This document discusses the 3-tier architecture of accounting applications. It explains that the 3 tiers are: 1) Maintain - Setting up the chart of accounts and basic account information. This provides the framework for the accounting software. 2) Transaction - Entering purchase, expense, sales, and receipt transactions along with journal entries. 3) Reports - Generating financial reports on the business such as the balance sheet, aging reports, and other analyses once transactions are recorded. Understanding and properly setting up the 3 tiers, especially the chart of accounts, ensures accurate accounting records and reporting.

1. By Haider Ali
e.tallypakistan.com
Understanding 3 tier architecture of accounting applications
(Conceptual Framework)

2. Accounting Application/Software
• Before we start understandin 3tier of accounting application it
seems important what accounting application is and how it
works.
• Generally we say that Accounting software is an application that
breaks and synthesizes accounting transactions into stages or
steps that works within the main system. To be more specific
Accounting software is an application software that records and
processes accounting transactions within funcational modules. It
funcations as an accounting information system and composed of
various modules

3. Accounting Application/Software
• Accounting software works in two main ways.
• One is by using three ledger book. This ledger has three areas of
record i.e sales ledger, purchase ledger and general ledger.
• The second way is by using the chart of accounts. This is where all
the transactional data is entered into its individual account using
the account codes. This chart of accounts allows the categorizing
the accounts for easy work.

4. Accounting Application/Software
• Accounting software works in two main ways.
• One is by using three ledger book. This ledger has three areas of
record i.e sales ledger, purchase ledger and general ledger.
• The second way is by using the chart of accounts. This is where all
the transactional data is entered into its individual account using
the account codes. This chart of accounts allows the categorizing
the accounts for easy work.

5. 3tier
• What is 3tier
It is conceptual frame work to help students better
understanding of accounting softwares. Regardless of which
accounting software are you using, 3tier will help you work
within it efficiently. 3tier describes how accounting softwares
understand your commands and how you should start
working even in a new accounting software. Basically there
are 3 steps to work in an accounting software

6. 3tier
• Maintain
• Transaction
• Reports

7. 3tier
• Maintain:- As stated in the begening that accounting sofware
works in two ways one of them was chart of accounts. Simply
buying an accounting software is not enough the more work
is just starting by. Accounting software follow the instructions
you have given it. We commond accounting software by
inserting basic informations by way of creating chart of
accounts. Chart of accounts is a listing of all your accounts
used within your accounting system. It mean you have insert
following informations correctly.
• Checking accounts/Cash/Bank accounts

8. 3tier
• Sales or Income accounts
• Expenses accounts
• Cost of sale accounts
• Assets accounts
• Liabilities accounts
• Vendor accounts
• Customers accounts
• Inventory list
• Other list

9. 3tier
• Once you have completed your maitain task, you have done
major part of you job. All your reports are outcome based on
your maintain task by creating chart of accounts, creating
vendor, creating customer and list. If you have creating
incomplete or unappropriate chart of accounts by selecting
wrong account heads, then you will get wrong statements so
understanding and creating correct chart of accounts is a
must.

10. 3tier
• Transaction:- Second step is to enter transactions in the
accounting software. You must have well aware of entering
transaction. You should know where to enter purchase and
expense transactions and where to enter sales and receipt
transactions and how to enter journal entries.
• Report:- You have done your job well, now what to do?
Ofcourse to get the reports of your business transactions.
Reports may be of your financial position or of your
managerial performance it could by your Balance sheet or
your aging report of your payables.

11. e.tallypakistan.com
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