Transactional Processing and Data Management Describe how Peachtree Complete Acc

Question

Transactional Processing and Data Management

Describe how Peachtree Complete Accounting handles processing the accounting transactions and recording business activities for the revenue, expenditure and financing cycles. You should provide at least one detailed example of how one would record a specific accounting transaction/ business activity for each of the three transaction cycles below. Address the following questions in this section of the report.

1. Revenue Cycle (2 pages) Answer the following questions.

Explanation / Answer

I.REVENUE CYCLE

The revenue cycle is the set of activities in a business which brings about the exchange of

goods or services with customers for cash. Most business transactions are conducted on a

credit basis. Cash is received after goods are shipped to the customer. Your book discusses

this as a two phase process: the physical phase in which goods or services are transferred to

the buyer; and the financial phase in which the cash is received from the buyer. The first

phase is handled by the sales order processing subsystem, the latter by the cash receipts

subsystem.

The first section of the chapter provides an overview of the revenue cycle presented as a

manual system. The second section examines various ways to computerize this effort, from

traditional data processing to process reengineering. The last section considers

microcomputer systems and control implications

The data flow diagram presented in

represents what must occur in the sales order processing part

of the revenue cycle. Eight different steps, or processes, are

represented in the DFD and discussed in the narrative. Use

both text and diagram to grasp what happens in each process.

Note also the entities involved and the data stores or files

used.

Regardless of how a particular business is organized, if it sells

to its customers on credit, all of these eight steps must occur.

This discussion focuses on the work to be done and the

required flows of data, but not the methods used to do the

work.

The events just described as part of a manual sales order

processing system must happen even when technology is used

in parts of the system

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