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