Data Encoding in Accounting Systems
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ScribdTranslationsData Encoding in Accounting Systems
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ScribdTranslations(UASD)
Regional University Center of Nagua
discomfort
Subject:
Accounting
Subject:
Data Encoding
Supported by: Enrollment:
Leocadia De Jesús Paredes CF-0851
Section:
N-1
Presented to:
Professor Juan Guzmán
Delivery Date:
May 21, 2013
Nagua Province María Trinidad Sánchez Dominican Republic
Introduction
Research is an essential means and of great importance for obtaining
any kind of information..
In this work on data encoding, we will have the opportunity to put in
practice the concepts and methods learned. In order to know and understand how to
employs in each bank or financial institution where each one of us could work
In the future, what are its advantages and disadvantages.
The first objective of this chapter is to study the different coding systems.
existing and expand it to accounting and financial operations in order to meet the
intention for the work to be concise and practical at the same time so that the student is capable
to understand the concepts presented below.
DATA CODING
The automation of accounting operations requires that a company's accountant
define in advance the encoding method to be used by each of the systems
accounting administrative systems that will be implemented in the company.
DATA CODING
Factors to consider for the selection of a certain coding method:
The chosen system must meet the processing requirements.
information.
Predict whether the codes will be processed manually or through a computer.
BASIC CHARACTERISTICS OF A CODING SYSTEM
Every coding system must have a series of minimal characteristics in order to
has been adopted as a processing method for information. Within those
we have characteristics:
A. Code Accuracy
B. Flexibility
C. Concise
D. Significant
E. Operability
CODE PRECISION
Each element must accept a correct encoding
Each person who opens a checking account in a bank must be assigned only one.
Código Correcto 013-22481-CA Juan García 013-22482-CC Carlos Hernández
Incorrect
013-22482-CA Carlos Hernández 013-22482-CA Ronald Balmore
FLEXIBILITY
It should allow for the acceptance of more elements if necessary.
Example. Structure of the Correct Accounting Code
Accounts Receivable Agricultural Bank
Accounts Receivable Banco Cuscatlán Incorrect 1-01-01-1 Accounts Receivable
Agricultural Bank 1-01-01-2 Accounts Receivable Cuscatlán Bank
CONCISE
Codes that are not relevant for identifying a given element should not be added.
For example. The characters at the end of a Correct code
FC-32458 Invoice from Supplier A
FC-96749 Invoice from Supplier X
Incorrect FC-32458-P.D. Invoice from Supplier A FC-96749-W Invoice from Supplier X
SIGNIFICANT
Each element must indicate some differential characteristic of the coding.
Yes. Correct
CM-32458 Accounts Payable of Customer M
CA-96749 Accounts Payable of Customer W
Incorrect32458 Accounts payable of client M 96749 Accounts payable of client W
OPERABILITY
It should facilitate the management of the codes by a computer system.
Yes. Correct
1-01-01-001 Accounts Receivable Agricultural Bank
1-01-01-002 Accounts Receivable Bank Cuscatlán Incorrect 1-01-A235 Accounts for
Collect Agricultural Bank 1-01-W531 Accounts Receivable Cuscatlán Bank
CODING SYSTEMS
The systems are the following:
A. Sequential
B. By blocks
C. By group
D. Alphanumeric
E. Mnemonic
With Verification Digit
G. Of consonants
H. Phonetic
I. Of Bars
SEQUENTIAL
It consists of the consecutive assignment of a number to a list of elements starting from a
default number. Advantage: Useful in short lists Disadvantage: Cannot be formed
groups to classify elements. Example: Code 001 002 Element Name Accounts
to be collected Laura Díaz Accounts receivable Miriam Flores
BY BLOCKS
It represents a derivation of the sequential since under this method codes are assigned
sequentially, but in blocks of consecutive digits that identify some
Characteristic of the element to be encoded. Advantage: Useful in short lists Disadvantage: Can
flexibility problems arise
Ejemplo: Código 01 02 Nombre del elemento Televisor 12 pulgadas Televisor 16 pulgadas
Explanation 01 to 06 Televisions
07 12 Blender 2 speeds Blender 12 speeds 07 to 12 Blenders
BY GROUP
It consists of the assignment of a code divided into successive classifications that
they cover an increasing number of positions, and serve to identify a group of
homogeneous functions or characteristics.
Advantage: Ease of expansion, speed in data processing
Disadvantage: If not defined properly, it may present scalability issues.
and confusion in its use.
Code 2-000-000-000 2-001-000-000 2-001-001-000 Liability Non-current liability
Accounts Payable Suppliers Item Name
ALPHABETICAL NUMERIC
An alphabetical code is assigned taking into account the name of the element on the list and a
numeric encoding, which takes into account the other characteristics of the elements of the
list.
Advantage: Useful in short lists
Disadvantage: Expandability issues may arise
Example: Car Plates XEH-301 LVA-203 VEC-100
mnemonic
Make a combination of numbers and letters to identify by various characteristics.
each of the elements.
Advantage: Extremely useful when the items to be handled are numerous.
Desventaja:Ejemplo: Código PFDCF750 PFTCF800 Nombre del elemento Pastillas de
front brake truck Ford 750 rear brake pads truck Ford 800 The
Coding the items can be cumbersome and complex.
WITH CHECK DIGIT
It consists of adding a number or letter to a sequence of characters based on a
predefined and calculated algorithm, by the computer, in order to ensure the validity of the
data that enters the system. It arises from the problems that can occur in the
data entry
María Reyes
It is absolutely safe to validate the information. Ignorance by
many people from the area.
OF CONSONANTS
It consists of removing all the vowels after the first letter of the word. No one
Debe suprimir la primera letra, sea esta una consonante o una vocal.
Ease of application Limited use, requires knowledge of the method
Ejemplo:Código PRZ Nombre del elemento Pérez
ALFR
Alfaro
PHONETIC
Encode the names of the elements according to their sound. It must be maintained the
first letter of the word, whether vowel or consonant. Advantage: Disadvantage: Useful for a
Alphabetical search of a list. Applicable to very specific situations.
Step 1: Remove all vowels and the consonants W, Y, and H.
Step 2: The rest of the letters are encoded according to the following table: Change
for When 1 BFPV 2 CGJKQSXZ 3 DT 4 L 5 MN 6 R appears
Step 3: If the field assigned for phonetic encoding is not sufficient
occupied by the numbers that represent the consonants, it is filled with zeroes the
posiciones no ocupadas Código J5250 J5235 Nombre del elemento Jhonson
Jhonstone
OF BARS
It consists of the assignment of lines and spaces of different widths that are printed on
a product.
Advantage:
Disadvantage:
It allows for easy control over all inventories of mass products.
a company.
Lack of knowledge in its application
Conclusion
An accounting code is the result of the systematization of accounting operations and the
spine around which all operations and transactions rotate
A accounting code must be reliable, appropriately classified, and hierarchical.
The description of the accounts must be clear in order to avoid confusion in them.
This work highlights the importance of coding methods for the
Processing of the transactions and operations that a company can handle.
Encoded systems identify using symbols such as letters and/or numbers,
elements of a set or subset and relate them to other elements of the same
set or subset.