Coding System Is 423 3 a 1 Coding

Coding System Is 423 ชดท 3 a 1

Coding Systems for Transaction Processing • A coding system consists of a character set; that is, a set of admissible predefined symbols that are used to identify the object of interest. • What are the two purposes of a code? 1 It provides a brief identification. 2 It gives meaning to data in subsequent processing. Is 423 ชดท 3 a 2

Coding Systems for Transaction Processing • – – – • What are some examples of codes? numeric codes alphanumeric codes machine-readable codes The universal product code is an example of a bar code. Is 423 ชดท 3 a 3

Coding Systems • Mnemonic Codes give visible clues concerning the objects they represent • Sequence Codes are the simplest type of coding scheme that assign numbers or letters in consecutive order • Block Codes assign a series of numbers within a sequence to entities or events having common features • Group Codes reveal two or more dimensions or facets pertaining to an object Is 423 ชดท 3 a 4

Coding Examples in Accounting Systems • Codes are widely used in accounting systems. • What are two common examples? 1 Customer coding 2 Chart of accounts Is 423 ชดท 3 a 5

Design Considerations in Coding • Codes should serve some useful purpose • Codes should be consistent • Codes should be standardized throughout the organization • Codes should plan for future expansion Is 423 ชดท 3 a 6

Coding Examples in Accounting Systems Typical Account Coding Structure XX XX Subunit Classification Natural Account Classification Activity Suffix Is 423 ชดท 3 a 7

Coding Examples in Accounting Systems Typical Account Coding Structure X X X Detailed account classification Financial statement classification Major account classification Is 423 ชดท 3 a 8

Coding Examples in Accounting Systems Typical Account Coding Structure 111 Checking account – bank Cash Asset Is 423 ชดท 3 a 9