1. ACCOUNTING INFORMATION SYSTEMS
Core Concepts of
ACCOUNTING INFORMATION SYSTEMS
Moscove, Simkin & Bagranoff
Developed by:
S. Bhattacharya, Ph.D.
Florida Atlantic University
John Wiley & Sons, Inc.

2. Chapter 8 Accounting and Enterprise Software
Introduction
Integrated Accounting Software Programs
Enterprise-Wide Accounting Software Solutions

3. Integrated Accounting Software Programs
Most companies purchase accounting and enterprise software.
Another option is to “e-source” the software by buying the services of an application service provider (ASP).
Integrated accounting software programs process all types of accounting transactions.
Packages today include Internet connectivity and enable small businesses to create Web sites and engage in electronic commerce.
Middle to high-end accounting software packages are typically sold by a value-added reseller (VAR).

4. Enterprise-wide Accounting Software Solutions
Enterprise resource planning (ERP) systems are integrated programs do much more than process financial data.
The capabilities of accounting software programs to process enterprise-wide data expand with the price and complexity of software.
A valued feature of ERPs is the ability to interface with customers and suppliers. This is termed supply chain management.

5. Specialized Accounting Software
Accounting software has become more sophisticated and customized for specific industry information needs.
Specialized accounting software may include:
Customer relationship management to keep track of sales calls, seminars, and phone calls with prospective clients
Source code that may be customized to fit a particular firm’s needs.

6. Enterprise-Wide Accounting Software Solutions
Enterprise System Functionality: ERP systems originated from manufacturing systems
MRP I Systems: Marketing sales projections, Production schedules
MRP II Systems: MRP I plus Forecasting and planning for all manufacturing resources including labor and overhead
ERP Systems combined MRP II systems with accounting and finance functions

7. Traditional ERP Functions
Order processing and fulfillment
Manufacturing
Purchasing
Human resources

8. Extended ERP Systems
Traditional back-office capabilities of traditional ERP systems, plus…
E-business
Customer management
Supplier management
Business partner management
Strategic business relationship management

9. The Architecture of Enterprise Systems
ERP Configurations
Centralized database
Application interfaces
Extended application interfaces
Internet portals

10. Business Processes and Enterprise Systems
Integrated Business Processes
ERP Systems and Business Process Reengineering

11. Implementing an Enterprise System
Systems Planning and Forming the Project Team
Software and Consultant Selection
Preimplementation Work
Go Live and Follow-up
Training and Change Management

12. Costs and Benefits of Enterprise Systems
Hardware
Software
Training
Technical
Business processes
Data conversion
Interfaces and customization
Professional services
Reassigned employees
Software maintenance
Software upgrades
Reduced inventory investment
Improved asset management
Improved decision-making
Resolved data redundancy and integrity problems
Increased flexibility and responsiveness
Improved customer service and satisfaction
Global and supply chain integration

13. Copyright Copyright 2005 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.

14. Chapter 8