Page 81 - Accounting Information Systems

52 PART I Overview of Accounting Information Systems

FI GU RE
2-11 ACCOUNTING RECORDS IN A COMPUTER-BASED SYSTEM

Audit Trail Balance
Source
Document Sheet
Sales Keying AR XXX
Orders
1

Transaction
File
Reference File
Sales
4 Orders
Master Files

Credit File
General Ledger
Control Accounts
Accounts Receivable
Update Inventory
Program Cost of Goods
Sold
Sales
Journal

Archive File
2

Error File

3 AR Subsidiary

Inventory
Subsidiary

TRANSACTION FILE. A transaction file is a temporary file of transaction records used to change
or update data in a master file. Sales orders, inventory receipts, and cash receipts are examples of transac-
tion files.

REFERENCE FILE. A reference file stores data that are used as standards for processing transactions.
For example, the payroll program may refer to a tax table to calculate the proper amount of withholding
taxes for payroll transactions. Other reference files include price lists used for preparing customer in-
voices, lists of authorized suppliers, employee rosters, and customer credit files for approving credit sales.
The reference file in Figure 2-11 is a credit file.

ARCHIVE FILE. An archive file contains records of past transactions that are retained for future refer-
ence. These transactions form an important part of the audit trail. Archive files include journals, prior-
period payroll information, lists of former employees, records of accounts written off, and prior-period
ledgers.