Chapter 15-1

Chapter 15:Accounting and Enterprise

Software

Introduction

Integrated Accounting Software

Enterprise-Wide Information Systems

Selecting a Software Package

Chapter 15-2

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 15-3

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 15-4

Features of Integrated Accounting Software

Programs

Chapter 15-5

Information Needs of Small Business Owners Cash Flows Evaluating Profitability

Popular Software Packages Quickbooks by Intuit Peachtree Accounting

Small Business Accounting Software

Chapter 15-6

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

Small Business Accounting Software

Chapter 15-7

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

Chapter 15-8

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 and Large-Scale Accounting Software

Chapter 15-9

Midrange Accounting Software Integration

Chapter 15-10

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

Specialized AccountingInformation Systems

Chapter 15-11

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

Study Break #1

Chapter 15-12

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

Study Break #1 - Answer

Chapter 15-13

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

Study Break #2

Chapter 15-14

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

Study Break #2 - Answer

Chapter 15-15

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-Wide Accounting Software

Solutions

Chapter 15-16

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

Chapter 15-17

Extended ERP Systems

Supply Chain Management (SCM)

Customer Relationship Management (CRM)

Business Intelligence Tools (BI)

Partnership Relationship Management (PRM)

Chapter 15-18

ERP System Integration

Chapter 15-19

Supply Chain Example

Chapter 15-20

The Architecture of Enterprise Systems

Chapter 15-21

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 15-22

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 15-23

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

Study Break #3

Chapter 15-24

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

Study Break #3 - Answer

Chapter 15-25

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

Study Break #4

Chapter 15-26

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

Study Break #4 - Answer

Chapter 15-27

ERP Integration Entails reengineering an organization Encourage conformity with best practices

BPR Success Planning High-level review of process Support from top management

Business Process Reengineering and ERPs

Chapter 15-28

Key Aspects of BPR Success

Chapter 15-29

Costs and Benefitsof Enterprise Systems

Chapter 15-30

Sales Dashboard Example

Chapter 15-31

Anatomy of a Digital Dashboard

Chapter 15-32

Measuring the Value of an ERP

Chapter 15-33

Summary of Software Packages

Chapter 15-34

When is a New AIS Needed?

Chapter 15-35

Approach will vary Complexity of the business and software Packaged software or custom system

Acquiring Software Utilization of value-added reseller (VAR) Vendor consultants

Selecting the Right Software

Chapter 15-36

Copyright

Copyright 2012 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 purchasermay 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.

Chapter 15-37

Chapter 15