value (only the current value is kept).
This means if the current data is corrupted or damaged, there’s no
backup copy of the original file to recover from.
 2. Importance of Backup: To prevent data loss, especially for critical
accounting data. A backup creates a separate copy of the master file
that can be used to restore data if the primary file is compromised.
3. Process (Figure 6.30):
a. A Transaction (like a sale) is applied to the Master File
through an Update Program.
b. At the same time, a Backup Program creates a copy of the
Master File, stored as a Backup Master.
c. If there’s any issue with the Master File, a Recovery Program
can use the Backup Master to restore the data.

In essence, this approach safeguards data by keeping a backup copy,

ensuring that important records aren’t lost if something goes wrong with the
primary data.

it explains the concept of Batch Processing with Real-Time Data

Collection in a computer-based accounting system.
Here’s a simplified explanation:

1. Real-Time Data Collection: This process captures transaction data

as it happens (in real time). For instance, when a customer places an
order, details are recorded immediately by the system. This minimizes
errors because data is entered at the source (where it occurs).
2. Workflow (Figure 6.31):
a. A customer places a Sales Order.
b. The Sales Department inputs the data using a Data Input
Terminal. This data goes to the Accounts Receivable (AR)
Subsystem and the Inventory system to update records in real
time.
c. Invoices are generated and sent to customers.
3. Batch Processing: After real-time data is collected, it goes into a
Batch Process.
a. Sales Orders collected throughout the day are processed in
batches (all together) to update the Sales Journal and General
Ledger Accounts.
b. The Update and Report Program consolidates these
transactions and produces User Documents (reports).

Key Benefit: By combining real-time data collection with batch processing,

the system ensures accurate, up-to-date information. Real-time data entry
reduces errors at the source, and batch processing allows for efficient
handling of large volumes of transactions at once.
The image shows a diagram of a real-time sales order processing system.

This system allows customers to place orders which are processed

immediately, with the information being updated in real-time across
various departments like sales, warehouse, and shipping. This ensures a
smooth and efficient order fulfillment process.

Here is a breakdown of the system:

1. Customer: The customer places an order, triggering the process. 2.

Sales: The sales department receives the order, checks the credit and
inventory availability, and processes the order. 3. Warehouse: The
warehouse receives the order and prepares the goods for shipment. 4.
Shipping: The shipping department prepares the shipping documents,
packs the goods, and ships them to the customer.

Key Features of Real-Time Processing:

Immediate updates: All departments have access to real-time information
about orders, inventory, and customer details.
Improved efficiency: The system eliminates delays caused by manual data
entry and processing.
Increased accuracy: Real-time updates minimize errors and
inconsistencies.
Enhanced customer satisfaction: Customers receive timely updates on
their order status, leading to a more positive experience.

In essence, the real-time processing system is a powerful tool for

businesses looking to optimize their operations, improve
efficiency, and enhance customer service.
The text describes the negative impacts of not using coding schemes in a
business. It says that without codes:
 Sales staff would need to manually transcribe large amounts of
information, increasing the risk of errors and inefficiency.
 Warehouse personnel would face challenges in finding and picking
goods, leading to potential shipping errors.
 Accounting personnel would need to search through lengthy
descriptions in subsidiary files, making the process time-consuming
and prone to errors.

The text also mentions that uncoded entry takes up more space, is time-
consuming, and prone to errors. This is why using coding schemes is
important for a more efficient and error-free system.
The text describes the uses of data coding in accounting information systems
(AIS). It highlights four key benefits:

1. Conciseness: Data coding allows for the efficient representation of

large amounts of complex information, making it easier to manage and
understand.
2. Accountability: Coding provides a mechanism for tracking the
completeness of transactions, enabling better oversight and control
over the financial processes.
3. Uniqueness: Codes help in identifying and differentiating individual
transactions and accounts, ensuring accurate recordkeeping and
analysis.
4. Audit Trail: Data coding facilitates the creation of an effective audit
trail, which is crucial for auditors to verify the accuracy and integrity of
financial records.
The table describes numeric coding schemes, explaining their advantages
and disadvantages.

Sequential Code: This scheme represents items in a specific order. It helps

in reconciling batches of transactions but it doesn't allow for easy insertion of
new items.

Block Code: This scheme allows for the insertion of new codes without
affecting the existing structure, but it's hard to understand the information
represented in the code.

Group Code: This scheme uses hierarchical structures to represent complex

data. It's easily remembered and allows for detailed analysis, but it can be
prone to overuse, resulting in increased storage costs and processing time
 This table summarizes the characteristics of two coding schemes,
Alphabetic Code and Mnemonic Code. Let's break it down:

Alphabetic Code
What it is: It's a code where letters are assigned sequentially, either in
alphabetical order or in blocks, to represent data.
Advantages: It allows for representing many different items because you
can use combinations of letters.
Disadvantages: It can be hard to remember the meaning of the code. Also,
if you try to arrange data alphabetically, it might be difficult to sort it
because the codes are assigned in blocks.

Mnemonic Code
What it is: It's a code where letters are used to create acronyms or other
meaningful combinations. Think of how "FBI" is a mnemonic for "Federal
Bureau of Investigation."
Advantages: It's easy to remember because the code itself helps you
understand the meaning.
Disadvantages: You can't represent a lot of different items with this system
because you're limited by the number of combinations you can make from
the alphabet.

In summary:
Choose Alphabetic Code if you need to represent a lot of things but don't
mind if it's hard to remember.
Choose Mnemonic Code if you need a code that's easy to understand and
remember, even if it can't represent as many things.

it illustrates the relationship of the general ledger system (GLS) to other

information subsystems within a company. The GLS acts as a hub, receiving
information from various subsystems like sales, billing, cash receipts, cost
accounting, accounts payable, cash disbursements, inventory control, and
payroll. This information flows into the GLS, where it is summarized and
processed to create financial reports. The GLS also provides data for the
management reporting system (MRS), which is responsible for generating
reports for internal use.

The Journal Voucher is a document that records and summarizes

transactions of a similar nature in a general ledger. These transactions can
either be individual or grouped together to create a comprehensive
overview.

The Journal Voucher serves to record and identify the financial amounts
involved and the associated general ledger accounts that are affected by
these transactions.
The GLS database is a collection of files that contain financial data for a
company. Here is a breakdown of each file:
 General Ledger Master File: This file is the primary source of
financial data in the GLS database. It contains the organization's chart
of accounts, which is a list of all the accounts used to track financial
activity.
 General Ledger History File: This file contains historical financial
data, which is used to create financial reports that compare financial
performance over time.
 Journal Voucher File: This file contains all the journal vouchers that
have been processed in the current period. Journal vouchers are
documents that record financial transactions.
 Journal Voucher History File: This file contains journal vouchers
from past periods.
 Responsibility Center File: This file contains data about the
revenues, expenditures, and resource utilization of each responsibility
 center in the organization. A responsibility center is a unit of the
organization that is responsible for a particular set of activities.
 Budget Master File: This file contains budgeted amounts for
revenues, expenditures, and other resources for each responsibility
center. A budget is a plan that outlines how much money the
organization expects to earn and spend in a given period.

The GLS database is a powerful tool that can be used to track and manage a
company's finances. It can be used to generate financial reports, analyze
financial performance, and make decisions about the company's future.

The Financial Reporting System (FRS) is a set of accounting standards that

are used by companies to prepare their financial statements. The FRS is
designed to ensure that financial statements are prepared in a consistent
and transparent manner, making it easier for investors and other
stakeholders to understand a company's financial performance.
The FRS requires companies to prepare financial statements that are:
 Prepared and presented by all organizations in a manner that is
generally accepted and understood by external users.
 Prepared on the proposition that the audience comprises
sophisticated users with relatively homogeneous information
needs. This means that the FRS is designed to be used by investors,
creditors, and other sophisticated users who have a high level of
financial knowledge. The FRS helps to provide a common language for
these users, ensuring that they can understand the financial
performance of different companies in a similar way.

the process of financial reporting, which involves several stages. These

stages can be broadly categorized into three phases: Transactions
Processing System (TPS), General Ledger System (GLS), and Financial
Reporting System (FRS).
1. Transactions Processing System (TPS) This is the first stage,
where daily transactions are captured and recorded. The process
involves:
a. Economic Events: Recording economic activities that affect the
business.
b. Capture Transactions: Recording transaction details like date,
amount, and relevant parties.
c. Transactions: Storing and managing transaction data in a
database.
d. Journals: Classifying transactions based on their nature and
type.
e. Ledgers: Summarizing transactions and creating a balance
sheet.
2. General Ledger System (GLS) This stage involves aggregating and
summarizing information from daily transactions into periodic reports.
The process involves:
a. Journal Voucher: Preparing summaries of transactions from
journals.
b. Post to General Ledger: Posting summary data from journal
vouchers to the general ledger.
c. Journal Voucher: Generating and updating journal vouchers for
periodic reporting.
d. Post to General Ledger: Posting updated journal voucher
information to the general ledger.
3. Financial Reporting System (FRS) This is the final stage where
financial statements are prepared and analyzed. The process involves:
a. Trial Balance: Generating a summary of all account balances to
ensure their accuracy.
b. Prepare Adjusting Entries: Making necessary adjustments to
account balances to reflect accurate financial positions.
c. Adjusted Trial Balance: Generating an updated trial balance
after adjusting entries.
d. Prepare Financial Statements: Creating financial statements
like balance sheets, income statements, and cash flow
statements.
e. Analyze Financial Statements: Examining and interpreting
financial statements to provide insights into business
performance.
LAST SLIDE
The image shows a simplified representation of the GL/FRS (General
Ledger/Financial Reporting System) using database technology. It depicts
how data flows within the system, starting from daily transaction processing
and culminating in the production of financial reports.

Here's a breakdown of the image:

 Daily Procedures: The process begins with different daily transaction
systems (Sales, Cash Receipts, Purchases, and other transaction
processing system ). These systems record and summarize
transactions.
 GL Master: The daily summaries are processed and uploaded to the
GL Master, which serves as the primary database of financial
information.
 JV Trans: Journal Voucher Transactions are then processed and
recorded in the JV Trans file.
  Update GL: The GL Master is updated periodically to reflect these JV
Transactions. This ensures the accuracy of the financial data.
 GL History: The GL History file maintains a record of changes made to
the GL Master over time.
 Financial Reporting Group: The final step involves the preparation
of financial reports. This entails adjusting and closing entries for the
period, calculating a trial balance, generating financial statements, and
preparing a post-closing trial balance.
 Summary Reports: The final reports are generated from the data and
made available to users.

The image highlights the essential steps in the financial reporting process,
demonstrating how daily transactions are transformed into meaningful
financial information. It emphasizes the crucial role of the GL Master and the
interconnectedness of various components in this process.