Application Service Providers for Accounting

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Application Service Providers for Accounting

• The What, Why, and How of
• Internet Accounting
• Carol Yacht
• WBITE/CBEA, February 16, 2002

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What are Application Service Providers?

• Internet-delivered software QuickBooks for the
  Web ePeachtree NetLedger (Oracle Small Business
  Suite)
• Accessible anytime, anywhere by authorized users
• Always current
• Users rent software on a monthly basis instead of
  buying and installing software on their hard drive

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CD-installed software lab network or hard
drive Application Service Providers companys
Web server

• Instead of storing the application and data on a
  computer that resides in the classroom or on
  students computers, Application Service
  Providers (ASPs) reside on distant Web servers.
• When using Application Service Providers users
  can work through any Internet connection. This
  new way to perform accounting tasks has
  advantages and disadvantages.

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Why use Application Service Providers?

• Accessible from any Internet connected computer
• Technology support always available
• Software affordable ? free trial!
• Installation easy ? just sign up with your email
  address and password - no computer lab
  involvement
• Exposes students to integrated accounting systems
  that are ready for e-commerce and B2B.

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Drawbacks to Application Service Providers

• High speed connection preferred ? all processing
  done on the Internet
• User becomes vulnerable to integrity of Web
  server ? power outages, system crashes, financial
  health, data security.
• Once adopted, expensive to change to comparable
  computer-based software

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ASP Features
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Course Possibilities using Internet-delivered
Software

• Financial, Principles, or AIS course ? Free trial
  period ?
• 30 days, ePeachtree QuickBooks for the Web
• 14 days Oracle Small Business
• Suite (NetLedger)
• Computer Accounting course ? QuickBooks or
  Peachtree CD software and one of the ASPs (QB for
  the Web ePeachtree or NetLedger).
• Computer Accounting course ?
• three ASPs (QB for the Web, ePeachtree, and
  NetLedger)

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Application Service Provider Specifics
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Application Service Provider Specifics (continued)
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Application Service Provider Specifics (concluded)
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QB for the Web Vendor Overview

• On the QB for the Web menu bar, select
  Vendors. From the drop-down list, select
  Vendor Overview.

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QB for the Web Vendor Transactions for a Service
Business

• Purchase of Supplies Enter Bills
• Vendor Payments Pay Bills

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QB for the Web Enter Bills

• You use the Enter Bills screen to record
  purchases from vendors.

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QB for the Web Purchase of Supplies from a Vendor

• On 10/02/01, received Invoice 66JE and shipment
  from Gator Chemicals for the purchase of dry
  cleaning supplies that included the purchase of
  dry cleaning fluid on credit, Net 30, 300.
•  

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QB for the Web Pay Bills

• On 10/06/01, paid two vendor invoices Gator
  Chemicals, Invoice No. 66JE, 300 and Sales
  Products Supply, Invoice EX32, 245 for a total
  of 545.
•  

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QB for the Web Transaction List by Vendor

• To check that vendor payments were made, you can
  display or print the Transaction List by Vendor
  report.

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ePeachtree Example of Help screen

• Help screens explain the details of creating a
  new transaction.

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ePeachtree Vendor Transactions for a Jewelry
Store (merchandising business)

• Purchase Register is also the purchase journal.
• Vendor payments and returns are reported on the
  Payment Register.

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ePeachtree Vendor Transactions

• You use ePeachtrees Purchase Register to record
  credit purchases from vendors. ePeachtrees
  Purchase Register is the Purchase Journal.
• Purchase Register transaction
• On October 1, 2001, received Invoice 66JE and
  shipment from Jewelry by Jason for the purchase
  of 20 rings on credit at 50 each, terms 1, 10
  Net 30, 1,000.

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ePeachtree Purchase Register

• Here is how ePeachtree records the October 1,
  2001 purchase of inventory from a vendor.

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ePeachtree Purchase Journal

• The Purchase Journal on the next slide shows four
  purchases made from vendors for a total of
  3,350. This is the amount owed to vendors as of
  October 5, 2001.

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ePeachtrees Purchase Journal
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ePeachtree Purchase Register

• The Purchase Register shows a list of the jewelry
  stores purchases, returns and total vendor
  transactions.

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ePeachtree Vendor Payment

• From ePeachtrees navigation bar, select Vendors,
  then payments. Click on the New icon.
• On October 6, 2001, paid Jewelry by Jason for
  Invoice No. 66JE, less the 50 return, and the
  discount.

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ePeachtree Payment Register

• ePeachtrees Payment Register shows vendor
  payments and returns.

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NetLedger Transactions screen
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NetLedger Help screen How do I add transactions?
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NetLedger Vendor Transactions for a
merchandising business

• You use the Enter Bills link to record vendor
  purchases.
• Vendor transaction
• On October 2, 2001, your jewelry store received
  Invoice 66JE and shipment from Jewelry by Justin
  for the purchase of six rings on credit at 50
  each, terms 1 10 Net 30, 300.

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NetLedger October 2 transaction

• The Bill screen shows the purchase of six rings
  at 50 each.

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NetLedger Accounts Payable Register

• The accounts payable register shows the four
  purchases and one return made by the jewelry
  store from October 1 through 5, 2001.

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NetLedger Vendor Payments

• Transaction
• On October 6, 2001, your jewelry store paid
  Jewelry by Justin, Invoice 66JE, for the October
  2 purchase, less a discount and the return of
  October 4, 247.50.

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NetLedger Bill Payments

• NetLedgers Bill Payments screen shows the
  October 6 transaction for payment of Invoice
  66JE, less return and discount.

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NetLedgers October 31, 2001 Trial Balance
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ASPs Financial Statements

• QuickBooks for the Web, ePeachtree, and NetLedger
  include the full range of financial statements.

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Article about ASPs

• Employing an ASP Making Your Payroll and
  Accounting Painless by Wayne Kawamoto
• http//www.applicationplanet.com/money/accounting.
  html

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URLs/Publishers for ASPs

• QuickBooks for the Web (Intuit)
  www.quickbooks.com/qb4web
• ePeachtree (Peachtree Software)
  www.peachtree.com/epeachtree
• NetLedger (Oracle Corp.)
• www.oraclesmallbusiness.com/

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Comparison charts

• Compare QuickBooks products www.quickbooks.com/cho
  osechart.html
• Compare Peachtree products
• www.peachtree.com/html/product_matrix.cfm

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Additional ASP Resource

• Computer Accounting Essentials newsletter
• and more information
• http//www.mhhe.com/yachtessentials1e
• Syllabi for ASP course
• http//user.gru.net/susancrosson/sept/sept.htmfac
  ulty
• (scroll down screen to Syllabi Suggestions)

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CD Software ASP Costs