Lecture 4
Data Storage,
Access and
Processing
(Chapter 2 & 4)
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Subject Learning Outcome
CLO1 - Discuss the application of various technologies in
accounting information systems
CLO2 - Apply a payroll software package to record
business transactions.
CLO3 - Discuss the different approaches for data storage,
transaction processing and database systems.
CLO4 - Analyse internal control techniques in computer
fraud and various business cycles.
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Coverage
Data Storage
Data Hierarchy
Types of Files
File Access
Data Processing
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Data Storage
A company’s data is one of its most
important resources.
An organisation must have ready and easy
access to its data in order to function
properly.
Thus, accountants need to know how to
manage data for maximum corporate use.
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Fundamental Data Storage
Concepts and Definitions
What is an entity?
An entity is something about which
information is stored.
What are some examples of entities?
– employees
– inventory items
– customers
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Fundamental Data Storage
Concepts and Definitions
What are attributes?
Each entity has attributes, or characteristics
of interest, which need to be stored.
What are some examples?
– employee pay rates
– customer addresses
– customer name
– stock description
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Data Elements
Every recorded attribute of an entity is a data
element
Field Length: This is the number of positions
required to store a data element
Data Type:
◦ Character
◦ Numeric
◦ Date
Data Value
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Fundamental Data Storage
Concepts and Definitions
Computers store data by organizing
smaller units of data into large, more
meaningful ones.
A field is the smallest element of data
storage.
A number of fields are grouped together
to form a record, which is a collection of
data values that describe specific
attributes of one entity.
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Fundamental Data Storage
Concepts and Definitions
Related records are grouped together to
form a file.
What is an example of a file?
– the accounts receivable file
Files containing related data are combined
to form a data base.
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Fundamental Data Storage Concepts
and Definitions – DATA HIERARCHY
Database
Level
Database
File Customer File Inventory File
Level
Record 1: Record 2: Record 1: Record 2:
Record
Customer 1 Customer 2 Product1 Product 2
Level
Field 1: Field 2: Field 3 : Field 1: Field 2: Field 3 :
Field
Customer Customer City Product Product Price
Level
Number Name Number Name
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Types of Files
Two types
The Master File The Transaction File
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Master Files
Master Files contain (semi) permanent data (records)
pertaining to entities (people, places, and things).
Accounting related examples :
Customer/Accounts Receivable master file
Vendor/Accounts Payable master file
Inventory master file
Employee/Payroll master file
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Transaction Files
Transaction Files contain records pertaining to events
currently being processed, such as sales, receipts of
goods, etc.
The files also capture detailed transaction data. They
are counterparts to general and special journals in
manual systems
Transaction data are periodically posted to related
master file(s) and are then either purged or archived.
Accounting related transaction files include:
◦ General/Special journal file (General ledger)
◦ Sales/Cash receipts file (Accounts receivable)
◦ Receiving/Purchases file, Cash disbursements file (Inventory, Accounts payable)
◦ Inventory issuance file/shipment file/sales file/adjustments file (Inventory)
◦ Payroll/Cash disbursements (Payroll)
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Design Considerations for Records
& Files
Managing files and records requires the
answering of questions such as:
◦ How should the records be structured
◦ What type of file organisation and access
method (e.g., sequential, indexed sequential,
random) should be used
◦ How long should records be retained
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Establishing Record Structures
Generally the primary keys are placed to occupy
the first fields of the records
Generally balance amounts or amounts of
transactions are placed in the last fields
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File Access and organisation
All computer systems must have some
formalised means of organising data so
that it can be accessed easily and
efficiently.
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Record-Key
Record keys: These are data elements within
records that serve as sort keys. e.g., customer-
account number
Two types of keys often used in master and
transaction file records are a primary key and one
or more secondary keys
◦ A Primary key (also called a record key) is the
attribute that uniquely identifies a specific record.
They are usually of numeric or alphanumeric modes,
e.g., customer number
◦ A Foreign key is an attribute appearing in one
table that is itself the primary key of another table.
Foreign keys are used to link tables.
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Accessing Individual Records
Records are typically updated, stored, and
retrieved using an identifier called a
primary key.
What are some examples of the
appropriate primary key for a record?
– customer number for the customer file
– invoice number for the invoice file
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Accessing Individual Records
A secondary key is another field used to identify a
record.
Secondary keys do not uniquely identify individual
records, but identify a group of records.
What are some examples of secondary keys?
– invoice due date
– postal code
– customer name
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Primary & Secondary Keys
Record Type Primary Key Secondary Key
Payroll Employee Number Employee Name, Payroll date,
Department.
Customer Account Number Customer Name, Balance, Credit
Limit
Fixed Assets Asset Number Location, Date of acquisition,
Vendor Number
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File Processing
Additions insert new records into a
master file.
Deletions remove records from a master
file.
Updates revise current balances in
master files.
Changes modify the data values of other
fields in master files.
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File Access
What is file access?
– the way a computer locates stored
records
a) Sequential Access
b) Direct Access
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Sequential Access File
Sequential access files store records in
order according to their primary key (e.g.,
customer numbers from 00001 to
99999).
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Sequential File Structure
Primary Key Customer
Name
2112 Jessica Alba
2113 Tom Hanks
2114 Robert Downey Jr
Keys are in sequence (ascending order) and unique
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Direct Access
Direct access files store records in no
particular order.
A mathematical algorithm is applied to
the primary key to determine the physical
address at which to store that record.
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Data Processing
The most common data processing
activity is data maintenance.
Data maintenance is the periodic
processing of transactions to update
stored data.
What are some commonly used types of
data maintenance?
◦ Batch Processing
◦ Online, Real Time Processing
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Batch Processing
Batch processing is updating master files
periodically to reflect all transactions that occurred
during a given time period.
The master file is updated at set times or whenever
a manageable number of transactions are gathered.
Transaction data can either be entered as a batch
or as each transaction occurs.
Example – FOM at the counter (manual) subject
registration
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Batch Processing
With batch processing, clerks write down the data
necessary for recording accounting transactions.
They then accumulate data in batches of say 50
documents per batch and deliver these batches to data
entry clerks who convert them into computer-readable
form.
Each batch becomes a computer transaction file. After
data entry, the computer program processes the
transactions an entire batch at a time.
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On-line, Real-Time Processing
In on-line, real-time processing, the
computer captures data electronically,
– edits it for accuracy and completeness, and
– immediately processes it.
The computer also processes
information requests from users.
Example – cimbclicks and maybank2u
online transactions
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Adv vs Disadv
Online,
Batch Real Time
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End of Lecture 4
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