The process of designing a database for accounting is described below:
1. Reality:
It refers to some aspect of real world situation, for which database is to be designed. In the case of accounting, it is accounting reality that is to be expressed with complete description.
2. ER Design:
This is formal blue print, a pictorial presentation, in which Entity Relations Model concepts are used to represent description of reality.
3. Relational Data Model:
It represents a collection of related data values and hence typically corresponds to real world entity or relationship. It consists of rows and columns.
The table name and column name are used to help in interpreting the meaning of volumes of each rows. Each row of a table is called a data record. All values in a column, which belongs to a particular domain, are of same data type.
4. Normalisation:
This is the process of refining a database design through which the possibility of duplicate or redundant data items is reduced or eliminated.
5. Refinement:
This is the outcome of the process of normalisation. The final database design is arrived at after the process of normalisation is completed. The following chart showing the process of designing a Database for Accounting:
