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Operational Level Management

Operational Level Management is concerned with routine business transactions and, thus, requires Transaction Processing System (TPS). TPS performs the function of recording daily transactions that are essential for conducting the business. TPS is used in a number of applications. Some of the applications where TPS is used are Order and Payroll processing and Automated Teller Machines (ATM).

Management - Management performs the function of planning, controlling and decision - making and, therefore, requires the support of Management Information System (MIS) and Decision Support System (DSS). MIS comprises of exception reports and summary reports, compared with the plans. DSS refers to the system whereby the reports received from different departments are consolidated and analyzed for decision - making.

Strategic Level Management - Strategic Level Management is concerned with the overall policy - making and strategic planning. It is supported by the Executive Support System (ESS) which presents the reports to the management after analyzing them with the help of advance level softwares, such as trend analysers, etc.

We shall restrict our discussions to Transaction Processing System (TPS).

TPS refers to the system which processes the transactions of an organization. The processes involved are -
  1. Data Collection - Data collection refers to data collection which may be by manual input, sale machines, scanners etc.
  2. Data Edit - Data editing refers to checking the data for correctness.
  3. Data Validation - Data validation refers to verification of data and, if any error is detected, rectification thereof.
  4. Data Manipulation - Data manipulation refers to processing and analyzing the data on a pre-set design.
  5. Data Storage - Data storage refers to the process of storing data in the database.
  6. Report Generation - Report generation refers to generating the reports in a pre-designed format as a hardcopy or softcopy.
  7. Query Support - Query support refers to the process whereby the user of TPS can raise a query and extract the data to get report.
An accounting information system (AIS) is a system of records maintained by a business for its accounting systems and includes collecting, processing, summarizing and reporting in money terms. The purpose of AIS is to accumulate data and provide information to decision makers (investors, creditors, and managers) for the purpose of decision - making. Therefore, we can say that an Accounting Information System (AIS) processes the collected data, transforms it into information and makes the information available to the user.

AIS, being the information system based on transactions, meet the requirements of the organization with respect to accounting reports. These reports may be categorized into-
  1. Internal Reports i.e., reports for the use of management and
  2. External Reports i.e., reports generated for the outside agencies for the purpose of filing returns such as VAT, Service Tax and Income Tax.

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