Chapter 15: Accounting and Enterprise Software Introduction Integrated Accounting Software Enterprise-Wide Information Systems Selecting a Software Package

Introduction Advances in Accounting Software Initially processed bookkeeping transactions Developed into powerful and complex data collection programs Enterprise Resource Planning Systems (ERP) Provide all accounting functions Interfaced with multiple functional areas of business Manufacturing, Sales and Distribution, HR Applications

Integrated Accounting Software Function Process all types of accounting 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

Features of Integrated Accounting Software Programs

Small Business Accounting Software Information Needs of Small Business Owners Cash Flows Evaluating Profitability Popular Software Packages Quickbooks by Intuit Peachtree Accounting

Small Business Accounting Software Features of Software Vary by provider Numerous reports including financial statements and budget reports Scalability Internet Connectivity Adoption Owners must still learn the various features of the programs

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

Midrange and Large-Scale Accounting Software Cost Considerations Range from $2,000 to over $300,000 Features Multi-currency transactions Currency conversions Various modules and interfaces (CRM, HR) Deployment options (desktop, web-browser) Hosted solutions

Midrange Accounting Software Integration

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

Study Break #1 Which of the following accounting software programs would be appropriate for a small business (e.g., a sole proprietorship with 20 employees)? SAP QuickBooks NetSuite Oracle

Study Break #1 - Answer Which of the following accounting software programs would be appropriate for a small business (e.g., a sole proprietorship with 20 employees)? SAP QuickBooks NetSuite Oracle

Study Break #2 Mid-level accounting software: Can only be deployed through a server networked with desktop computers May be purchased in modules that match various business processes Will not be appropriate for a multinational company because these programs cannot handle foreign currencies Is generally inappropriate for a company operating in a specialized industry, such as retail or not-for-profit

Study Break #2 - Answer Mid-level accounting software: Can only be deployed through a server networked with desktop computers May be purchased in modules that match various business processes Will not be appropriate for a multinational company because these programs cannot handle foreign currencies Is generally inappropriate for a company operating in a specialized industry, such as retail or not-for-profit

Enterprise-Wide Accounting Software Solutions Enterprise Resource Planning Systems (ERP) Enterprise software and Business application suites Integrated program with central database Popular Products Microsoft Dynamics AX SAP All-in-One Oracle Sage MAS 500

Enterprise System Functionality Basic ERP Functions Integration among major business processes Order processing and Fulfillment, Manufacturing, Purchasing, and Human Resources Extended ERP Systems Back-office functions Front-office functions

Extended ERP Systems Supply Chain Management (SCM) Customer Relationship Management (CRM) Business Intelligence Tools (BI) Partnership Relationship Management (PRM)

ERP System Integration

Supply Chain Example

The Architecture of Enterprise Systems

The Architecture of Enterprise Systems Systems Configurations Often run on company’s system Hosted solutions help alleviate risks Centralized Database Each data item stored once Prevents data redundancy Data immediately available to all business functions

The Architecture of Enterprise Systems Application Interfaces Best-of-breed approach Enterprise application integration(EAI) Internet Portals Gateways to other web sites Enhances communication and productivity among employees, customers, partners, and suppliers

Study Break #3 Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system? Must be a hosted solution Multiple databases Integration of business functions Low cost

Study Break #3 - Answer Which of the following is distinguishing characteristic of an enterprise-wide (ERP) system? Must be a hosted solution Multiple databases Integration of business functions Low cost

Study Break #4 Components of an ERP’s architecture typically include: A centralized database and application interfaces Internet portals and multiple databases A centralized database running on a mainframe computer Business intelligence and multiple databases

Study Break #4 - Answer Components of an ERP’s architecture typically include: A centralized database and application interfaces Internet portals and multiple databases A centralized database running on a mainframe computer Business intelligence and multiple databases

Business Process Reengineering and ERPs ERP Integration Entails reengineering an organization Encourage conformity with best practices BPR Success Planning High-level review of process Support from top management

Key Aspects of BPR Success

Costs and Benefits of Enterprise Systems

Sales Dashboard Example

Anatomy of a Digital Dashboard

Measuring the Value of an ERP

Summary of Software Packages

When is a New AIS Needed?

Selecting the Right Software Approach will vary Complexity of the business and software Packaged software or custom system Acquiring Software Utilization of value-added reseller (VAR) Vendor consultants

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Chapter 15