Accounting information systems 12th SIMKIN and norman chapter 15

Chapter 15:Accounting and Enterprise Software Introduction Integrated Accounting Software Enterprise-Wide Information Systems Selecting a Software Package... Advances in Accounting Soft

Chapter 15:

Accounting and Enterprise Software

Introduction

Integrated Accounting Software

Enterprise-Wide Information Systems

Selecting a Software Package

Advances in Accounting Software

 Initially processed bookkeeping transactions

 Developed into powerful and complex data

collection programs

Enterprise Resource Planning Systems (ERP)

 Provide all accounting functions

 Interfaced with multiple functional areas of

business

Integrated Accounting

Software

Function

 Process all types of accounting transactions

 Transactions affecting general and special journals

Modules

 Organizes transaction processing in modules

 Provides links between modules

 Include Accounts Receivable, Accounts Payable,

Inventory, and Payroll

Features of Integrated Accounting Software Programs

Information Needs of Small Business Owners

 Owners must still learn the various features of the

Small Business Accounting

Software

 Transaction processing needs grow

 Volume and complexity

Popular Software Packages

 Various modules and interfaces (CRM, HR)

 Deployment options (desktop, web-browser)

Midrange and Large-Scale

Accounting Software

Midrange Accounting

Software Integration

Specially designed software for specific industries

 Schools, Dental Offices, Pet Retailers

Can be designed as add-on modules for integrated

software packages

Independent developers create programs to

interface with integrated packages

Specialized Accounting Information Systems

Which of the following accounting software programs would

be appropriate for a small business (e.g., a sole proprietorship with 20 employees)?

Which of the following accounting software programs would

be appropriate for a small business (e.g., a sole proprietorship with 20 employees)?

Mid-level accounting software:

A.Can only be deployed through a server networked with

desktop computers

B.May be purchased in modules that match various business processes

C.Will not be appropriate for a multinational company

because these programs cannot handle foreign currencies

Study Break #2

Mid-level accounting software:

A.Can only be deployed through a server networked with

desktop computers

B.May be purchased in modules that match various business processes

C.Will not be appropriate for a multinational company

because these programs cannot handle foreign currencies

D.Is generally inappropriate for a company operating in a

Study Break #2 - Answer

Enterprise Resource Planning Systems (ERP)

 Enterprise software and Business application suites

 Integrated program with central database

Enterprise System

Functionality

Basic ERP Functions

 Integration among major business processes

 Order processing and Fulfillment, Manufacturing,

Purchasing, and Human Resources

Extended ERP Systems

 Back-office functions

 Front-office functions

Extended ERP Systems

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Business Intelligence Tools (BI)

Partnership Relationship Management (PRM)

ERP System Integration

Supply Chain Example

The Architecture of

Enterprise Systems

The Architecture of Enterprise Systems

Systems Configurations

 Often run on company’s system

 Hosted solutions help alleviate risks

Centralized Database

 Each data item stored once

 Prevents data redundancy

 Data immediately available to all business functions

The Architecture of Enterprise Systems

Application Interfaces

 Best-of-breed approach

 Enterprise application integration(EAI)

Internet Portals

 Gateways to other web sites

 Enhances communication and productivity among

employees, customers, partners, and suppliers

Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system?

A.Must be a hosted solution

B.Multiple databases

C.Integration of business functions

D.Low cost

Study Break #3

Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system?

A.Must be a hosted solution

Components of an ERP’s architecture typically include:

A.A centralized database and application interfaces

B.Internet portals and multiple databases

C.A centralized database running on a mainframe computer D.Business intelligence and multiple databases

Study Break #4

Components of an ERP’s architecture typically include:

A.A centralized database and application interfaces

B.Internet portals and multiple databases

C.A centralized database running on a mainframe computer D.Business intelligence and multiple databases

Study Break #4 - Answer

ERP Integration

 Entails reengineering an organization

 Encourage conformity with best practices

BPR Success

 Planning

 High-level review of process

Business Process Reengineering and ERPs

Key Aspects of BPR Success

Costs and Benefits

of Enterprise Systems

Sales Dashboard Example

Anatomy of a Digital

Dashboard

Measuring the Value

of an ERP

Summary of

Software Packages

When is a New AIS Needed?

Approach will vary

 Complexity of the business and software

 Packaged software or custom system

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Chapter 15