Core concepts of accounting information systems 13 by simkin norman chapter 12

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Prepared by Paula Funkhouser University of Nevada, Reno Core Concepts of Accounting Information Systems, 13th Edition Mark G Simkin ● Jacob M Rose ● Carolyn S Norman Accounting and Enterprise Software Chapter 12 Chapter 12: Accounting and Enterprise Software • Introduction • Integrated Accounting Software • Enterprise-Wide Information Systems • Selecting a Software Package Copyright © 2015 John Wiley & Sons, Inc All rights reserved Introduction • Advances in Accounting Software – Increasingly sophisticated and customized – 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Features of Integrated Accounting Software Programs Copyright © 2015 John Wiley & Sons, Inc All rights reserved Small Business Accounting Software • Information Needs of Small Business Owners – Cash Flows – Evaluating Profitability • Popular Software Packages – Quickbooks by Intuit – Peachtree by Sage Software Copyright © 2015 John Wiley & Sons, Inc All rights reserved Small Business Accounting Software • Features of Software – Vary by provider – Numerous reports including financial statements and budget reports – Scalability – Internet connectivity – Cloud computing – Ability to customize Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 10 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 14 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Extended ERP Systems • • • • • Supply Chain Management (SCM) Customer Relationship Management (CRM) Business Intelligence Tools (BI) Collaborative Business Partnerships Partnership Relationship Management (PRM) 15 Copyright © 2015 John Wiley & Sons, Inc All rights reserved ERP System Integration 16 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Supply Chain Example 17 Copyright © 2015 John Wiley & Sons, Inc All rights reserved The Architecture of Enterprise Systems 18 Copyright © 2015 John Wiley & Sons, Inc All rights reserved The Architecture of Enterprise SystemsSystems 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 19 Copyright © 2015 John Wiley & Sons, Inc All rights reserved 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 20 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Study Break #3 Which of the following is a distinguishing characteristic of an enterprise-wide (ERP) system? A Must be a hosted solution B Multiple databases C Integration of business functions D Low cost 21 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Study Break #4 Components of an ERP’s architecture typically include: A A centralized database and application interfaces B Internet portals and multiple databases C A centralized database running on a mainframe computer D Business intelligence and multiple databases 22 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Business Process Reengineering and ERPs • ERP Integration – Entails reengineering an organization – Encourages conformity with best practices • BPR Success – Planning scope and roles – High-level review of process – Support from top management – Continuous involvement of key employees 23 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Key Aspects of BPR Success 24 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Costs and Benefits of Enterprise Systems 25 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Measuring the Value of an ERP 26 Copyright © 2015 John Wiley & Sons, Inc All rights reserved When is a New AIS Needed? 27 Copyright © 2015 John Wiley & Sons, Inc All rights reserved Selecting Software Packages • Approach will vary – Complexity of the business and software – Packaged software or custom system • Acquiring Software – Utilization of value-added reseller (VAR) – Vendor consultants 28 Copyright © 2015 John Wiley & Sons, Inc All rights reserved .. .Chapter 12: Accounting and Enterprise Software • Introduction • Integrated Accounting Software • Enterprise-Wide Information Systems • Selecting a Software Package Copyright... reserved Features of Integrated Accounting Software Programs Copyright © 2015 John Wiley & Sons, Inc All rights reserved Small Business Accounting Software • Information Needs of Small Business... Evaluating Profitability • Popular Software Packages – Quickbooks by Intuit – Peachtree by Sage Software Copyright © 2015 John Wiley & Sons, Inc All rights reserved Small Business Accounting Software
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