ERP AND ACCOUNTING INFORMATION SYSTEMS

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Terry College of Business at the University of
Georgia

• UNIT 6
• ERP AND ACCOUNTING INFORMATION SYSTEMS

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Presentation Readings

• The following presentation is based on the
  following articles.
• "How to Select the Right Accounting Software -
  Part 1" by J. Carlton Collins, Journal of
  Accountancy
• "The Changing Landscape of Computerized
  Accounting Software" by Susan A. Honig, The CPA
  Journal
• "Client/Server Financial Reporting A Primer for
  Accounting Professionals" by Gary M. Fleischman,
  C. Michele Matherly, and Karen B. Lanese, The CPA
  Journal

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Accounting Software Market

• Low-End Products
• Up to 5 Million
• Middle Market Products
• Between 2 Million and 50 Million
• Beginning ERP Products
• From 25 million to 500 Million
• ERP Products
• More than 500 Million

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Accounting Software Trends

• Client/Server Architectures
• Database Driven
• Enterprise Solutions
• E-nabled
• Customization Capabilities
• Reporting and Analysis Functions

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Client/Server Architectures

• Real-time and automated postings
• Reporting capabilities are distributed to users
• CPAs used less for financial recording
• CPAs used more for system and financial analysis

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Client/Server Architectures

• Creates the Electronic Audit Trails and
  Transaction Flows
• Advantages
• Streamlined Processes
• Integrates Functional Areas
• Minimizes waste and duplication
• Eases Accounting Record Maintenance
• Requirements
• Redefined Job Responsibilities
• Security Evaluation
• Business Process Reengineering

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Database Driven

• SQL - Structured Query Language
• Standard interactive and programming language for
  getting information from and updating a database.
• Increases the ability to share data with
  disparate systems and applications

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Database Driven

• ODBC - Open Database Connectivity
• Standard or open application programming
  interface for accessing a database.
• Allows access to data in a number of different
  databases
• ODBC handles SQL requests and converts it into a
  request the individual database system
  understands.

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Database Driven

• ODBC and SQL
• Facilitates communication between multiple
  software and hardware products and accounting
  systems / databases
• Facilitates Internet transactions
• Facilitates drill-down functions

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Enterprise Solutions

• Encompass the entire enterprise from HR to
  Material Management
• Extend to External Enterprises
• Applied to High-End and Mid-Level Applications
• Facilitated by Database, Internet, and Network
  Technology

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Enterprise Solutions

• Examples of Functional Areas

• Logistics
• Production Planning
• Materials Management
• Quality Management
• Plant Maintenance

• Accounting
• Financial Accounting
• Investment Management
• Controlling
• Treasury

• Human Resources
• Personnel Management
• Recruitment
• Travel Management
• Payroll Accounting
• Personnel Capacity Planning

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Enterprise Solutions

• Accounting
• Financial Accounting
• General Ledger
• A/R Accounting
• A/P Accounting
• Asset Accounting
• Consolidations
• Investment Management
• Planning
• Budgeting
• Controlling

• Controlling
• Overhead cost controlling
• Cost center accounting
• Process cost accounting
• Product cost accounting
• Profitability accounting
• Treasury
• Cash management
• Treasury management
• Market risk management
• Funds management

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E-nabled

• Transactions and Communications are fast becoming
  NET-based.
• This requires Acct Systems to function within
  this environment.
• Customers, Suppliers, Distributors, and
  Manufacturers are no long separated by time and
  space.

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E-nabled

• New languages are being to developed to
  facilitate Internet Communication
• XML
• XBRL
• The cost of operating in this environment has
  decreased dramatically.

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Customization Capabilities

• Described as the single most important question
  in evaluating Acct Applications
• Businesses grow and evolve. So do their needs.
• Customization without Programming
• Reporting
• Forms
• Input Screens
• Users

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Reporting and Analysis Functions

• Linking Data to Productivity Applications
• Drill-Down Functions
• Graphical Reporting
• Provisional Financial Statements
• Real-Time Feedback
• Encompass more than General Ledger Data