Ch05 - Integrated accounting and enterprise software Flashcards
Enterprise resource planning (ERP)
- Provide all accounting functions
- Interfaced with multiple functional areas of business: Manufacturing, Sales and Distribution, HR Applications
Integrated Accounting Software
Function:
- Accounting software bundle separate accounting processes in the same package
- Process most types of ACCT 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
Small Business Accounting Software
Popular Software Packages :
- Quickbooks by Intuit
- Peachtree by Sage Software
Small Business Accounting Software - feature
- Internet connectivity - create website and engage in electronic commerce.
- Export accounting data into XBRL format.
- Cloud computing - store data and use accounting software, on hosted sites
- Scalability - software grow when company grow // “compatibility with other systems”
- Ability to customise
Midrange and Large-Scale Accounting Software
Utilization:
- Transaction processing needs grow
- Volume and complexity
Popular Software Packages : Microsoft Dynamics GP, SAP Business One, Epicor, Sage software’s MAS 90, MAS 200 Everest, Made2Manage, Accpac
Cost consideration: Range from $2,000 to well over $300,000.
Midrange and Large-Scale Accounting Software - features
- Multi-currency transactions
- Currency conversions
- 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
Customer relationship management (CRM)
- A tool that helps companies optimism their supply chain
- analyse customer data
Business Intelligence (BI)
- analyze and report data from their firm’s information systems.
- with CRM -> serve customer better
Partner relationship management (PRM) software
- enhance the working relationship between partners
Four major components of an ERP’s architecture
1- system configuration
2- centralized database
3- application interfaces
4- internet portal.
System configuration
- Means how the ERP system is deployed.
- Cost - lower than ERP
- Often run on company’s system
- Hosted solutions help alleviate risks
Centralized database
- integrate data from various subsystems
- Each data item stored once
- Prevents data redundancy
- Data immediately available to all business functions
Application interfaces
- ability of an ERP system to interact with software from independent vendors.
- Best-of-breed approach
- Enterprise application integration(EAI)
best-of-breed approach
purchase software from different vendors
Enterprise application integration (EAI)
is the use of technologies and services across an enterprise to enable the integration of software applications and hardware systems
Portal
- Gateways for external users to access other websites, ERP
- Enhances communication and productivity among employees, customers, partners, and suppliers
- Examples: Dashboards and Mashups
Dashboard
- Portal
- show corporate performance used by senior managers.
Mashups
- Portal
- Web pages that can combine data from two or more sources.
- in the context of ERP - collect data from sources both inside and outside of the firm.
- features: (1) combine internal/external data, (2) ability to create dashboard by themselves.
Business process reengineering (BPR) Success
1- Planning scope and roles
2- High-level review of process
3- Support from top management
4- Continuous involvement of key employees
Spend management
ongoing process of cutting expenses to their bare minimum. - managed by ERP
