GBR Integrated Accounting System
| ✅ Paper Type: Free Essay | ✅ Subject: Engineering |
| ✅ Wordcount: 1812 words | ✅ Published: 1st Jan 2015 |
Term Paper of DBMS on Integrated Accounting System
Relational Model table
Integrated Accounting System: - Integrated accounting system is application software or a system of accounting where the cost and financial accounts are kept in the same set of books. It avoids the need for separate set of books for financial and costing purposes. Able to provides or meets the information requirement for costing plus financial accounts.
Need of integrated accounting system: - Before integrated accounting system was made; non-integrated accounting systems or also known as interlocking systems were used. Then why the need of integrated accounting system arrived? First of all an interlocking system is defined as when a business keeps its cost accounts separate from the financial accounts such system is called interlocking accounts
Now in interlocking or non-integrated systems as there were to maintain two different financial books so it created a lot of confusion which also lead to error in records.
Advantages: -
Basically, in an integrated accounting system, the financial and cost transactions are recorded in an integrated ledger which is self balancing. The advantages are as follows:
1. It saves the clerical work because only one set of account is needed to keep the records.
2. No need to reconcile financial and cost profits;
3. No confusion arises from different stock valuations, method of depreciation and profits
4. It lessens the probability of error because recording takes place in one set of accounts and
Information produced on an integrated system is quicker, thus helping management in decision making.
Requirement of an Integrated Accounting System: -
ü Top management needs to decide the extend of integration of the two set of books to integrate until the stage of primary cost or factory cost or full integration
ü A suitable coding system must be developed to serve the purposes of both financial and cost accounting
ü An agreed routine, with regard to the treatment of provision for accruals, prepaid expenses, other adjustments necessary for the preparation of interim accounts
ü Proper coordination should exist between the staff responsible for the financial and cost aspect of the accounts
Modules of an Integrated Accounting System: -
Accounts Payable
* Interactive input vendor invoices
* Credit and debit memos
* Check reconciliation
Accounts Receivable
* Open item or balance forward
* Cash receipts register
* Statements
Suppliers
* Supplier of product
E-R diagram: -
Below E-R diagram is the basic structure which is including the core modules. Further the core modules have a lot of processes which are to be completed. In an E-R diagram there is relation between entities. An entity is denoted by a rectangle. Relationship is denoted by a diamond. Property of an entity is called its attributes and these are denoted by an ellipse.
Entities: - 1. Suppliers
2. Debtors
Attributes: -
1. Vendor Invoices
2. Credit & debit memos
3. Statement
4. Cash receipts
Relations: -
1. Amounts Payable
2. Amounts Receivable
Tabular form showing integrated accounting system: -
Department
Amount receivable (in rs.)
Amount payable (in rs.)
Vendor_name
Vendor_city
Accounts
15000
Singla industries
Ludhiana
Marketing
5000
2500
Big chill ad agency
Delhi
Production
2548
Metal industries
Delhi
Computer
25000
Info solutions
Gurgaon
Marketing
1256
Shams
Delhi
Production
14780
Goel cables wires
Hoshiarpur
Relational Model table:-
The Relational Model uses the concept of a relation using a table rather than a graph or shapes. The information is put into a grid like structure that consists of columns running up and down and rows that run from left to right, this is where information can be categorized and sorted.
The main significance of the relational model is the absolute separation of the logical view and the physical view of the data. The physical view in relational model is implementation dependent and cannot be further defined.
v The different relational tables for integrated accounting system are:-
Table for Sales: -
SNO
ITEM_CODE
QUANTITY
PRICE
1
3310
1
5000
2
3311
1
15000
3
3312
1
25000
4
3313
1
3000
5
3314
1
1200
Above is the -1 which is describing that the values are being are inserted in the table named “Sales”. The query used for this is called insert query. The syntax for insert is: -
Insert into
