DESIGN AND

IMPLEMENTATION OF

REAL TIME

PROCESSING IN

ACCOUNTING

INFORMATION SYSTEM.

1
 BY

…………………………………………………..

COLLEGE OF ACCOUNTANCY AND COMPUTER TECHNOLOGY

AKP/WRR/ASC/CSC/ND2007/…………

BEING A PROJECT WORK SUBMITED TO THE DEPARTMENT OF

COMPUTER SCIENCE, IN PARTIAL FULFILMENT FOR THE AWARD OF

NATIONAL DIPLOMA (ND) IN COMPUTER SCIENCE

NOVEMBER 2009

2
 CERTIFICATION

We hereby certify that this research project was carried out

by .................................................... for the award of NATIONAL

DIPLOMA CERTIFICATE in computer science. Department of

computer science, Akwa Ibom State Polytechnic. Ikot Osurua.

_________________ ________________

DATE
Project supervisor

_________________ ________________

DATE
Centre co-ordinator

3
 DEDICATION

This research project is dedicated to the Almighty God for His ever enduring

love, kindness, mercy and grace all through the course of this programme.

Father, I thank and worship you and give You all the Glory and Honour.

4
 ACKNOWLEDGEMENT

I wish to express my unfathomable gratitude to my project

supervision Mr. Kolade Oluwa who patiently read-through this project

work and made some corrections where necessary which brought this

project work near perfection.

My special gratitude also goes to the center coordinator, Mrs.

Ogbinaka .F, the registrar Mrs. Stella Oyabugbe and all the lecturers

in Warri campus, Akwa Ibom State Polytechnic, Ikot Osurua, Ikot-

Ekpene (Warri Center) for the Educational assistance and advice.

May the ALMIGHTY GOD BLESS YOU ALL.

5
 ABSTRACT

This research work empirically synthesizes the design and

implementation of real time processing in accounting information

system.

Real-time processing is an e-business term used to describe the

situation whereby a user sends in transactions and awaits a response

from a distant computer before continuing. Response time on the

data communications facility is crucial when a customer is utilizing a

voice call to obtain information requiring a quick response, i.e.

booking an airline flight or obtaining stock details. In a real time

processing, there is a continual input, process and output of data.

Data has to be processed in a small stipulated time period (real time),

otherwise it will create problems for the system.

INFORMATION SYSTEMS IN CONTEXT AISs cover all business functions

from backbone accounting transaction processing systems to

sophisticated financial management planning and processing systems.

The development of AIS includes five basic phases: planning, analysis,

design, implementation, and support.

6
In this research work, the researcher will consider in chapter

one….the introduction of the study which will in turn considers the

following topics. The background of the study, the statement of

research problem, the objective of the study, significance of the

study, the hypothesis and the structure of the work.

Chapter two focuses on the literature review, this chapter is where

the researcher extract materials from various books, magazines, news

papers and internet resources. In chapter three, the researcher deals

on system analysis and design while chapter four is design

methodology and technology . The implementation, recommendation

and conclusion is in chapter five.

7
 TABLE OF CONTENTS

Title page - - - - - - - - - i

Certification - - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - - - - - - - v

Abstract - - - - - - - - - v

Table of content - - - - - - - -

viii

CHAPTER ONE

INTRODUCTION

1.1 The background of the study - - - - - 1

1.2 Objective of the study - - - - - - 1

1.3 Scope of the study - - - - - - 2

1.4 Significance of the study - - - - - 3

1.5 Limitation of the study - - - - - - 3

1.6 Research methodology - - - - - - 4

CHAPTER TWO

LITERATURE REVIEW

1.0 A scenario of information system - - - - 5

2.0.1 An information system - - - - - - 5

8
2.0.2 Accounting information system - - - - 6

2.1 Real time processing - - - - - - 6

2.2 Batch processing - - - - - - - 7

2.3 Real-time and batch processing - - - - 7

2.4 Features - - - - - - - - 8

2.4.1 Rapid response - - - - - - - 8

2.4.2 Reliability - - - - - - - - 9

2.4.3 Inflexibility - - - - - - - - 9

2.4.4 Controlled processing - - - - - - 9

2.5 Acid test properties first definition - - - -

10

2.5.1 Atomicity - - - - - - - -

10

2.5.2 consistency - - - - - - - -

10

2.5.3 Isolation - - - - - - - -

10

2.5.4 Durability - - - - - - - -

10

9
2.5.6 Concurrency - - - - - - - -

11

2.6 Updating in real-time - - - - - - 11

2.7 (Accounting information) - - - - -

12

2.8 Management information systems (MIS) - - -

13

2.9 AIS-accounting information system in context -

14

CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

3.1 The spectrum of system analysis - - - -

15

3.1.1 Anatomy of the existing system - - - - 17

3.1.2 The merit of the existing system - - - - 19

3.2.1 The problems of the existing system - - - 20

3.1.2.2 The need for an alternative system - - - 21

3.1.3 The proposed system - - - - - - 22

3.2 System design - - - - - - - 22

3.3 Output design - - - - - - - 32

10
3.4 Input design - - - - - - - - 34

3.5 File design - - - - - - - - 34

3.6 Validation database - - - - - - 36

3.7 File security - - - - - - - - 37

CHAPTER FOUR

DESIGN METHODOLOGY AND TECHNOLOGY

4.1 Programming language - - - - - - 38

4.2 Objects and properties - - - - - - 43

4.3 Methods - - - - - - - - - 43

4.4 Events - - - - - - - - - 43

4.5 Internet information service - - - - - 44

CHAPTER FIVE

IMPLEMENTATION, CONCLUSION AND

RECOMMENDATION

5.1 Implementation - - - - - - - 45

5.2 System modification - - - - - - 49

5.3 System testing - - - - - - - 51

5.4 Change over technique - - - - - - 52

5.5 Conclusion - - - - - - - - 53

5.6 Recommendation - - - - - - - 53

11
 CHAPTER ONE

INTRODUCTION

1.1 THE BACKGROUND OF THE STUDY:

This is an extract from the work of renowned researchers, practitioners and

expert in the field of real-time system. Their works are grouped into six parts,

together encompassing twenty chapters. Each part is devoted to a mainstream

subject, the chapters therein developing one of the major aspects of real-time

system theory, modeling, design, and practical applications. Starting with a

general approach in the area of formalization of real-time systems, and setting

the foundations for a general systemic theory of those systems, the book

covers everything from building modeling frameworks for various types of

real-time systems, to verification, and synthesis.

1.2 OBJECTIVES OF THE STUDY:-

It would have been a total waste of time, efforts, energy and ofcourse fund, in

conducting this research if it was not meant to achieve any meaningful

objectives. The research would also have been seen as a fruitless exercise if

there were no fundamental objectives to be achieved at the end of the study.

The research is aimed at describing the design and implementation of real time

processing in accounting information system.

12
The objectives of the study therefore are:

(i) To investigate the role and the relative efficiency of the Design and

implementation of real time processing system in accounting information

system

(ii) To find out whether or not, this real time processing system require the

use of software and hardware.

(iii) To enable the researcher avail himself the opportunity of contribute his

quota to the pool of knowledge on the real time processing system in

accounting information system.

(iv)To find out how effective real time processing works in business

organization.

(iv) To provide an objectively sufficient ground for the researcher to make

contributions to the "GREAT DEBATE" as to whether information system

components involve the use of computer and other automations.

(v) To determine various information system careers available in an

organization.

1.3 SCOPE OF THE STUDY

This research will give an overview of real time processing system as well as

the description of various accounting information systems.

13
Other areas of coverage will be the design and implementation of the system.

1.4 SIGNIFICANCE OF THE STUDY:-

The researcher has no doubt whatsoever, that the findings presented in this

study, will be of immense benefit to the following categories of people

amongst others:

• policy makers in various business organizations

• the managers and chief executives of Gonel Systems Limited.

• all internet and information system users in Gonel Systems

Limited

• system analysts

• information system administrators

• project managers

• management accountant

• decision support system experts

• students of management science

• computer science students

• other researchers

14
1.5 LIMITATION OF THE STUDY

Research work is subject to one form of limitation or the other, mine is not an

exemption. It was the initial thought of the researcher that the exercise was

easy but the contrary was the case. As a student, several academic demands

compete with the limited but precious time available.

This implies that none of the competing exercise could be effectively handled

without the others being worse off.

This was my situation. Although the time expended was too small to do justice

to the study. The opportunity cost in terms of other equally important activities

forgone or cursorily attended to, was made.

The researcher faces some embarrassment arising from low-level educated

staff of the company completing the questionnaire who could not understand

the essence of the research work as this.

1.6 RESEARCH METHODOLOGY

Information for this research study was gathered from various sources such as:

(1) The Internet: A large part of the materials were extracted from the internet

on design and implementation of real time system.

(2) The procedural manuals and past research materials/projects on accounting

information system .

15
(3) Some of the information used were extracted from compact disk that has

related topic.

CHAPTER TWO

LITERATURE REVIEW

1.0 A SCENARIO OF INFORMATION SYSTEM

Nigeria, a developing country like other developing countries is, transforming

into an information society where value is now based on the ability to use,

share and create knowledge and information. Obviously, the success in the

information society demands computer literacy.

A system is a set of inter-dependent components (some of which may be

systems in their own right) which collectively accomplish certain objectives.

2.0.1 An information system?

An information system differs from other kinds of systems in that its objective

is to monitor/document the operations of some other system, which we can call

a target system. An information system can not exist without such a target

system. For example, production activities would be the target system for a

production scheduling system, human resources in the business operations

would be the target system of a human resource information system, and so on.

16
It is important to recognise that within a vending machine there is a

component/sub-system that can be considered an information system. In some

sense, every active system will have a subsystem that can be considered an

information system whose objective is to monitor and control such a reactive

system.

2.0.2 Accounting information system?

Being an information system, an accounting information system must have a

target system. It should be obvious that the target system must be business

operations in a narrow sense. Other non-accounting aspects of business

operations are covered by information systems such as Human Resources

Information System, Management Information System, Production

Planning/Scheduling System, Strategic Planning System, and so on. The target

system for an accounting system has to do with the aspects of business

operations having a module of assets/liabilities, determining the result of

operations that ultimately leads to the computation of comprehensive income,

and the financial reporting aspects of business operations.

2.1 REAL TIME PROCESSING

In a real time processing, there is a continual input, process and output of data.

Data has to be processed in a small stipulated time period (real time),

otherwise it will create problems for the system.

For example: assembly line robots and radar system.

17
Real-time processing is an e-business term used to describe the situation

whereby a user sends in transactions and awaits a response from a distant

computer before continuing. Response time on the data communications

facility is crucial when a customer is utilizing a voice call to obtain

information requiring a quick response, i.e. booking an airline flight or

obtaining stock details.

2.2 BATCH PROCESSING

In batch processing, group of transactions is collected over a period of time,

entered, processed and then the batch results are produced. Batch processing

requires separate programs for input, process and output. It is an efficient way

of processing high volume of data.

For example: Payroll system, Examination system and billing system.

2.3 REAL-TIME AND BATCH PROCESSING

There are a number of differences between real-time and batch

processing. These are outlined below:

Each transaction in real-time processing is unique. It is not part of a

group of transactions, even though those transactions are processed

in the same manner. Transactions in real-time processing are stand-

18
alone’s both in the mode of entry to the system and also in the

handling of output.

Real-time processing requires the master file to be available more

often for updating and reference than batch processing. The database

is not accessible all of the time for batch processing.

Real-time processing is less error-prone when compared to batch

processing, as transaction data is validated and entered immediately.

With batch processing, the data is organised and stored before the

master file is updated. Errors can occur during these steps.

More computer operators are required in real-time processing, as the

operations are not centralised. It is more difficult to maintain a real-

time processing system than a batch processing system.

2.4 FEATURES
2.4.1 Rapid response

Fast performance with a rapid response time is critical. Businesses cannot

afford to have customers waiting for a TPS(transaction processing system) to

respond, the turnaround time from the input of the transaction to the

production for the output must be a few seconds or less.

19
2.4.2 Reliability

Many organizations rely heavily on their TPS; a breakdown will disrupt

operations or even stop the business. For a TPS to be effective, its failure rate

must be very low. If a TPS does fail, then quick and accurate recovery, must

be possible. This makes well–designed backup and recovery procedures

essential.

2.4.3 Inflexibility

A TPS wants every transaction to be processed in the same way regardless of

the user, the customer or the time for day. If a TPS is flexible, there would be

too many opportunities for non-standard operations, for example, a

commercial airline needs to consistently accept airline reservations from a

range of travel agents, accepting different transactions data from different

travel agents would be a problem.

2.4.4 Controlled processing

The processing in a TPS must support an organization's operations. For

example if an organization allocates roles and responsibilities to particular

employees, then the TPS should enforce and maintain this requirement.

20
2.5 ACID TEST PROPERTIES: FIRST DEFINITION

2.5.1 Atomicity

The probability of transaction changes are atomic. These changes include

database changes, messages, and actions on transducers.

2.5.2 Consistency

A transaction is a correct transformation of the state. The actions taken as a

group do not violate any of the integrity constraints associated with the state.

2.5.3 Isolation

Even though transactions execute concurrently, it appears to each transaction

T, that others executed either before T or after T, but not both.

2.5.4 Durability

Once a transaction completes successfully (commits), its changes to the state

survive failures.

2.5.6 Concurrency

Ensures that two users cannot change the same data at the same time. That is,

one user cannot change a piece of data before another user has finished with it.

2.6 UPDATING IN REAL-TIME

21
This is the immediate processing of data. It provides instant confirmation of a

transaction. This involves a large amount of users who are simultaneously

performing transactions to change data. Because of advances in technology

(such as the increase in the speed of data transmission and larger bandwidth),

real-time updating is now possible.

Steps in a real-time update involve the sending of a transaction data to an

online database in a master file. The person providing information is usually

able to help with error correction and receives confirmation of the transaction

completion.

Updating in real-time uses direct access of data. This occurs when data are

accessed without accessing previous data items. The storage device stores

data in a particular location based on a mathematical procedure. This will then

be calculated to find an approximate location of the data. If data are not found

at this location, it will search through successive locations until it's found.

The information technology used could be a secondary storage medium that

can store large amounts of data and provide quick access (thus the common

choice of a magnetic disk). It requires a user-friendly interface as it's

important for rapid response time.

22
2.7 ACCOUNTING INFORMATION SYSTEM (AIS)

TECHNOLOGY

Input: The input devices commonly associated with AIS include: standard

Personal Computers or workstations running applications; scanning devices

for standardized data entry; electronic communication devices for Electronic

Data Interchange (EDI) and e-commerce. In addition, many financial systems

come "Web-enabled" to allow devices to connect to the World Wide Web.

Process: Basic processing is achieved through computer systems ranging from

individual personal computers to large-scale enterprise servers. However,

conceptually, the underlying processing model is still the "double-entry"

accounting system initially introduced in the fifteenth century.

Output: Output devices used include computer displays, impact and

nonimpact printers, and electronic communication devices for EDI and e-

commerce. The output content may encompass almost any type of financial

reports from budgets and tax reports to multinational financial statements.

23
2.8 MANAGEMENT INFORMATION SYSTEMS(MIS)

MIS are interactive human/machine systems that support decision making for

users both in and out of traditional organizational boundaries. These systems

are used to support an organization's daily operational activities; current and

future tactical decisions; and overall strategic direction. MISs are made up of

several major applications including, but not limited to, the financial and

human resources systems.

Financial applications make up the heart of an AIS in practice. Modules

commonly implemented include: general ledger, payables,

procurement/purchasing, receivables, billing, inventory, assets, projects, and

budgeting.

Human resource applications make up another major part of modern

information systems. Modules commonly integrated with the AIS include:

human resources, benefits administration, pension administration, payroll,

time and labor

24
2.9 AIS—ACCOUNTING INFORMATION SYSTEMS IN

CONTEXT

AIS(accounting information system) cover all business functions from

backbone accounting transaction processing systems to sophisticated financial

management planning and processing systems.

Financial reporting starts at the operational levels of the organization, where

the transaction processing systems capture important business events such as

normal production, purchasing, and selling activities. These events

(transactions) are classified and summarized for internal decision making and

for external financial reporting.

Cost accounting systems are used in manufacturing and service environments.

These allow organizations to track the costs associated with the production of

goods and/or performance of services. In addition, the AIS can provide

advanced analyses for improved resource allocation and performance tracking.

Management accounting systems are used to allow organizational planning,

monitoring, and control for a variety of activities. This allows managerial-level

employees to have access to advanced reporting and statistical analysis. The

systems can be used to gather information, to develop various scenarios, and to

choose an optimal answer among alternative scenarios.

25
 CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

3.1 THE SPECTRUM OF SYSTEM ANALYSIS

Systems are created to solve problems. Many of the fundamental

considerations affecting the design of a system, stems often unconsciously,

from the systems approach to organisations. The systems approach has many

facets of which the following are the most important:

• All systems are composed of inter-related parts or sub-systems and the

system can only be explained as a whole. This is known as holism or

synergy. The systems view is that the whole is more than just the sum of

the parts and that vital inter-relationships will be ignored or

misunderstood if the separate part are studied in isolation.

• Systems are hierarchical in that the parts or sub-systems are made up of

other smaller parts. For example, the accounting system of an

organisation may be a sub-system of the information system, which is

itself a sub-system of the organisation as a whole. Real time processing

system is a sub-system of an accounting information system.

26
 • The parts of a system constitute an indissoluble whole so that no part

can be altered without affecting other parts. Many organisational

problems stem from ignoring this principle. For example, a departmental

procedure or form might be changed without considering the ripple

effects on the other departments affected, with dire consequences.

Internet information system is so dynamic in an organization that can

not be ignored or overlooked.

• The sub-systems should work towards the goals of their higher systems

and not pursue their own objectives independently..

System analysis is the stage in the software development process whereby an

existing system is analysed so as to ascertain the problems associated with it in

order to proffer solutions to the problems identified.

The analysis phase is used to both determine and document the accounting and

business processes used by the organization. Such processes are redesigned to

take advantage of best practices or of the operating characteristics of modern

system solutions.

Data analysis is a thorough review of the accounting information that is

currently being collected by an organization. Current data are then compared

27
to the data that the organization should be using for managerial purposes. This

method is used primarily when designing accounting transaction processing

systems.

Decision analysis is a thorough review of the decisions a manager is

responsible for making. The primary decisions that managers are responsible

for are identified on an individual basis. Then models are created to support

the manager in gathering financial and related information to develop and

design alternatives, and to make actionable choices. This method is valuable

when decision support is the system's primary objective.

Process analysis is a thorough review of the organization's business processes.

Organizational processes are identified and segmented into a series of events

that either add or change data. These processes can then be modified or

reengineered to improve the organization's operations in terms of lowering

cost, improving service, improving quality, or improving management

information. This method is appropriate when automation or reengineering is

the system's primary objective.

3.1.1 ANATOMY OF THE EXISTING SYSTEM.

A Subsystem of a Management Information System (MIS) processes financial

transactions to provide (1) internal reporting to managers for use in planning

28
and controlling current and future operations and for nonroutine decision

making; (2) external reporting to outside parties such as to stockholders,

creditors, and government agencies.

Accounting Information Systems (AISs) combine the study and practice of

accounting with the design, implementation, and monitoring of information

systems. Such systems use modern information technology resources together

with traditional accounting controls and methods to provide users the financial

information necessary to manage their organizations.

AISs cover all business functions from backbone accounting transaction

processing systems to sophisticated financial management planning and

processing systems.

In a real time processing, there is a continual input, process and output of data.

Data has to be processed in a small stipulated time period (real time),

otherwise it will create problems for the system.

For example: assembly line robots and radar system.

For example:

In a bank transaction, Ekom tried to deposit money into his account.

In REAL TIME, the money is DEPOSITED right away as soon as Ekom

29
handed the money.. and there's no turning back! :)

Steps in a real-time update involve the sending of a transaction data to an

online database in a master file. The person providing information is usually

able to help with error correction and receives confirmation of the transaction

completion.

Updating in real-time uses direct access of data. This occurs when data are

accessed without accessing previous data items. The storage device stores data

in a particular location based on a mathematical procedure. This will then be

calculated to find an approximate location of the data. If data are not found at

this location, it will search through successive locations until it's found.

3.1.2 THE MERIT OF THE EXISTING SYSTEM

For some tasks, a computer must process information to meet some real world

time deadline. The time deadline must be met regardless of how much work

the computer has to do. Usually real time computer systems are required to

process information very quickly. Most real time systems appear to process

data instantly. A computer system which must process data extremely quickly

to meet a real world deadline is known as a real time system. Here are some

of the advantages:

30
• Money is transferred at the time of the transaction.

• No manual card processing work required! You simply need to pack and

send the order.

• You only receive orders that have actually passed the processing stage.

Eliminates time wasters.

• If real-time systems were not available we would not be able to do

certain jobs.

• Becoming cheaper as ecommerce becomes more commonplace.

3.2.1 THE PROBLEMS OF THE EXISTING SYSTEM

• Limited functionality, by design

• Information overload for some managers

• High implementation costs

• System may become slow, large, and hard to manage

• Cards are processed regardless of stock level or availability. If you are

out of stock then you must organise a refund. (Most payment gateway

companies now provide you with the means for doing refunds however.)

• There is no facility to avoid processing fraudulent orders. You will need

to do a refund if you reject an order because of fraud.

• If you have to request more funds because of extra freight or a request to

add products, you have no way of doing so without asking for the

31
 customer's credit card details, even if you have approval from the

customer.

3.1.2.2 THE NEED FOR AN ALTERNATIVE SYSTEM

Having seen the problems faced by the system, it is vital to note that

Transaction processing systems are used whenever the master file

must be kept up to date. A transaction processing system operates like

thus :

• When a transaction is entered it is placed in a queue of transactions

waiting to be made. The transactions are processed in the order that they

are placed into the queue. If there are many people using the system at

the same time then there could be lots of transactions being made from

different computer terminals.

• The computer system will process one transaction at a time. Once the

system starts processing a transaction it will not process any other

transactions until the current transaction is finished. When a transaction

is processed the master file is updated immediately. Therefore the

master file is always kept up to date.

Well designed transaction processing systems will process a transaction

within a few seconds of the transaction being inputted.

32
3.1.3 THE PROPOSED SYSTEM

The proposed system is an on-line system (internet-based). The system

will be designed using Office application, MS Front Page, the HTML

codes and MS Access for the database design.

Processing is the act of doing, organising and manipulating data to

produce output. Processing is at the centre of our model of an

information system :

There are three distinct methods of processing data : batch, transaction

and real-time processing. In a computerised information system most of

the processing is carried out by a hardware device known as a

microprocessor.

3.2 SYSTEM DESIGN

33
 It is a most crucial phase in the development of a system. Normally, the

design proceeds in two stages: (i) preliminary or general design (ii)

structured or detailed design.

1. Preliminary or general design

Designing real time processing system demands a great deal of creativity

and planning.

The design phase takes the conceptual results of the analysis phase and

develops detailed, specific designs that can be implemented in subsequent

phases. It involves the detailed design of all inputs, processing, storage, and

outputs of the proposed accounting system. Inputs may be defined using

screen layout tools and application generators. Processing can be shown

through the use of flowcharts or business process maps that define the

system logic, operations, and work flow. Logical data storage designs are

identified by modeling the relationships among the organization's resources,

events, and agents through diagrams. Also, entity relationship diagram

(ERD) modeling is used to document large-scale database relationships.

Output designs are documented through the use of a variety of reporting

tools such as report writers, data extraction tools, query tools, and on-line

analytical processing tools. In addition, all aspects of the design phase can be

34
 performed with software tool sets provided by specific software

manufacturers.

In this design phase, the researcher changes focus and concentrates on how a

system can be developed to meet the requirements. Several steps are useful

during this design phase:

• Reviewing goals and objectives.

• Developing system model.

• Performing feasibility analysis

a. Review goals and objectives. The objectives of the new or revised

system were identified during system analysis and stated in the system

analysis report. Before the researcher can proceed with system design,

these objectives must be reviewed, since any system design offered must

conform to them. Apart from being a better alternative for checks, This

information payment processing is allowing millions to expand their

online payment options and customer base helping to increase potential

customers. It offers a safer and a much more reliable way to make a

significant impact in the market. Some of the objectives are seen below:

• Cost effective solutions

• Time saving processing

• Convenient and Reliable

35
• Accelerated fund availability

• No late fee needed

• No postage necessary

• Improved Cash Management

• Protection for Credit Rating

• Integrated Processing

b. Develop system model. The researcher next attempts is to represent

symbolically the system’s major components to verify his understanding of

the various components and their interactions. In reviewing the models, the

analyst refers to system theory to discover any possible omissions of

important subsystems……

-are the major interactions among subsystems shown?

-are the inputs, processes, and outputs appropriately identified?

-does the model provide for appropriate feedback to each of the

subsystems?

-are too many functions included within one subsystem?

To ensure a minimal risk of failure, we need to be aware of the various

factors that could potentially affect the success of the system. The most

effective way to gain such an awareness is by having a structured approach

to facilitate the study of these factors. This is provided by the construction

36
of a suitable development framework for the classification of relevant

issues. A development framework is "helpful in organising a complex

subject, identifying the relationships between the parts and revealing the

areas where further developments will be required" (Sprague, 1980).

As part of research done in both the academic and professional

communities, a number of frameworks and models of the AISs

development process have emerged. Few frameworks are reviewed in this

research work. The purpose of the examination of these frameworks is to

identify features useful in identifying elements of accounting information

system development and usage that influence the success of the whole

system. These features, once identified can be combined in a single

framework which will serve as the foundation for a deeper study of the

factors associated with the success of real time processing system in

accounting information system.

ESPRIT (the first frame work)

A diagram of the outline of the framework is given in the following figure

and some issues relevant to each phase, are briefly discussed below.

E S P R I T
EVALUATION SURVEY OF PROTOTYPE REVIEW IMPLEMENT TRANSFER

OF BUSINESS A CURRENT THE THE FULL THE SKILL-

CONSULTANT NEEDS REQUIREMENT BENEFITS PROJECT IN-HOUSE

Outline of the ESPRIT framework.

37
Here, the consultants undertaking the development project are committed to

carry out a joint survey to assess the AIS requirements. The suitability of the

consultancy team is then evaluated. Among the things that need to be

considered is whether the team has experience in the particular industry in

which the system is to be implemented and also a full understanding of the

criteria by which the organisation measures success.

The second phase consists of a survey and feasibility study to identify a

suitable prototype project. End-users of the system and other people affected

by the system are involved in the project. The software and hardware to be

used for the prototype are selected. It is also necessary, at this stage, to assess

availability of data. A formal proposal comprising timescales, costs, benefits

and detail of activities is then drawn up. This forms the terms of reference for

the project and the consultants should obtain authorisation to go on with the

prototype.

Once the prototype is finished it is presented to its users. This is best

done at an executive meeting. It is a way for the system to establish

credibility for itself. The presentation should focus on giving a realistic

impression of what the system will provide when it is complete.

Any data displayed should be checked to ensure accuracy relevance and

timeliness before they are used. This occasion provides an opportunity

for potential users to explore the system and ask questions about it. The

38
prototype is installed in the executive sponsor's office to demonstrate

how the sponsor will use his/her time more productively, and how

money can be made or saved when using the system.

A formal cost/benefit analysis takes place at this point. Based on this,

and in the light of experience gained so far, the full EIS proposal is

updated with full project costs and timescales set out. The proposal is

then submitted for authorisation to proceed.

It might be necessary to make changes to the prototype even to the

extent of starting all over again with a new organisation structure in

mind. New hardware may need to be acquired. The choice of software is

re-evaluated in the light of the new changes. Procedures for the

automation of collection of information are designed and implemented

incorporating extensive checks on the data for suitability. Then the

format of the reports (both paper and on-screen) delivered by the system

is designed and the AIS is ready for use by the developers at key

executive meetings.

The last phase involves the design and implementation of training

courses for the users of the system. Training of the senior executives is

then done on a one-to-one basis. The pace of the sessions is taken

slowly. Training courses for planners, analysts and the system manager

39
are also planned and implemented. Any documentation supplied with

the system, about the facilities the AIS provides, is produced in different

versions for each type of user.

The users are then interviewed and their comments about the benefits

gained from installing the system are documented in order to justify the

costs of running the AIS on a permanent basis. At this point, the next

AIS project should be identified and plans made about its

implementation which should be an easier undertaking.

A Structural AISs Framework.

The framework stems from practical experience in developing AISs, a

body of literature on AISs and discussions with AISs vendors,

consultants and AISs staff members (Watson et aI., 1991). The

framework consists of three components an outline of which is given

below.

40
 AIS

The researcher identified a number of elements associated with the

structural perspective. These elements are classified into two categories:

Personnel and Data. The first category, includes people involved in

developing an real time unit in accounting information system. The other

one makes the distinction between data internal to the organisation and data

used from outside the organisational boundaries.

The framework takes the view that AISs development is a dynamic process

that places the elements making up the structural perspective in motion.

Issues relevant to the development process form the second component of

the framework. They are included in the framework to focus attention on

41
issues relevant to activities undertaken to develop an AIS, since these

activities play an important role in the success of the final system. Issues

put forward in this component include, the development time for a system,

the development methodology used, the hardware and software used for the

system as well as issues about the evolution and spread of the system to

other members in the organisation.

The third component is the user-system dialogue. Various issues in relation

to the users of the system are addressed and classified into three categories.

The first of these, involves issues concerning the knowledge users need to

operate the system. The second category addresses issues pertinent to the

operation of the system, such as system response time and the user-system

interface. Finally, the last category looks into how information is presented

and the effect of the use of colour and multiple presentation formats. The

'user system dialogue' component is important as it incorporates the users'

perspective in the framework.

2. Structured or detailed design.

In the detailed design stage, computer oriented work begins in earnest. At

this stage, the design of the system becomes more structured. Structure

design is a blue print of AIS solution to a given problem having the

components and inter-relationship among the same components as the

42
 original problem. Input, output and processing specifications are drawn up

in detail. In the design stage, the programming language and the platform in

which the new system will run are also decided.

There are several tools and techniques used for designing. They are:

⇒ Flowchart

⇒ Data flow diagram

⇒ Data dictionary

⇒ Structured English

⇒ Decision tree.

New system is designed generally using logical models based on the

information derived from the previous stage. For the first time physical

aspects of the new system are included:

Type of system

⇒ Hardware specifications

Data organisation

⇒ Files/databases

Packages/programming

3.3 OUTPUT DESIGN:-

The output design shows how the report will actually look like and

generate the following reports:

43
(i) Confirmation report: The report shows a confirmation message

showing that the information submitted is successful.

(ii) Financial report: This report will show the total amount log in by

the user and the balance if any.

(iii) Reporting is the driving force behind an AIS development. If the

system analysis and design are successful, the reporting process

provides the information that helps drive management decision

making. Accounting systems make use of a variety of scheduled and

on-demand reports. The reports can be tabular, showing data in a

table or tables; graphic, using images to convey information in a

picture format; or matrices, to show complex relationships in

multiple dimensions.

(iv) There are numerous characteristics to consider when defining

reporting requirements. The reports must be accessible through the

system's interface. They should convey information in a proactive

manner. They must be relevant. Accuracy must be maintained.

Lastly, reports must meet the information processing (cognitive)

style of the audience they are to inform.

(v) Reports are of three basic types: A filter report that separates select

data from a database, such as a monthly check register; a

44
 responsibility report to meet the needs of a specific user, such as a

weekly sales report for a regional sales manager; a comparative

report to show period differences, percentage breakdowns and

variances between actual and budgeted expenditures. An example

would be the financial statement analytics showing the expenses

from the current year and prior year as a percentage of sales.

(vi) Screen designs and system interfaces are the primary data capture

devices of AISs and are developed through a variety of tools.

Storage is achieved through the use of normalized databases that

assure functionality and flexibility.

(vii) Business process maps and flowcharts are used to document the

operations of the systems. Modern AISs use specialized databases

and processing designed specifically for accounting operations. This

means that much of the base processing capabilities come delivered

with the accounting or enterprise software.

3.3 INPUT DESIGN:-

This report shows a type of data entry and is user friendly. To carry out

this design, label and text box is needed.

45
3.5 FILE DESIGN

The system bas only one database file. This file is made up of three tables.

Each table of the database file is designed with specific format for each field.

Input is processed against the files to produce the necessary output.

Consideration involved in the designing of these files are:

i). method of access

ii) record layout

Access mode for each of the files is random, that is records in a file can be

read or modified.

Record layout

This is the description of the structure of the records in each of the file used.

The record layout for all the two files used in the online system are given

below:

Database file

Personal data
S/N FIELD NAME DATA TYPE FIELD WIDTH
1 SURNAME TEXT 18
2 OTHER NAMES TEXT 30
3 AGE NUMBER 2
4 GENDER TEXT 6
5 MARITAL TEXT 9
STATUS
6 RESIDENTIAL MEMO -
ADDRESS
46
 7 OFFICE ADDRESS MEMO -
8 OCCUPATION TEXT 15
9 NATIONAL ID TEXT 16
CARD NO
10 SIGNATURE OLE -
11 PHOTOGRAPH OLE -

Customers’ data

S/N FIELD NAME DATA TYPE FIELD WIDTH

1 SURNAME TEXT 18
2 OTHER NAMES TEXT 30
3 GENDER TEXT 6
4 CREDIT? LOGICAL 1
5 ADDRESS TEXT 30
6 QUANTITY NUMBER 8
7 AMOUNT CURRENCY 8
8 DEPARTMENT MEMO -
9 CONTACT TEXT 19

Validation database

S/N FIELD NAME DATA TYPE FIELD WIDTH

1 IDENTIFICATION TEXT 14

NO
2 USER NAME TEXT 30
3 PASSWORD TEXT 12
4 REMARK TEXT 10

3.6 This is in-built checking facility that enables the discovery of errors in

the input data. Validation is based on the rule created through expressions.

When data fail validating, a message will display informing the user of the

error.

Example, if a field is meant for numeric value, the user mistakenly inputted the

alphabet, the system will prompt the user with the message that there is an

47
error in the input data. It also provide the user the information on how to re-

enter the data correctly.

3.7 FILE SECURITY

Access to databases is controlled by the use of passwords so that only

right user can gain access to the system . The security is placed on the

system through the use of a username and password.

CHAPTER FOUR
DESIGN METHODOLOGY AND
TECHNOLOGY

4.1 PROGRAMMING LANGUAGE

48
The design of the Internet information system was accomplished due to the

application of many technologies. The web pages was designed using MS

front Page and HTML (Hypertext Markup Language), the working program

that enables the forms to interface with the database files was designed in

visual basic programming language. The modular approach was used for the

program designs. That is, each module was designed and developed

separately and later linked together to form the coherent system.

In software, a module is a part of a program. Programs are composed of one

or more independently developed modules that are not combined until the

program is linked. A single module can contain one or several routines.

Typical characteristics of modular components include portability, which

allows them to be used in a variety of systems, and interoperability, which

allows them to function with the components of other systems.

Modular programming is the concept that similar functions should be

contained within the same unit of programming code and that separate

functions should be developed as separate units of code so that the code can

easily be maintained and reused by different programs. Various technologies

applied will be considered below:

49
(a) OVERVIEW OF HYPERTEXT MARKUP LANGUAGE

(HTML)

The Hypertext Markup Language (HTML) is a simple markup language used

to create hypertext documents that are platform independent. HTML

documents are SGML documents with generic semantics that are appropriate

for representing information from a wide range of domains. HTML markup

can represent hypertext news, mail, documentation, and hypermedia; menus

of options; database query results; simple structured documents with in-lined

graphics; and hypertext views of existing bodies of information.

HTML has been in use by the World Wide Web (WWW) global information

initiative since 1990.

HTML is an application of ISO Standard 8879:1986 Information Processing

Text and Office Systems; Standard Generalized Markup Language (SGML).

HTML defines the structure and layout of a Web document by using a variety

of tags and attributes. The correct structure for an HTML document starts with

<HTML><HEAD>(enter here what document is about)<BODY> and ends

with </BODY></HTML>. All the information you'd like to include in your

Web page fits in between the <BODY> and </BODY> tags.

50
There are hundreds of other tags used to format and layout the information in a

Web page. Tags are also used to specify hypertext links. These allow Web

developers to direct users to other Web pages with only a click of the mouse

on either an image or word(s).

HTML is a subset of a broader family of language called standard generalised

mark-up language (SGML) which is a group of languages for encoding and

formatting documents for output to a computer screen but which are generally

hidden from the user. It is essentially a set of codes used to format the

appearance of web page and to create links.

Simply put, it is a way or means of formatting information to make it suitable

for display on the WWW.

b. VISUAL BASIC

Visual Basic, which is used for the form design and to interface the data entry

form to the database files is a programming language suitable for all forms of

computer applications- numerical, scientific, graphical, database, commercial

programming. It is an object oriented programming (OOP) language which

has more advantages than its procedural language counterpart. It is quite

flexible and effective in database manipulations, accessing and retrieval of

information, etc.

51
Object-oriented programming (OOP) is a programming language model

organized around "objects" rather than "actions" and data rather than logic.

Historically, a program has been viewed as a logical procedure that takes

input data, processes it, and produces output data. The programming

challenge was seen as how to write the logic, not how to define the data.

Object-oriented programming takes the view that what we really care about

are the objects we want to manipulate rather than the logic required to

manipulate them. Examples of objects range from human beings (described

by name, address, and so forth) to buildings and floors (whose properties can

be described and managed) down to the little widgets on your computer

desktop (such as buttons and scroll bars).

The first step in OOP is to identify all the objects you want to manipulate and

how they relate to each other, an exercise often known as data modeling.

Once you've identified an object, you generalize it as a class of objects (think

of Plato's concept of the "ideal" chair that stands for all chairs) and define the

kind of data it contains and any logic sequences that can manipulate it. Each

distinct logic sequence is known as a method. A real instance of a class is

called (no surprise here) an "object" or, in some environments, an "instance of

a class." The object or class instance is what you run in the computer. Its

methods provide computer instructions and the class object characteristics

52
provide relevant data. You communicate with objects - and they communicate

with each other - with well-defined interfaces called messages.

The concepts and rules used in object-oriented programming provide these

important benefits:

• The concept of a data class makes it possible to define subclasses of data

objects that share some or all of the main class characteristics. Called

inheritance, this property of OOP forces a more thorough data analysis,

reduces development time, and ensures more accurate coding.

• Since a class defines only the data it needs to be concerned with, when

an instance of that class (an object) is run, the code will not be able to

accidentally access other program data. This characteristic of data hiding

provides greater system security and avoids unintended data corruption.

• The definition of a class is reusable not only by the program for which it

is initially created but also by other object-oriented programs (and, for this

reason, can be more easily distributed for use in networks).

• The concept of data classes allows a programmer to create any new data

type that is not already defined in the language itself.

4.2 OBJECTS AND PROPERTIES

53
Your web page document is an object. Any table, form, button, image, or link

on your page is also an object. Each object has certain properties (information

about the object.) for example, the background colour of the document is

written….document.bgcolor. you could change the color of your page to red

by writing the line: document.bgcolor=’’red”

The contents (or value) of a texbox named ‘password’ in a form named ‘entry

form is document.entryform. Passsword.Value.

4.3 METHODS

Most objects have a certain collection of things that they can do. Different

objects can do different things, just as a door can open and close while a light a

can turn on and off. A new document is opened with the method document.

Open () you can write ‘Hello World’ into a document by typing document.

Write (Hello World’). Open () and write () are both methods of the object:

document.

4.4 EVENTS

Event are how we trigger our functions to run. The easiest example is a button,

whose definition includes the words on click=’’run_my_function ()’’.

54
The onClick event, as its name implies, will run the function when the user

clicks on the button. Other events include. On Mouse Over, OnMouseOut,

OnFocus, OnBlur, Onload, and OnUnload.

4.5 INTERNET INFORMATION SERVICE

Internet Information Services (IIS) - formerly called Internet Information

Server - is a set of Internet-based services for servers created by Microsoft for

use with Microsoft Windows. It is the world's second most popular web server

in terms of overall websites behind the industry leader Apache HTTP Server.

The services provided currently include FTP, FTPS, SMTP, NNTP, and

HTTP/HTTPS.

1.6 INFORMATION SYSTEMS DEVELOPMENT METHODOLOGY

Information systems development methodology or ISDM is a tool kit of ideas,

approaches, techniques and tools which system analysts use to help them

translate organisational needs into appropriate Information Systems;

An ISDM is:-

'....recommended collection of philosophies, phases, procedures, rules,

techniques, tools, documentation, management, and training for developers of

Information Systems”. (Avison and Fitzgerald, 1988)

55
 CHAPTER FIVE
IMPLEMENTATION, CONCLUSION
AND RECOMMENDATION.

5.1 IMPLEMENTATION

Implementation The implementation phase consists of two primary parts:

construction and delivery. Construction includes the selection of hardware,

software and vendors for the implementation; building and testing the

network communication systems; building and testing the databases; writing

and testing the new program modifications; and installing and testing the total

system from a technical standpoint. Delivery is the process of conducting

final system and user acceptance testing; preparing the conversion plan;

installing the production database; training the users; and converting all

operations to the new system.

Tool sets are a variety of application development aids that are vendor-

specific and used for customization of delivered systems. They allow the

addition of fields and tables to the database, along with ability to create screen

and other interfaces for data capture. In addition, they help set accessibility

and security levels for adequate internal control within the accounting

applications.

56
Security exists in several forms. Physical security of the system must be

addressed. In typical AISs the equipment is located in a locked room with

access granted only to technicians. Software access controls are set at several

levels, depending on the size of the AIS. The first level of security occurs at

the network level, which protects the organization's communication systems.

Next is the operating system level security, which protects the computing

environment. Then, database security is enabled to protect organizational data

from theft, corruption, or other forms of damage. Lastly, application security

is used to keep unauthorized persons from performing operations within the

AIS.

The support phase has two objectives. The first is to update and maintain the

AIS. This includes fixing problems and updating the system for business and

environmental changes. For example, changes in generally accepted

accounting principles (GAAP) or tax laws might necessitate changes to

conversion or reference tables used for financial reporting. The second

objective of support is to continue development by continuously improving

the business through adjustments to the AIS caused by business and

environmental changes. These changes might result in future problems, new

opportunities, or management or governmental directives requiring additional

system modifications.

57
Implementation is the stage of a project during which theory is turned into

practice. During this phase, all the programs of the system are loaded onto

user’s computer. For effective implementation to be carried out, the following

will be required:

i) hardware and software requirement

ii) system modification

iii) system testing

iv) change over technique

Hardware and software requirement

Hardware

When talking about hardware for an AIS environment, we should focus on the

hardware that meet the executive’s needs. The executive must be put first and

the executive’s needs must be defined before the hardware can be selected.

The basic computer hardware needed for a typical AIS includes four

components:

1. Input data-entry devices. These devices allow the executive to enter,

verify, and update data immediately;

2. The central processing unit (CPU), which is the kernel because it

controls the other computer system components;

58
 3. Data storage files. The executive can use this part to save useful

business information, and this part also help the executive to search

historical business information easily;

4. Output devices, which provide a visual or permanent record for the

executive to save or read. This device refers to the visual output device or

printer.

In addition, with the advent of local area networks (LAN), several AIS

products for networked workstations became available. These systems require

less support and less expensive computer hardware. They also increase access

of the AIS information to many more users within a company.

Software

Choosing the appropriate software is vital to design an effective AIS.

Therefore, the software components and how they integrate the data into one

system are very important. The basic software needed for a typical AIS

includes four components:

1. Text base software. The most common form of text is probably

documents;

59
2. Database. Heterogeneous databases residing on a range of vendor-

specific and open computer platforms help executives access both internal and

external data;

3. Graphic base. Graphics can turn volumes of text and statistics into
visual information for executives. Typical graphic types are: time

series charts, scatter diagrams, maps, motion graphics, sequence

charts, and comparison-oriented graphs (i.e., bar charts);

4. Model base. The AIS models contain routine and special

statistical, financial, and other quantitative analysis.

Perhaps a more difficult problem for executives is choosing from a

range of highly technical software packages. Ease of use,

responsiveness to executives' requests, and price are all reasonable

considerations. Further, it should be considered whether the package

can run on existing hardware.

5.2 SYSTEM MODIFICATION

Pre-installation modification. User department personnel may request a

modification to the potential design of the system for a number of reasons.

The design may, for instance, create a number of previously unforeseen

problems or fail to resolve existing ones. This situation may be discovered

during prototyping, i.e. when running a model of the system to assess if it

60
will achieve stipulated objectives. Such requests can be accepted after

discussions between management, operating department (user) personnel

and systems staff. This will necessitate a modification to the relevant

systems documentation to ensure it accords to the system eventually

implemented. A record of the modification should be promulgated, i.e.

committed to a formal record indicating:

a. authority for the request;

b. date of request;

c. system or sub-system in question;

d. terms of reference indicating the reason for the request;

e. agreed course of action

Post-implementation. This can be very costly, time-consuming and

disruptive. Inferior system design should be avoided at all costs which is

why defined checkpoints should be incorporated at various stages of

development. A system will need updating due to technological and

economic developments and the passage of time.

File conversion and take-on of opening balances

Many computer-based systems are of an accounting nature necessitating the

conversion of files to magnetic media and the transfer of opening balances

to the computer files. The time it takes to accomplish this task requires

61
 careful planning and control. The Longer the transfer takes the more

difficult it becomes to catch up personnel attempt to run both the current

and the computer system on a disjointed basis. Catch-up must be given

priority while maintaining the current system in an up to-date condition.

Very often record are converted from ledger cards on which transaction

details are recorded by hand or posting machine to magnetic media by

suitable encoding methods. Before conversion it is essential that the

balances on such record as tax record, payroll records of each tax payer are

reconciled to ensure only correct balances are transferred to the new

system. This creates a high volume activity and suitable arrangements must

be made sufficiently in advance to avoid unnecessary take-on delay

5.3 SYSTEM TESTING

Testing is performed at four levels. Stub or unit testing is used to insure the

proper operation of individual modifications. Program testing involves the

interaction between the individual modification and the program it enhances.

System testing is used to determine that the program modifications work

within the AIS as a whole. Acceptance testing ensures that the modifications

meet user expectations and that the entire AIS performs as designed.

62
Prior to the installation of the computerised system test data must be prepared

for live testing. It is also necessary to simulate the operation of the computer

application before it is installed, to detect any bugs. This is accomplished by

desk checking or dry running, which involves running through the program

coding, as the computer would do when processing actual data.

5.4 CHANGE OVER TECHNIQUE

This entails the method used to change from an old AIS to a new AIS. There

are several methods for achieving this goal. One is to run the new and old

systems in parallel for a specified period. A second method is to directly cut

over to the new system at a specified point. A third is to phase in the system,

either by location or system function. A fourth is to pilot the new system at a

specific site before converting the rest of the organization

The method of system changeover is outlined below to illustrate the

characteristics, which need to be taken into account during the planning stage

of installation.

(a) pilot scheme change over

Nature of a pilot scheme. This method of system changeover adopts a

cautious approach. Resources are not committed to a state-wide

implementation and the installation of a system is restricted to one location

63
only The results obtained from running this pilot scheme assist in determining

the suitability of the system for other locations.

When to use a pilot scheme. A pilot scheme should be adopted when the

system under consideration has far-reaching consequences on the efficient

performance of key activities on a wide scale throughout the “business”.

5.5 CONCLUSION.

Real time processing in accounting information system, when properly

examined pose a great challenge to existing manual system with the

consideration of the following facts that.. production of the desired

information, at the right time, in the right amount, with an acceptable level of

accuracy and in the form required at an economical cost;

incorporation of checks and controls which are capable of detection and

dealing with exceptional circumstances and errors; effective safeguards for the

prevention of fraud; efficient security measures in order to avoid loss of data

stored in master file; efficient design of document and reports will make the

business to achieve it goal.

64
5.6 RECOMMENDATION

As soon as the accounting information system becomes operational, it is

recommended that the following should be considered:

System monitoring. After the system has gone live and proved to be

performing satisfactory, it is still necessary to monitor the system to ensure

that no abnormalities occur and to remove the cause if any arise. It may be

found that, although the system is achieving results as stipulated in the system

specification, the system design does not provide for certain requirements.

This situation will, of course, require system modification, which will

necessitate program recoding, recompiling and retesting.

System maintenance. Systems in their original form often outlive their

usefulness because of the need to change business practices in accordance with

changing economic circumstances and the introduction of new legislation. In

addition, systems may be implemented initially on a stand-alone functional

basis and management may later consider it a practical proposition to integrate

related systems to avoid the input of data several times to each of several

systems for different purposes.

Retraining personnel. When manual systems are superseded by computerised

applications there is a need to retrain existing personnel or recruit personnel

65
from external sources for the new types of task which have been created.

Before training can commence, it is necessary to select suitable personnel with

the required aptitude and potential for specified tasks. The cost and benefits

will be compared to know if it has met its objectives.

66