Objectives of the General Ledger System
1. To record all accounting transactions
promptly and accurately.
2. To post these transactions to the proper
account.
3. To maintain an equality of debit and
credit balances among the accounts.
4. To accommodate needed adjusting
entries.
5. To generate reliable and timely financial
reports pertaining to each accounting
period.
Functions of the General Ledger System
1. Collect transaction data.
2. Classify and code transaction data and
accounts.
3. Validate collected transactions.
4. Update general ledger transaction
accounts and transaction files.
5. Record adjustment to accounts.
6. Prepare financial reports.
General Ledger System Architecture
Chart of accounts
 a coded listing of the accounts.
o Assets
o Liabilities
o Equity
o Revenue
o Expenses
Types of Transactions posted to the General
Ledger
1. Adjusting Entries
o Accruals
o Deferrals
o Revaluation
o Correction (see #4)
2. Reversing Entries
3. Closing Entries
4. Entries recorded at source. (from
different transaction cycles)
Structure of the Course
Infotech 1
Principles of systems analysis and design
Infotech 2
Accounting information systems and
application of the principles of systems analysis and
design.
Infotech 3
Auditing accounting information systems.
System Analysis
 The detailed investigation of
business or information system.
 It is the scientific study of the
systems process, including
investigation of inputs and outputs
in order to find better, economical
and more efficient means of
processing.
The System Development Life Cycle
Planning Phase
 The analyst recognize, diagnose and
define the problem.
Analysis Phase
 The analyst reviews the in-place
system.
Design Phase
 The analyst puts down on paper the
elements of a new or improved
system.
Development Phase
 The new system is actually built.
Implementation Phase
 Changeover to the newer improved
system.
For each phase of the SDLC, there is one or more
deliverable called work product or work output.
Work Product or Work Output
 It is a finite, measurable amount of
work also known as milestone that
mark a completion of a phase.
Design Guidelines
Modular structure following the top-down approach:
 Develop system in segment,
dividing the tasks into smaller more
manageable parts.
  For example, the AIS can be 4. Financial Scope
developed in modules based on the  Cost benefit analysis.
transaction processing cycles. i. Cost pertain to all
Modular Structure Accounting Information System the expenses
 Expenditure Cycle incurred during the
 Revenue Cycle SDLC e.g salaries
 Conversion Cycle of project team,
 General Ledger Cycle installation of
 Sales Cycle equipment, etc., this
 A/R Cycle should be
These self-contained modules should call in others quantified.
to eliminate redundant efforts. Planning Recommendation
Modular Approach Temporal Scope
Transaction Processing Cycles  Time is of the essence.
 Expenditure Cycle Financial Scope
 Revenue Cycle  Excessive cost to implement
 Conversion Cycle Degree of Importance
 General Ledger and Financial  Business planning
Reporting Cycle  Nice to have
PLANNING PHASE Final Recommendation
Preliminary Planning and Investigation  Proceed immediately
Deliverable  Defer implementation until
 The project plan or the project charter. assertions and other factors change.
o Problem Definition Summary of Deliverables
 Statement of the problem or 1. Planning Phase
objectives, general and specific. a. Statement of the Objective
 Scope i. Specific Objective
 Recommendation to: ii. Specific Objective
 Proceed, defer, discontinue. b. Scope
Scope i. Logical Scope
1. Logical Scope ii. Temporal Scope
 Defines what is included in iii. Organizational Scope
the project. Where it starts iv. Financial Scope
and where it ends. 2. Analysis Phase
a. Systems requirement
2. Temporal Scope i. Hardware / Software
 Time line, when it starts and ii. End user requirements
when it ends. DELIVERABLE SPECIFIC TO THE PROJECT
 Gantt chart is used. A. INPUT
3. Organizational Scope  Name of Input
 The structure of the project  Source
team. o Who prepares?
 The structure of the end o Where prepared?
users.  What is the input medium?
Input – what is needed to produce the output.
OUTPUT
 Name of output
 Purpose
 User
 Output media (softcopy or hardcopy)
 Frequency of output
Output - should contribute to the achievement of the
objectives.
B. Master Files (Transaction Files – Database)
i. Name of file
ii. Used for?
iii. Content
1. Columns
Analysis Phase
 Review and detailed investigation of
the system to understand what is
needed and what needs to be
improved.
 Assess information and data
requirements.
 Conducting work samples, time
studies and interviews.
 Analyzing documents.