Chapter05 Accounting in ERP Systems.pptVIP

Chapter Five Accounting in ERP Systems BUSINESS PROCESS MANAGEMENT Concepts in Enterprise Resource Planning, Third Edition * Concepts in Enterprise Resource Planning, Third Edition * Objectives After completing this chapter, you will be able to: Describe the differences between financial and managerial accounting Identify and describe problems associated with accounting and financial reporting in unintegrated information systems Describe how ERP systems can help solve accounting and financial reporting problems in an unintegrated system Explain accounting and management-reporting benefits that accrue from having an ERP system Concepts in Enterprise Resource Planning, Third Edition * Introduction Accounting – a functional area Accounting is tightly integrated with all other functional areas Accounting activities are necessary for decision making Areas of accounting – financial and managerial accounting Concepts in Enterprise Resource Planning, Third Edition * Accounting Activities Financial accounting Documenting all transactions of a company that have an impact on the financial state of the firm Using documented transactions to create reports for external parties and agencies Types of Financial statements Balance Sheets - shows the account balances in terms of assets and liabilities Income / Profit and Loss Statements - shows the revenues and losses for a quarter Integrated Balance sheet/PL statement is good Concepts in Enterprise Resource Planning, Third Edition * Figure 5-3 Balance sheet and income statement for Fitter Snacker in SAP ERP system Accounting Activities (ctd.) Managerial Accounting Provides managers with detailed information that allows them to determine the profitability of a product, sales, region or marketing campaign. Concepts in Enterprise Resource Planning, Third Edition * Using ERP for Accounting Information Problems associated with unintegrated systems Data sharing usually did not occur in real time Accountants’ data was often ou