2. Chapter 9: Accounting and Enterprise Software
Introduction
Integrated Accounting Software Programs
Enterprise-Wide Information Systems
Selecting a Software Package

3. 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

4. Integrated Accounting Software Programs
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

5. Features of Integrated Accounting Software Programs

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

7. 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

8. Mid-Range and Large System 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, and Accpac

9. Mid-Range and Large System 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

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

18. Supply Chain Example

19. The Architecture of Enterprise Systems

20. 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

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

22. Study Break #3
Which of the following is NOT a distinguishing characteristic of an enterprise-wide (ERP) system?
Hosted solution
A central database
Integration
Best practices for business processes included in the software

23. Study Break #3 - Answer
Which of the following is NOT a distinguishing characteristic of an enterprise-wide (ERP) system?
Hosted solution
A central database
Integration
Best practices for business processes included in the software

24. Study Break #4
Which of the following is correct regarding ERP systems?
Early ERP systems focused on back-office functions
ERP systems evolved largely from a manufacturing environment
ERP systems do not include CRM or SCM functionality
Both a and b are true

25. Study Break #4 - Answer
Which of the following is correct regarding ERP systems?
Early ERP systems focused on back-office functions
ERP systems evolved largely from a manufacturing environment
ERP systems do not include CRM or SCM functionality
Both a and b are true

26. 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

27. Key Aspects of BPR Success

28. Costs and Benefits of Enterprise Systems

29. Sales Dashboard Example

30. Anatomy of a Digital Dashboard

31. Measuring the Value of an ERP

32. Summary of Software Packages

33. When is a New AIS Needed?

34. 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

35. Copyright Copyright 2010 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

36. Chapter 9