Core concepts of accounting information systems 13 by simkin norman chapter 12

• Advances in Accounting Software – Increasingly sophisticated and customized – Developed into powerful and complex data collection programs • Enterprise Resource Planning Systems ERP –

Prepared by Paula Funkhouser University of Nevada, Reno

Core Concepts of Accounting Information Systems, 13th Edition

Mark G Simkin ● Jacob M Rose ● Carolyn S Norman

Accounting and

Enterprise Software

Chapter 12

Chapter 12:

Accounting and Enterprise Software

• Introduction

• Integrated Accounting Software

• Enterprise-Wide Information Systems

• Selecting a Software Package

• Advances in Accounting Software

– Increasingly sophisticated and customized

– Developed into powerful and complex data collection

programs

• Enterprise Resource Planning Systems (ERP)

– Provide all accounting functions

– Interfaced with multiple functional areas of business

– Manufacturing, Sales and Distribution, HR Applications

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

Small Business Accounting

Small Business Accounting

Midrange and Large-Scale

Accounting Software

• Utilization

– Transaction processing needs grow

– Volume and complexity

• Popular Software Packages

Midrange and Large-Scale

– Various modules and interfaces (CRM, HR)

– Deployment options (desktop, web-browser)

– Hosted solutions

Specialized Accounting

Information Systems

• 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

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

D Is generally inappropriate for a company operating in a specialized industry, such as retail or not-for-profit

Study Break #2

Enterprise-Wide Accounting

Information Systems

• 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)

• Collaborative Business Partnerships

• 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

– Gateways to other web sites

– Enhances communication and productivity among

employees, customers, partners, and suppliers

Which of the following is a 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

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

Business Process

Reengineering and ERPs

• ERP Integration

– Entails reengineering an organization

– Encourages conformity with best practices

• BPR Success

– Planning scope and roles

– High-level review of process

– Support from top management

– Continuous involvement of key employees

Key Aspects of BPR Success

Costs and Benefits

of Enterprise Systems

Measuring the Value

of an ERP

When is a New AIS Needed?

Selecting Software Packages

• Approach will vary

– Complexity of the business and software

– Packaged software or custom system

• Acquiring Software

– Utilization of value-added reseller (VAR)

– Vendor consultants