Chapter 12 Accounting and Enterprise Software (ON FINAL)

Scalable (def.)

upgrade to more powerful software without reinstalling or reconfiguring data

Benefits of ERP

• Reduction in inventory investment • Improvement in asset management • Improved decision-making • Resolution of data redundancy and integrity problems • Increase in flexibility and responsiveness • Improved customer service and satisfaction • Global and supply chain integration

Business Process Reengineering (BRP) (def.)

act of recreating a core business process with the goal of improving product output, quality, or reducing costs (def. internet)

Integrated Accounting Software (def.)

refers to accounting software that bundles several separate accounting processes in the same package

hosted solution (def.)

software that can be made available on a file server or hosted by a cloud service provider (hosted solution)

Integrated Accounting Software (general notes ppt)

+primarily processes bookkeeping transactions with great speed and accuracy +organizes transaction processing in interconnected modules -General ledger module (foundation of the system) -Other modules: A/R, A/P, inventory, payroll, etc -Journal entries recorded in other modules update the general ledger module +provides sophisticated financial and budgeting analysis tools and customized, graphic accounting reports +has E-commerce features +Scalability accommodates business growth and leads to significant cost savings

customizing ERP software is not encouraged because what?

- it can introduce bugs into the system, and - can create problems with software upgrades

Mid-range Accounting Software

-A mid-range software package is useful when transaction processing needs grow in volume and in complexity. -Modules can be purchased separately. -More advanced features such as foreign currency transactions are incorporated. -Can be deployed from an array of options including the hosted solution arrangement which facilitates scalability and accessibility.

advantages of hosted solution are

-Anywhere access. Reliable Backup. Scalability of computing resources. An overall reduction in IT costs -anytime anywhere access, automatic storage & backup of important data, multi user access, upgrades to newer versions, & ability to print reports directly from host data sources

Small Business Accounting Software

-At the low end, it is available at low costs, even free -Includes a chart of accounts, module for the general ledger, A/R and A/P -Small Business Accounting Software is a good AIS solutions for businesses with less than $5 million in revenue, few employees and relatively a small number of transactions per month

Costs with ERP Implementation

-Costs of hardware and software -Costs of training: technical training and training in the new business processes -Cost of data conversion: transferring data from the legacy system to the new system, and setting up uniform codes for data items -Costs of software maintenance and upgrade -Risk of implementation failure (big bang vs. modular approach)

Costs of ERP

-Hardware -Software -Training: Technical & Business processes -Data conversion -Interfaces and customization -Professional services -Reassigned employees -Software maintenance -Software upgrades

Enterprise-wide Information Systems High-end accounting software programs

-High-end accounting software programs such as Enterprise resource planning (ERP) systems do much more than processing strictly accounting data -are essentially very complex packages that 1) are designed using a REA model, and 2) use relational database technology as the underlying implementation platform

Benefits with ERP Implementation

-Many of the benefits are from cost reductions in inventory and employees as a result of streamlining, speeding up processes, or consolidating processes -Other benefits include data integrity and data analysis features -Benefits such as improving decision process, achieving the business objectives more effectively can be sometimes difficult to quantify

Popular small business accounting software include?

-Microsoft Small Business Accounting -Quickbooks & Quicken by Intuit -Peachtree products

Mid-range Accounting Software examples are

-Microsoft's Dynamics GP -Sage software's MAS 90, MAS200 , Everest and ACCPAC

ERP systems include?

-SAP -Oracle/PeopleSoft -Microsoft Dynamics GP Enterprise

Centralized database

-The database stores information about each data item just once and makes it immediately available to all functions in an organization -to integrate the data from various subsystems an ERP system utilized a centralized database

Buying an ERP system

-is akin to a new way of doing business -entails reengineering an organization by conforming to the best practices of the industry -encourages the separate units to conform to standard practices and be more productive

What does integration mean? When does it occur?

-occurs because ERP software integrates the accounting subsystem with customer relationship management (CRM), business services, HR, & supply chain management -Unlike traditional accounting applications, an ERP integrates the financial (accounting) module with other subsystems (e.g. human resources, manufacturing, distribution) -An ERP system can be configured to automatically react to the creation of a new customer order by updating the shipping schedule, updating the production schedule, ordering any needed part,& updating online sales

Advantage of Centralized database

-one is that the database stores each data just once thus avoiding redundancy but makes the information available to all those functions in an firm requiring the information **another is that it can ensure data integrity across these functional areas

What does being scalability mean?

-whether it be in a financial context or within a context of business strategy, describes a company's ability to grow without being hampered by its structure or available resources when faced with increased production (internet) -accommodates business growth and leads to significant cost savings (ppt)

What does ERP stand for?

Enterprise Resource Planning

What are the purposes of SCM, CRM, BI, and PRM? SCM=supply chain management CRM=customer relationship management BI=business intelligence PRM=partner relationship management

SCM-connect with suppliers and customers through SCM; main purpose is to reduce cycle time for procuring goods for manufacture and sale CRM-main purpose analyze consumer data, this improves consumer relations when the business uses it to better customer needs BI tools- main purpose help managers analyze and report data from their CRM and other systems PRM- main purpose is to enhance the working relationship between partners, particularly when they use the internet

The Architecture of ERP componenets?

Systems configuration, Centralized database, Application interfaces, Internet portals

What are does ERP systems do today?

Today's ERP systems are extended with e-business and other front office capabilities, and have the ability to interface with customers and suppliers through a variety of applications including: - Traditional capabilities - Supply chain management (SCM) - Customer relationship management (CRM) - Business intelligence (BI) tools - Partner relationship management (PRM)

Traditional ERP Functions

Traditional ERP functions are concerned with back- office functions which primarily deal with internal systems, such as manufacturing and human resources

What are the two main features of ERP?

Two important features of ERP software are a central database & integration