After studying 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 un-integrated information systems, describe how the Enron scandal and the Sarbanes-Oxley Act will affect accounting information systems;. | Concepts in Enterprise Resource Planning 2nd Edition Chapter 5 Accounting in ERP Systems Chapter Objectives Describe the differences between financial and managerial accounting . Identify and describe problems associated with accounting and financial reporting in un-integrated information systems. Describe how ERP systems can help solve accounting and financial reporting problems in an un-integrated system. Describe how the Enron scandal and the Sarbanes-Oxley Act will affect accounting information systems Explain accounting and management-reporting benefits that accrue from having an ERP system. Changed “unintegrated” to “un-integrated” (2nd & 3rd bullets, 2nd lines of each) Introduction Accounting is a functional area that is tightly integrated with other functional areas like: Marketing and Sales Supply Chain Management Accounting activities are necessary for decision making Types of Accounting Firms require three types of accounting activities Financial Accounting Documents all transactions that have an impact on the firm Uses this transaction data to make external reports for various agencies (FASB, SEC, IRS) Managerial Accounting Determine costs and profitability of a company’s activities Managerial Information is used for planning and to control a company’s day-to-day activities Tax Accounting is a specialized field that used Financial Accounting information Changed “companies” to “company’s” (2nd bullet, 1st subsection, 1st line) Financial Accounting Common Financial Accounting statements include: Balance Sheet Shows account balances at a particular point in time Gives a good picture of the overall financial health of a company Income Statement Shows sales, cost of sales and overall profit for a period of time (quarter, year) Figure Fitter Snacker sample balance sheet Figure Fitter Snacker sample income statement ERP for Accounting Information Early information systems gathered data primarily for their own functional area . | Concepts in Enterprise Resource Planning 2nd Edition Chapter 5 Accounting in ERP Systems Chapter Objectives Describe the differences between financial and managerial accounting . Identify and describe problems associated with accounting and financial reporting in un-integrated information systems. Describe how ERP systems can help solve accounting and financial reporting problems in an un-integrated system. Describe how the Enron scandal and the Sarbanes-Oxley Act will affect accounting information systems Explain accounting and management-reporting benefits that accrue from having an ERP system. Changed “unintegrated” to “un-integrated” (2nd & 3rd bullets, 2nd lines of each) Introduction Accounting is a functional area that is tightly integrated with other functional areas like: Marketing and Sales Supply Chain Management Accounting activities are necessary for decision making Types of Accounting Firms require three types of accounting activities Financial Accounting .
