Integrated Accounting System
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 <table name> values (<variable name> <data type> <size>,<variable name> <data type> <size>);
Above is the -2 which is describing the table which we created named “Sales” is being viewed using the select statement. The function of the select statement is to select the desired row of table. The operator ‘*’ implies that all the rows are being fetched. The syntax for select statement is as follows: –
Select <column name1>, <column name2> from <table name>;
Table for Purchase: –
S_no
Pro_name
Quantity
Price
1
Antenna
50
200
2
Nokia 3210
3
6000
3
Nokia n95
5
75000
4
Handphone cover
400
20000
5
Nokia n72
5
4000
Above is showing the use of describe statement. Describe statement is used to see the logical structure of the table. It doesn’t show the values rather it shows the structure. Now in above the table “Purchase: is being described.
The syntax for describe is: –
DESC <Table Name>;
Table for Suppliers: –
SUPP_CODE
NAME
AMOUNT
400-L
EVERLAST LTD.
20000
400-E
ERRICSON SUPPLIERS
50000
400-G
NOKIA HANDPHONES
75000
400-M
LION PHONE ACCESSORIES
25000
400-N
MAXIS COMMUNICATION
12000
Table for Debtors: –
Code
Debt_name
Location
Debt_amount
300-A02
ABP ENTERPRISE
DELHI
13520
300-A03
KITTEN SECURITIES
DELHI
13520
300-A04
ORIGINAL TRADING
DELHI
13520
300-A05
SUPER TRADING
DELHI
13520
300-A06
THE MALL HANDPHONE
DELHI
13520
On applying update statement to location of table: –
Code
Debt_name
Location
Debt_amount
300-A02
ABP ENTERPRISE
DELHI
13520
300-A03
KITTEN SECURITIES
NOIDA
13520
300-A04
ORIGINAL TRADING
AMRITSAR
13520
300-A05
SUPER TRADING
HOSHIARPUR
13520
300-A06
THE MALL HANDPHONE
CHANDIGARH
13520
Above is describing the example of using update statement. Update statement is being used in the table debtors. In above the various locations are being modified in the table. Update statement is used to modify the values of the table if by chance some person has entered a wrong value he/she can update the value by using this statement.
The syntax for update statement is: –
Update <table name> set <column name>=”value” where <condition>;
On applying update statement to location of table: –
Code
Debt_name
Location
Debt_amount
300-A02
ABP ENTERPRISE
DELHI
13520
300-A03
KITTEN SECURITIES
NOIDA
35140
300-A04
ORIGINAL TRADING
AMRITSAR
18479
300-A05
SUPER TRADING
HOSHIARPUR
35890
300-A06
THE MALL HANDPHONE
CHANDIGARH
13520
Now except using the basic commands like create, insert, and update we can also use various functions in SQL also for example: –
1. Sum
2. Average
3. Minimum
4. Maximum
Now above is describing the use of Sum () function. On applying the sum function the output will be sum of the numeric values of that column.
In above it is shown that we need not select all the rows of the table. We can also select the desired row and column of the table. The syntax for using above query is: –
Select <column name1>,<column name2> from <table name> where <condition>;
Above is describing the use of Avg or Average () function. On applying the sum function the output will be sum of the numeric values of that column.
Syntax for using average is: –
Select AVG (<column name>) from <table name>;
Bibliography: –
1. http://www.ccs4vms.com
2. http://www.dbti.com
3. http://www.conceptdraw.com
4. http://www.smartdraw.com
5. Fundamentals of database system by Elmasri Navathe
6. Database System Concepts by Henry F. Korth and Abraham silberchatz
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