Transcript A337
A337 Computerized and Manual Systems TOPICS How do accounting systems work in a manual world First extension Same basic structure, but automating the updating process Second extension SUA Transaction entry from screen documents ACCPAC, PeachTree, Great Plains (GP), etc Third extension Integrated accounting/management/finance/marketing software LET’S LOOK AT THE SUA LET’S LOOK AT THE SUA FIRST EXTENSION Automating data entry Ledgers (only There should not be modified directly through a data entry “screen”) should be a “log” of all data entry Access to data entry should be controlled FIRST EXTENSION This extension essentially just took the manual system and put it on computer There were no REAL changes in the structure. The journal/ledger structure might be affected. SECOND EXTENSION Focus is still on Accounting, but the transaction data that is captured and stored is expanded. TRADITIONAL ACCOUNTING SYSTEM JOURNALS (WHERE DATA IS RECORDED) What information is recorded?? SALES JOURNAL Date Customer Dec. 4 Bertram Appliance Dec. 5 Hanover Hardware Dec. 11 Bertram Appliance Dec. 13 Hanover Hardware Inv. or Cr. Memo Number 726 727 728 729 Subs. Acct. No. 406 408 406 408 DECEMBER Subs. Post PURCHASES JOURNAL Date Dec. 11 Dec. 22 Vendor Chicago Office Supply Super Electric Co. Vendor Invoice No. 2179 18719 Debit Acct. Rec. Sales Returns G/L 10200 G/L 30200 13,500.00 6,700.00 9,850.00 1,716.00 DECEMBER Debit Purchases G/L 30500 19,795.00 Credit Sales G/L 30100 13,500.00 6,700.00 9,850.00 1,716.00 Acc# 10800 Other G/L Amount 8,268.00 Post Subs. A/C# 253 252 Credit A/P - G/L 20100 Amount Post 8,268.00 19,795.00 etcetera Purch. Ret. G/L 30600 TRADITIONAL ACCOUNTING SYSTEM No information can be in the ledgers that was not recorded in the journals the ledgers are a direct transcription (posting) of the journals The accounting system ONLY contains transaction information (an exchange has occurred) EVENT-DRIVEN DATABASE APPROACH Many events lead up to what ultimately becomes a transaction Example - sale Receipt of Purchase Order Preparation of Sales Order Header Accepting credit / approving transaction Shipping the goods Preparation of the invoice Information is added at each event. If we record events we have a more complete tracing of the transaction TRADITIONAL ACCOUNTING SYSTEM Who has ownership/access to the data • With a traditional system, data entry of accounting information is maintained by the bookkeeper or accountant. • Sales data is maintained in the sales department • Accounts receivable information is maintained in Accounts receivable perhaps. • There are varying degrees of DBMS approaches • One transaction cycle might involve interaction with all business cells, while others may not. HOW ARE DATABASES DIFFERENT FROM TRADITIONAL STORAGE FOR ACCOUNTING INFORMATION? Who What When Where THIRD EXTENSION Enterprise - Resource - Planning (ERP) systems Sold/provided by large software vendors ERPS ENTERPRISE RESOURCE PLANNING SOFTWARE What it is: Integrative Software Tool that incorporates: Production Accounting Marketing Human Resources Financial Management Modules Programs on top of a database structure Frequently Oracle databases are used APPLICATION LAYER FUNCTIONS • Presentation logic – Presentation of info to user and acceptance of user commands ERP • Application logic – Business logic such as word processors, spreadsheets • Data access logic – Processing required to access stored data (e.g., SQL) • Data storage DBMS/Database – Storing of data generated by programs (e.g., files, records) CLIENT-SERVER ARCHITECTURES Clients (ERP) •Presentation Logic •Application Logic (some) • e.g., Error Checking Servers (ERP, DBMS, DB) •Application Logic (most) •e.g., Business Processes •Data Access Logic •Data Storage APPROACHES In house Large data requirements and personnel commitment Better control over features Faster application Web driven (hosted/ASP/MSP) Lower cost Security issues? ADVANTAGES OF ERPS Coordination and business process improvement If everyone else in your industry has better business processes than your company, what does that mean to you?….. Better information You are more aware of how efficiently you are operating. DISADVANTAGES OF ERPS Cost People ERPs (especially In House) are quite expensive to implement. There is also a LONG startup period (two to three years) Many people may not buy into it - and it doesn’t work unless everyone (or most everyone) does. Personnel to run the system are expensive and hard to keep for In House systems It can overwhelm your business WHAT DOES IT MEAN TO AUDITORS Should be viewed as both an opportunity and a threat to assurance services Opportunity - consulting and implementation services can provide additional revenues Threat - data security is a big question mark for ERPs Auditors cannot afford to be behind the technological curve here