Accounting information systems 12th SIMKIN and norman chapter 15

Chapter 15:

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

Chapter
15-1


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



Chapter

15-2


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
Chapter
15-3


Features of Integrated
Accounting Software Programs

Chapter
15-4

Small Business Accounting
Software
Information Needs of Small Business Owners



Cash Flows
Evaluating Profitability

Popular Software Packages



Quickbooks by Intuit
Peachtree Accounting

Chapter
15-5


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
Chapter
15-6


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
Chapter
15-7


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
Chapter

15-8


Midrange Accounting
Software Integration

Chapter
15-9


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
Chapter
15-10


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)?
A.SAP

B.QuickBooks
C.NetSuite
D.Oracle

Chapter
15-11


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)?
A.SAP
B.QuickBooks
C.NetSuite
D.Oracle

Chapter
15-12


Study Break #2
Mid-level accounting software:
A.Can only be deployed through a server networked with
desktop computers
B.May be purchased in modules that match various business
processes
C.Will not be appropriate for a multinational company
because these programs cannot handle foreign currencies
D.Is generally inappropriate for a company operating in a

specialized industry, such as retail or not-for-profit
Chapter
15-13


Study Break #2 - Answer
Mid-level accounting software:
A.Can only be deployed through a server networked with
desktop computers
B.May be purchased in modules that match various business
processes
C.Will not be appropriate for a multinational company
because these programs cannot handle foreign currencies
D.Is generally inappropriate for a company operating in a
specialized industry, such as retail or not-for-profit
Chapter
15-14


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
Chapter
15-15


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
Chapter
15-16

Extended ERP Systems
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Business Intelligence Tools (BI)
Partnership Relationship Management (PRM)
Chapter
15-17


ERP System Integration

Chapter
15-18


Supply Chain Example

Chapter
15-19


The Architecture of
Enterprise Systems

Chapter
15-20

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
Chapter
15-21


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
Chapter
15-22


Study Break #3
Which of the following is 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

Chapter
15-23


Study Break #3 - Answer
Which of the following is 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

Chapter
15-24


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

Chapter
15-25