ACC200 Ch2 Set 3 Flashcards Preview

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Flashcards in ACC200 Ch2 Set 3 Deck (9)
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Electronic data interchange

to communicate with it's suppliers. Every year it processes over half a million invoices electronically, thereby eliminating paper documents & dramatically reducing costs & errors. This has resulted in higher profits & more accurate information. EDI is the electronic communication of transactions (orders, confirmations, & invoices) between organisations.



are used by employees to control operational activities & by managers to make decisions as well as to formulate business strategies.


Integrated enterprise resource planning system?

Integrated ERP database:
- Revenue cycle

- Expenditure cycle

- General ledger & reporting cycle

- Production cycle

- HRM cycle / payroll sub cycle


Typical ERP module includes?

- financial (general ledger & reporting cycle
- human resources & payroll (HRM cycle/payroll subcycle)

- order to cash (revenue cycle)

- purchase to pay (expenditure cycle)

- manufacturing (production cycle)

- project management

- customer relationship management (CRM)

- system tools


ERP advantages?

- an ERP provides an integrated, enterprise-wide, single view of the organisation's data & financial situation. Storing all corporate data in a single database breaks down barriers between departments & streamlines flows of information.
- data input is captured or keyed once, rather than multiple times, as it is entered into different systems. Downloading data from one system to another is no longer needed


ERP advantages?

- Management gains greater visibility into every area of an enterprise & greater monitoring capabilities. Employees are more productive & efficient because they can quickly gather data from both inside & outside their own department.
- An organisation gains better access control. An ERP can consolidate multiple permissions & security models into a single data access structure.


ERP advantages

- Procedures & reports are standardised across business units. This standardisation can be especially valuable with mergers & acquisitions because an ERP system can replace different systems with a single, unified system.
- Customer service improves because employees can quickly access orders, check inventory, shipping information & past customer transaction details.


ERP advantages

- Manufacturing plants receive new orders in real time, & automation of manufacturing processes leads to increased productivity.


ERP disadvantages

- cost
- amount of time required

- changes to business processes

- complexity

- resistance