Data Coding Schemes

Allows for the insertion of new codes

within a block without having to
reorganize the entire coding

A System without Codes

Uncoded entry takes a great deal of

recording space.
Time consuming to record.
Prone to many types of errors.

the more items that can be

represented.
Disadvantages:

A System with Codes

Concisely represent large amounts of

be unmanageable.
Provide a means of accountability over the

completeness of the transactions

processed.
Identify unique transactions and accounts

within a file.
Support the audit function by providing an

Group Codes used to represent complex

items or events involving two or more
pieces of related data. Also consists of
zones or fields that possess specific
meaning.

effective audit trail.

Information content of the block

code is not readily apparent.

complex information that would otherwise

structure.
The more digits in the code range,

Advantages:

Numeric and Alphabetic Coding Schemes

Sequential Codes represent items in

Facilitate the representation of large

amounts of diverse data.

Allow complex data structures to be

some sequential order (ascending or

represented in a hierarchical form

descending).
Advantages:
Supports the reconciliation of a

that is logical and more easily

batch of transactions at the end of

reporting both within an item class

processing.
Disadvantages:

and across different classes of

items.

Carry no information content beyond

Disadvantages:

their order in the sequence

remembered by humans.
Permit detailed analysis and

(attributes of the item, etc.).

Difficult to change.

Unrelated data may be linked simply,

leading to unnecessarily complex
group codes that cannot be easily

Block Codes can be used to represent

whole classes of items by restricting each

promote clerical errors, and increase

class to a specific range within the coding

processing time and effort.

scheme.
Advantages:

interpreted.
Overuse can increase storage costs,

Alphabetic Codes used for many of the

same purposes as numeric codes.

Alphabetic characters may be assigned

sequentially (in alphabetical order) or may

be used in block and group coding
techniques.
Advantages:
Capacity to represent large numbers
of items is increased dramatically
through the use of pure alphabetic

records that are coded alphabetically

.

Mnemonic Codes alphabetic characters

in the form of acronyms and other
combinations that convey meaning.
Advantages:
Does not require the user to
memorize meaning.

codes or alphabetic characters

embedded within numeric codes
(alphanumeric codes).
Disadvantages:

There is difficulty rationalizing the

meaning of codes that have been
sequentially assigned.

Users tend to have difficulty sorting

Disadvantages:

Have limited ability to represent

items within a class.