Core Concepts of
ACCOUNTING INFORMATION SYSTEMS
Moscove, Simkin & Bagranoff
Developed by:
S. Bhattacharya, Ph.D.
Florida Atlantic University
John Wiley & Sons, Inc.
Chapter 8
Accounting and Enterprise Software
• Introduction
• Integrated Accounting Software Programs
• Enterprise-Wide Accounting Software
Solutions
Integrated Accounting
Software Programs
• Most companies purchase accounting and enterprise
software.
• Another option is to “e-source” the software by
buying the services of an application service provider
(ASP).
• Integrated accounting software programs process all
types of accounting transactions.
• Packages today include Internet connectivity and
enable small businesses to create Web sites and
engage in electronic commerce.
• Middle to high-end accounting software packages are
typically sold by a value-added reseller (VAR).
Enterprise-wide Accounting
Software Solutions
• Enterprise resource planning (ERP) systems are
integrated programs do much more than process
financial data.
• The capabilities of accounting software programs
to process enterprise-wide data expand with the
price and complexity of software.
• A valued feature of ERPs is the ability to interface
with customers and suppliers. This is termed
supply chain management.
Specialized Accounting
Software
• Accounting software has become more
sophisticated and customized for specific industry
information needs.
• Specialized accounting software may include:
– Customer relationship management to keep
track of sales calls, seminars, and phone calls
with prospective clients
– Source code that may be customized
to fit a particular firm’s needs.
Enterprise-Wide Accounting
Software Solutions
• Enterprise System Functionality: ERP systems
originated from manufacturing systems
– MRP I Systems: Marketing sales projections,
Production schedules
– MRP II Systems: MRP I plus Forecasting and
planning for all manufacturing resources including
labor and overhead
• ERP Systems combined MRP II systems with
accounting and finance functions
Traditional ERP Functions
•
•
•
•
Order processing and fulfillment
Manufacturing
Purchasing
Human resources
Extended ERP Systems
• Traditional back-office capabilities of
traditional ERP systems, plus…
–
–
–
–
–
E-business
Customer management
Supplier management
Business partner management
Strategic business relationship management
The Architecture of Enterprise
Systems
• ERP Configurations
• Centralized database
• Application interfaces
– Extended application interfaces
• Internet portals
Business Processes and
Enterprise Systems
• Integrated Business Processes
• ERP Systems and Business Process
Reengineering
Implementing an Enterprise
System
• Systems Planning and Forming the Project
Team
• Software and Consultant Selection
• Preimplementation Work
• Go Live and Follow-up
• Training and Change Management
Costs and Benefits of
Enterprise Systems
Costs
• Hardware
• Software
• Training
– Technical
– Business processes
•
•
•
•
•
•
Data conversion
Interfaces and customization
Professional services
Reassigned employees
Software maintenance
Software upgrades
Benefits
•
•
•
•
Reduced inventory investment
Improved asset management
Improved decision-making
Resolved data redundancy and
integrity problems
• Increased flexibility and
responsiveness
• Improved customer service and
satisfaction
• Global and supply chain
integration
Copyright
Copyright 2005 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
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the use of the information contained herein.
Chapter 8