Chapter 8
USING
ACCOUNTING
APPLICATIONS
Organization of
Accounting Applications
Using Accounting
Applications
Accounting Applications
and Modules
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Purchasing module
Sales module
Inventory module
General ledger module
Payroll module
Jobs/projects module
Accounting Applications
and Modules
Integration of modules
Similarities across modules
Processing Modes
4 covered in this text:
 Immediate recording
with immediate
updating: real-time
processing
 Batch recording
(on-line)
 Off-line entry with
batch recording
 Immediate recording
with batch updating
Processing Modes
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Immediate recording with
immediate updating –
real-time processing
Using the sales
application
Effect of recording and
updating on data tables
Prohibition against
deleting posted event
records
Real-time system
Status reports under a
real-time system
Processing Modes

Immediate recording with
immediate updating –
real-time processing
Characteristics:
 Immediate recording
 As data are entered,
there is an immediate
edit
 Immediate update
(posting)
 Posting to the general
ledger module
 Event and status reports
Processing Modes
Batch recording (on-line):
 Data entry steps
1. Accumulate a batch of
source documents and
calculate batch totals.
2. Enter each event in the
batch using an
accounting application.
3. Print an edit report of
all events in the batch.
4. Review the report and
make corrections.
5. Post the batch
Processing Modes
Batch data entry:
 Edit report as a control
Processing Modes
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Effect of batch recording
on tables:
Invoice table before
events are recorded
Invoice table after events
are recorded
Processing Modes
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Effect of posting on
tables and reports:
Batch posting as an
internal control device
Characteristics of a batch
recording system
Processing Modes
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Effect of posting on
tables and reports:
Characteristics of a
batch recording system
1. Event documents not
recorded until batch is
accumulated
2. Batch control totals
calculated before
recording events in
batch
Processing Modes
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Effect of posting on tables
and reports:
Characteristics of a batch
recording system
3. Batch control totals are
entered into the system;
batch# is assigned
4. Each event document
in the batch is entered
one at a time, edited,
and compared to data in
related tables
Processing Modes
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Effect of posting on
tables and reports:
Characteristics of a batch
recording system
5. After all events in the
batch are recorded,
edit report is printed
6. Totals on the edit
report are compared to
the batch control
totals; if agree and
other data appear
accurate, next step is
taken
Processing Modes
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Effect of posting on
tables and reports:
Characteristics of a batch
recording system
7. Batch is posted;
posting date is
recorded in the
Post_Date field in the
event records;
summary fields in
master tables are
updated
Processing Modes
Effect of posting on tables
and reports:
 Characteristics of a batch
recording system
8. Posting to general ledger
module may or may not
occur at the same time the
event records are posted to
the master records in the
module
9. Event and status reports
not up-to-date until batch
is posted
Processing Modes
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Effect of posting on
tables and reports:
Benefits and drawbacks
of batch recording
Processing Modes
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Off-line entry with batch
recording:
Events are recorded
electronically but
without the use of the
main computer
Data entry controls such
as record checking are
not available
Processing Modes
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Off-line entry with batch
recording:
After batch is recorded
off-line, it is uploaded to
the main computer and
checked
Report of all the errors
detected is printed,
corrections are made,
and batch is resubmitted
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
1. No batch totals are
taken
2. Events are recorded
as they occur
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
3. Form used contains a
“save” button
4. System checks are
done as records are
being entered
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
5. Event records are
added to the event
table.
6. After several events
have been recorded, a
list of unposted
invoices is printed
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
7. List of unposted event
records is checked for
accuracy but no
comparison is made of
report totals to batch
control totals
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
8. If recordings appear
to be accurate, the
group of unposted
event records is
posted to the master
tables in the module
Processing Modes
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Immediate recording with
batch updating:
Procedures in
a batch update system
9. Upon posting
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Set Post_Date field in
event records to the
current date
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Summary fields in the
master table are
updated
Processing Modes
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Immediate recording
with batch updating:
Procedures in
a batch update system
10. After posting,
status reports in the
module is up to date
11. Event records may
or may not be posted
to the general ledger
Using Accounting
Applications: Additional
Issues
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Posting to the general
ledger:
Sales module
General ledger module
 Integration of sales
module with general
ledger module – 2
options
Using Accounting
Applications: Additional
Issues
Posting to the general ledger:
 General ledger module –
Option 1
 System adds journal
entries to Journal_Entry
Table
 Updates account balances
in general ledger as soon
as batch of event
documents is posted or
event is recorded (in a
real-time system) in the
sales or other module
Using Accounting
Applications: Additional
Issues
Posting to the general ledger:
 General ledger module –
Option 2
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When event records in
sales module are posted,
general ledger entries are
created and stored in
general ledger module
Using Accounting
Applications: Additional
Issues
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Purging
4 steps for purging event
records:
1. Make sure all event
records in the module
have been posted to the
module’s master tables
and to the general
ledger
2. Print event and ledger
reports
Using Accounting
Applications: Additional
Issues
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Purging
4 steps for purging event
records:
3. Identify records to be
deleted; then archive
them to off-line source
4. Delete event records
are no longer needed
KEYTERMS
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Accounting application
Archive
Batch
Batch recording
Batch total
Batch update
Edit report
Hash total
KEYTERMS
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Module
Off-line
On-line
Posting
Processing mode
Purge
Real-time system
Record count