ROLE OF ACCOUNTANT IN ERP

WHAT IS ERP?
The practice of consolidating an enterprises planning,
manufacturing, sales and marketing efforts into one
management system.1
Combines all databases across departments into a
single database that can be accessed by all
employees.2
ERP automates the tasks involved in performing a
business process.1
Sources:
1. http://www.cio.com/summaries/enterprise/erp/index.html, viewed September 19, 2002
2. CIO Enterprise Magazine, May 15, 1999.

HOW DO ERP SYSTEMS WORK?

Managers and
Stakeholders
Human
Sales and
Resource
Delivery
Management
Applications
Applications
Customers

Sales Force
And Customer
Service Reps

Service
Applications

Reporting
Applications
Central
Database

Financial
Applications

Manufacturing Back-office
Applications Administrators Suppliers
And Workers

Human
Resource
Management
Applications

Inventory
And Supply
Applications

Employees

3 July-Aug
Source: Davenport, Thomas, Putting the Enterprise into the Enterprise System, Harvard Business Review,

ERP COMPONENTS
Finance: modules for bookeeping
and making sure the bills are paid
on time. Examples:
General ledger
Accounts receivable
Accounts payable

HR: software for handling

personnel-related tasks for
corporate managers and individual
employees. Examples:
HR administration
Payroll

Manufacturing and Logistics: A

group of applications for planning
production, taking orders and
delivering products to the
customer. Examples:
Production planning
Materials management
Order entry and processing
Warehouse management

Self-service HR

Source: http://www.computerworld.com/printthis/1998/0,4814,43432,00.html, viewed

September 19, 2002.

AN ERP EXAMPLE: BEFORE ERP

Orders
Parts

Sends report

Sales Dept.

Customer
Demographic
Files

Customers

Checks for Parts

Calls back Not in stock
We ordered the parts

Accounting
Files

Accounting
Sends report

Sends report

Invoices
accounting

Vendor
Order is placed
with Vendor
Purchasing
Files

Purchasing

Ships parts

Warehouse

We Need parts #XX

We ordered the parts

Inventory
Files

AN ERP EXAMPLE: AFTER ERP

Orders
Parts

Sales Dept.

Customers

Inventory Data
If no parts,
order is placed
through DB

Accounting
Financial Data exchange;
Books invoice against PO

Order is submitted
to Purchasing.
Purchasing record
order in DB

Database

Books inventory
against PO

Order is placed
with Vendor

Warehouse

Vendor

Purchasing
Ships parts
And invoices accounting

WHO ARE THE MAIN ERP

VENDORS?

Baan

JD Edwards

Oracle

PeopleSoft

SAP

ROLE OF ACCOUNTANT IN ERP

THERE ARE THREE ROLES OF ACCOUNTANTS IN

ERP
(I) DATA COLLECTION
(II) DATA ANALYSIS
(III) INTERNAL REPORTING

CONTD
THE ROLE OF ACCOUNTANTS IS MAINLY
TO BE TRANSACTION DATA
HANDLERS AND FINANCIAL REPORT
PROVIDERS. CLEARLY,
ACCOUNTANTS MUST HAVE CERTAIN
DEGREE OF KNOWLEDGE IN THE
REALM OF TRADITIONAL FINANCE
ACCOUNTING. IN ADDITION,
ACCOUNTING SUPERVISORS THINK
IMPLEMENTING AN ERP SYSTEM
CHANGES THE ROLE OF
ACCOUNTANTS.

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ACCOUNTANT PLAY A VITAL ROLE IN

ERP.
ACCOUNTS IS THE MAJOR COMPONENT
OF THE
ERP WHERE THERE IS BOOK KEEPING
AND ALL
THE DATA REGARDING BILLS PAYMENTS
IS
BEING STORED.

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CONTD
ALL THE ACCOUNTS ASSOCIATED WITH THE
FIRM ARE INTEGRATED AT THE CENTRAL
DATABASE WHICH IS SO CALLED ERP
SOO IFF ACCOUNTANT IS NOT PROVIDIND THE
CORRECT INFORMATION IT WILL RUIN ALL THE
DATABASE AND ASSOCIATED DATA WITH IT.
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CONTD
IF THE INFORMATION COMING FROM THE
ACCOUNTS DEPARTMENT IS NOT CORRECT
IT IS IMPOSSIBLE FOR INTERPRETER TO
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THE END

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THANK YOU

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